How to Get Started Trading With Robinhood

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[Audio] How to get started trading with Robinhood. 

How to Get Started Trading With Robinhood

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[Audio] Why we love Robinhood.  Robinhood is our favorite trading platform for beginners. It's extremely easy to navigate, which is important if you're just getting started with the stock market. 

Why We Love Robinhood...

Robinhood is our favorite trading platform for beginners. It’s extremely easy to navigate, which is important if you’re just getting started with the stock market.

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[Audio] Before we dive in, please take a moment to like this video and subscribe to our channel. We cover a wide range of personal finance topics to help you win with money. 

Before we dive in, please take a moment to like our video and subscribe to our channel.

Please Like and Subscribe

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[Audio] To get started with Robinhood, you need to meet the following requirements: You must be at least 18 years of age. You must have a valid Social Security Number. You must be a U.S. citizen, permanent resident, or have a valid visa. You must have a legal U.S. residential address within the 50 United States or Puerto Rico. If you meet the above requirements, you'll be able to fill out Robinhood's application, either on their website or via the company's downloadable app.  If you use our link in this video's description, you'll receive a free stock when you sign up!

To get started with Robinhood, you need to meet the following requirements:

You must be at least 18 years of age. You must have a valid Social Security Number. You must be a U.S. citizen, permanent resident, or have a valid visa. You must have a legal U.S. residential address within the 50 United States or Puerto Rico. If you meet the above requirements, you’ll be able to fill out Robinhood’s application, either on their website or via the company’s downloadable app.  If you use our link in this video’s description, you’ll receive a free stock when you sign up!

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[Audio] Next, you'll need to fund your Robinhood account using one of your established bank accounts. The company makes this easy and all you need to do is follow the prompts. 

Fund Your Account

Next, you’ll need to fund your Robinhood account using one of your established bank accounts. The company makes this easy and all you need to do is follow the prompts.

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[Audio] I got started with $ 1,100 from my savings account; however, you can start with a much smaller amount if you need.  In fact, Robinhood has no minimum balance requirements, so you could even start with $ 1! Once your account is approved and funded, you're ready to get started. 

No Minimum Balance

I got started with $1,100 from my savings account; however, you can start with a much smaller amount if you need.  In fact, Robinhood has no minimum balance requirements, so you could even start with $1! Once your account is approved and funded, you’re ready to get started.

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[Audio] Log in to your account. You'll see a search bar along the top of the screen. This is where you search for the stock you'd like to buy.  You can type in either the company name, or the stock's ticker symbol if you know it. So, if I wanted to buy stock in Carnival, I'd either type " Carnival" or " CCL" in the search box.

Search for Stocks

Log in to your account. You’ll see a search bar along the top of the screen. This is where you search for the stock you’d like to buy.  You can type in either the company name, or the stock’s ticker symbol if you know it. So, if I wanted to buy stock in Carnival, I’d either type “Carnival” or “CCL” in the search box.

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[Audio] Once you pull up a stock, you'll see a chart to the left that reveals the current stock price, as well as how the stock has been trading over the last day, week, month, 3 months, 1 year and 5 years.  To the right, you'll see the "buy" and "sell" box. To buy a stock, simply choose whether you want to buy it in shares or dollars and then list the amount. Click " Review Order" and then "Buy."  To sell a stock, you'll follow the exact same procedure; however, you'll need to click " Sell ( name of stock)" first, as it's automatically set the buy tab.

Buying and Selling is Easy

Once you pull up a stock, you’ll see a chart to the left that reveals the current stock price, as well as how the stock has been trading over the last day, week, month, 3 months, 1 year and 5 years.  To the right, you’ll see the “buy” and “sell” box. To buy a stock, simply choose whether you want to buy it in shares or dollars and then list the amount. Click “Review Order” and then “Buy.”  To sell a stock, you’ll follow the exact same procedure; however, you’ll need to click “Sell (name of stock)” first, as it’s automatically set the buy tab.

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[Audio] Depending on the particular stock, you may also find news, analyst ratings, and earnings reports underneath of the stock's chart, so make sure you scroll down for that additional information. 

Additional Info

Depending on the particular stock, you may also find news, analyst ratings, and earnings reports underneath of the stock’s chart, so make sure you scroll down for that additional information.

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[Audio] Robinhood has five tabs across the top right-hand side of the page that are super easy to navigate. The "Free Stocks" tab lets you see any free stocks that you received.  It also provides a referral link in case you want to invite others to join Robinhood. The " Portfolio" tab provides information on all of the stocks you've purchased and still own.  If you click the " Cash" tab, you'll see exactly how much money you have remaining to spend on stocks. Click the " Messages" tab to read any new messages that Robinhood has sent your way.  Finally, the " Account" tab is where you want to go to check your trading history, update your banking info, upload documents or adjust your settings. 

Navigational Tabs

Robinhood has five tabs across the top right-hand side of the page that are super easy to navigate. The “Free Stocks” tab lets you see any free stocks that you received.  It also provides a referral link in case you want to invite others to join Robinhood. The “Portfolio” tab provides information on all of the stocks you’ve purchased and still own.  If you click the “Cash” tab, you’ll see exactly how much money you have remaining to spend on stocks. Click the “Messages” tab to read any new messages that Robinhood has sent your way.  Finally, the “Account” tab is where you want to go to check your trading history, update your banking info, upload documents or adjust your settings.

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[Audio] It's important to note that mutual funds and bonds are not offered on Robinhood. Most cryptocurrencies are available though. 

It’s important to note that mutual funds and bonds are not offered on Robinhood. Most cryptocurrencies are available though.

Limitations

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[Audio] Trading Options on Robinhood

Trading Options on Robinhood

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[Audio] Many stock market traders eventually explore the world of options trading, because options have the potential to make more money in a shorter period of time and without risking as much capital.

Options Trading

Many stock market traders eventually explore the world of options trading, because options have the potential to make more money in a shorter period of time and without risking as much capital.

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[Audio] When you enter a ticker symbol in Robinhood, if the stock is optionable, a box will appear at the bottom right of the screen under the " Buy - Sell" box, labeled " Trade Options." Click on this box to enter the options screen.

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When you enter a ticker symbol in Robinhood, if the stock is optionable, a box will appear at the bottom right of the screen under the “Buy - Sell” box, labeled “Trade Options.” Click on this box to enter the options screen.

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[Audio] Along the top of the options screen are buttons for BUY or SELL, and CALL or PUT. Click on BUY or SELL and then CALL or PUT, depending on whether you want to buy or sell an option, and whether you want a Call or a Put option.

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Along the top of the options screen are buttons for BUY or SELL, and CALL or PUT. Click on BUY or SELL and then CALL or PUT, depending on whether you want to buy or sell an option, and whether you want a Call or a Put option.

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[Audio] To the right of this box is the expiration date. Click on this box for a drop-down menu of available expiration dates.  Option strike prices are shown on the left in a vertical column, and the premiums are shown to the right. Scroll up or down to display other strike prices. 

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To the right of this box is the expiration date. Click on this box for a drop-down menu of available expiration dates.  Option strike prices are shown on the left in a vertical column, and the premiums are shown to the right. Scroll up or down to display other strike prices.

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[Audio] The current stock price is shown in an oval in the center of the screen. This separates out-of-the-money strike prices from in-the-money strike prices. Click on the premium box of the strike price you want.

ORCL Buy Call Buy Strike Price $76 $75.5 $75 $74.5 Sell Break Even 97.50 $77.27 $77.03 $76.83 Put To Break Even +2.00% +1.70% +1.38% +1.12% Expiring April 30 % Change 0.00% $75.98 0.00% 0.00% 0.00% Change so.oo $0.00 $0.00 so.oo Price $1.50 $2.03 $2.33

The current stock price is shown in an oval in the center of the screen. This separates out-of-the-money strike prices from in-the-money strike prices. Click on the premium box of the strike price you want.

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[Audio] Details for each strike price are displayed by clicking on the strike price itself. A drop-down menu shows Bid and Ask prices, open interest, implied volatility, option Greeks and more. Simply click on the strike price again to close the menu.

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Details for each strike price are displayed by clicking on the strike price itself. A drop-down menu shows Bid and Ask prices, open interest, implied volatility, option Greeks and more. Simply click on the strike price again to close the menu.

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[Audio] Robinhood allows you to trade combinations of options for trading option spreads. Let's suppose you want to trade a Bull Put Credit Spread on Twitter. Click on the SELL and PUT boxes.  Then click on the premium box of the strike price you want. We'll select the $ 70 strike. The premium is $ 4.23.

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Robinhood allows you to trade combinations of options for trading option spreads. Let’s suppose you want to trade a Bull Put Credit Spread on Twitter. Click on the SELL and PUT boxes.  Then click on the premium box of the strike price you want. We’ll select the $70 strike. The premium is $4.23.

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[Audio] Next, click on BUY and the lower strike price of $ 69, with a premium of 3.70. Notice that the $ 4.23 premium box turns gray.  The transaction box at the right says "Put Credit Spread," which is a nice confirmation that you have correctly constructed the trade you want. 

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Next, click on BUY and the lower strike price of $69, with a premium of 3.70. Notice that the $4.23 premium box turns gray.  The transaction box at the right says “Put Credit Spread,” which is a nice confirmation that you have correctly constructed the trade you want.

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[Audio] The transaction box also shows the total credit you'll receive, which is 53 cents per share, or $53, since one option contract controls 100 shares of stock.  It does not matter if you enter the "sell Put" option or the "buy Put" option in any particular order.

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The transaction box also shows the total credit you’ll receive, which is 53 cents per share, or $53, since one option contract controls 100 shares of stock.  It does not matter if you enter the “sell Put” option or the “buy Put” option in any particular order.

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[Audio] Click the CONTINUE button and you can review and submit your trade. If you want to change the Put options, there is an " X" next to each Put in the transaction box. Click on the X to delete the option.

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Click the CONTINUE button and you can review and submit your trade. If you want to change the Put options, there is an “X” next to each Put in the transaction box. Click on the X to delete the option.

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[Audio] While many trading platforms show both Call and Put data on one screen, Robinhood only shows Call or Put option chains, but not both at the same time.  This makes for a much cleaner and easier to read screen, which is especially nice for those who are new to trading options.

Final Thoughts

While many trading platforms show both Call and Put data on one screen, Robinhood only shows Call or Put option chains, but not both at the same time.  This makes for a much cleaner and easier to read screen, which is especially nice for those who are new to trading options.

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This Photo by Unknown author is licensed under CC BY-SA .

This Photo by Unknown author is licensed under CC BY-SA .