A few months ago a new app by the name of Robinhood came out with the offer of providing completely free trading on the stock market. Another notable feature is the lack of a minimum balance, meaning that even with just a few dollars you can buy a few shares of a company you like. I have always had interest in the stock market and followed trends, I also keep up with the news on a daily basis, so I decided once this app opened that I would give it a try. So far I have managed to out perform the S&P 500 73.67% of the time.
In addition to my own portfolio that I manage with my limited personal funds I also manage some fantasy portfolios that I create with larger budgets. In this blog I will share all of these portfolios, my own research, and person views on where the market is headed and what the future of the stock market will look like.
So now, the real question is, will Robinhood fundamentally change how the stock market works? Many market experts say no, and they realize that zero commission trading is not new. However, they miss out on one important detail, today’s generation of Uber drivers and Indie artists do not have the same infrastructure that the old school jobs used to provide. Less and less people are able to invest through their company’s retirement funds and people are having a much more difficult time mustering up the cash to buy their own homes. Robinhood offers a chance for the Millennials to get into investing without having to risk the kind of money that they do not even have yet. They also have the personal drive and ingenuity to learn the trade themselves. Tomorrow may be the day that the stock market is flooded with millions of people trading 10-20 shares a time of their favorite stocks rather than just a few day traders and hedge fund managers trading hundreds a minute.
If you don’t have Robinhood, this may be a great time to dive in. The app is free and you can put is as much money as you want. My rule is, for every dollar I spend on fast food I put the same amount right into Robinhood, but that is my vice; feel free to choose your own.