re: Robinhood yay or nay

I tried think talking to my financial advisor about why I should be buying stocks through him given the ridiculous transaction fees (like 5-10% of initial deposit).

He could not give me a legitimate reason. A bunch of fluff BS “we’re a trusted company with highly trained professionals, do you really want to trust an app?”

The only downside to robinhood I’ve found is that there are less stocks and no funds. I’ve made 20% retuns this month through speculative day trading. That would be impossible through any other service given the fees.

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The only downside to robinhood I’ve found is that there are less stocks and no funds.

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What do you mean by “funds” because there are a bunch of ETF’s listed, including riskier leveraged ETF’s. And they have something like 5000+ stocks and ETF’s listed and growing. And other than a limited number of listing from foreign exchanges, my guess is that the majority of the stocks that aren’t listed, are probably ones that are ones are far riskier (e.g., penny stocks) that people shouldn’t be buying for the most part.

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I’ve made 20% retuns this month through speculative day trading.

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As in the last 4ish days, or the last 30ish days. And what’s your long-term average, or per trade average. Because 20% is great, but between crypto last year and the marijuana stocks right now, it’s pretty obvious that a lot of people who have no idea what they’re doing, can get lucky and have a huge gain but weren’t any better at it than the person who got unlucky.

Now it appears you’re wising up and maybe you’re one of the extremely rare individuals who is actually good at day trading, but if you’ve been paying some financial advisor who is clearly dishonest and probably not very good at what he does given his ridiculously high fees, has a fee structure that doesn’t reward performance, and clearly can’t use his performance as a justification, then I would caution getting too confident with this risky approach.

This month meaning the past 30 days. I have no clue what I’m doing for the most part. I’ve just been monitoring some high volume penny stocks looking for consistent high low ranges. Buying low selling high. I might get burned soon though.

This is on Robinhood.

The majority of my money goes into mutual funds which I hand over to my advisor to deal with. I’m going to talk to him again about the fees. If it’s not a performance based fee structure, I’m going to start looking at other firms. I’m not making a ton of money right now so I’m not too concerned with it. Once I graduate and have steadier income, I’ll get more serious about it. Looking to seriously get into day trading though in the future. Gonna try and read up on it over the next year.

Edit: the main reason I’m day trading penny stocks is due to the small amount of money I’m using. Once I have more cash, I’ll move to less risky stocks.

My per trade average is probably 2-4% with some -2% and 6% outliers. Nothing really higher than 6% though.

They remove stocks under .05 now.