Guide to Robinhood Investing
TABLE OF CONTENTS ❖
Introduction…………...…………………………..…...4
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Tip #1. The Ultimate Trader Mindset………………....6
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Tip #2. Understanding Support and Resistance….....7
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Tip #3. Appeal to Uptrending Stocks ….………...…..10
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Tip #4. Invest Based on Your Own Opinion…….…...11
Tip #5 Trade With a Plan…………..…...……..…...…12
Tip #6 Start Small And Prove Yourself…....……...…13
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Tip #7 Use Earnings Reports/Fundamentals…….....14
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Conclusion……………………………………………..16
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Guide to Robinhood Investing
7 TIPS TO CONSISTENTLY GROWING YOUR ROBINHOOD ACCOUNT
2019 StockMate. All Rights Reserved 2019
©
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Guide to Robinhood Investing INTRODUCTION
Hi, I’m William Smith. You have never read a book like mine. I didn't invent these ideas or strategies. Anything I’ve been able to accomplish today has been a direct result of what others have taught me, supported me through, and even challenged me to do. You will develop your own trading style, my goal is to expand your trading knowledge and give you the foundation you need to profit in the stock market. What I’m going to share with you are the ways that have proven to be right for me. Which just makes it my experience. That’s the only place I can come from, my experience. Like every unique skill, you must be willing to learn the techniques required for you to a become a master. Those that want to live a fulfilling life make each decision with their future in mind. For me, thats traveling the world and investing from my phone. If you haven't figured it out by now thats okay—just know every thought determines how you make decisions and every decision will take you further away, or closer to your goal. I am here to make you grow. I am here to challenge you. I am here to give you 7 of my unique stock trading strategies s trategies to help you consistently profit in the stock market using Robinhood. Don’t just read this book, use this book.
#1. THE ULTIMATE TRADER MINDSET 3
Guide to Robinhood Investing The great practices that I have observed as a notably common trait of the most successful investors in the world, is that they program their imagination to envision the future as if it is already here. The pathway to growing your account begins with your mindset. I am here to show you how to bridge the gap between you knowing nothing about the stock market to becoming consistently profitable. The reason 95% of people struggle to move ahead rapidly faster financially is because they haven't developed a mindset that will take them from where they are to where they want to be. Where there is desire, there is progress. Progress leads to success. Here is an inside look at what it's like inside the mindset of a top 5% trader: “Trade wasn't profitable? Here's a perfect opportunity for me to learn from my mistake and become better so next time, I come out on top. Trade went exactly according to plan, but what could I have done better to get faster results” We all learn every day, and since you're here, you must be passionate about learning too. No one will ever take better care of your money than YOU. It’s absolutely wonderful when you are capable of investing based on what you already know and then reinforcing that practice.
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Guide to Robinhood Investing #2. UNDERSTAND SUPPORT/RESISTANCE Much like real estate investors patiently wait for a good time in the market cycle to buy a home and sell for a profit, as an experienced trader you should enter a position when the stock has confirmed support and starts uptrending. The concepts of support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis. However, if you are looking for in depth analysis using studies like SMA, EMA, MACD or RSI, I recommend learning from Ricky Gutierrez. Gutierrez. He is a technical trader with tremendous knowledge when it comes down to investing in the stock market. In this book, my teachings will be based on simple forms of analysis such as identifying support and resistance and company earnings that you will benefit from when investing in the Stock Market using the Robinhood app. Chart patterns of support and resistance terms are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an asset from getting pushed in a certain direction. At first, the explanation and idea behind identifying these levels seems easy, but as you'll find out, support and resistance can come in various forms, and the concept is more difficult to master than it first appears.
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Guide to Robinhood Investing
Support is a price level where a downtrend can be expected to pause due to a concentration of demand. As the price of a stock drops, demand for the shares increases, thus forming the support line. Meanwhile, resistance zones arise due to a sell-off when prices increase. Often, a support level will eventually become a resistance level when the price attempts to move back up, and conversely, a resistance level will become a support level as the price temporarily falls back. Robinhood lacks some the technical analysis tools that you can find on TD Ameritrade, but price charts allow traders and investors to visually identify areas of support and resistance, and they give clues regarding the significance of these price levels.
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Guide to Robinhood Investing More specifically, they look at: Number of Touches. The more times the price tests a support or
resistance area, the more significant the level becomes. When prices keep bouncing off a support or resistance r esistance level, more buyers and sellers notice and will base trading decisions on these levels. Preceding Price Move. Support and resistance zones are likely to be
more significant when they are preceded by steep advances or declines. For example, a fast, steep advance or uptrend will be met with more competition and enthusiasm and may be halted by a more significant resistance level than a slow, steady s teady advance. A slow advance may not attract as much attention. This is a good example of how market psychology drives technical indicators. Volume at Certain Price Levels. The more buying and selling that has
occurred at a particular price level, the stronger the support or resistance level is likely to be. This is because traders and investors remember these price levels and are apt to use them again. Support and resistance zones become more significant if the levels have been tested regularly over an extended period of time. The Bottom Line
Support and resistance levels are one of the key concepts used by technical analysts and form the basis of a wide variety of technical analysis tools. The basics of support and resistance consist of a support level, which can be thought of as the floor under trading prices, and a resistance level, which can be thought of as the ceiling. Prices fall and test the support level, which will either "hold," and the price will bounce back up, or the support level will be violated, and the price will drop through the support and likely continue lower to the next support level.
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Guide to Robinhood Investing
#3. APPEAL TO UPTRENDING STOCKS My friend Jasey makes investment decisions based entirely on fundamental analysis (news, earnings and value of the company). Although that is a sound strategy s trategy used by great investors like Warren Buffett, I will just be giving you some tips on using technical analysis in this book. If you want to learn how to invest using fundamental analysis you can join the Robinhood Profit Course and learn there. Let me elaborate on the importance technical analysis, remaining patient and waiting for confirmation of an uptrend. I am sure you want to go on your Robinhood app, look at your account, and see an uptrend. ...and that's freaking awesome. Invest in stocks appreciating in value, finding support s upport at higher price points, and soaring to new resistance r esistance levels. Wall Street refers to uptrends as Bullish, and downtrends as Bearish. We want to invest in uptrends simply because we want our account to grow in an uptrending fashion.
The theory of catching it at the perfect time right before it reverses may sound good, but the reality is stocks have a greater probability of continuing in the direction they are going than reversing direction the opposite way. Ricky Gutierrez likes to say, “I identify stocks to be in good deal territory all the time, this doesn't necessarily mean they are a good deal.”
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Guide to Robinhood Investing Think about it. A stock that settles on the support line has potential. It is in good deal territory, but it can only be considered a good deal when there is indication of a push up and it starts uptrending! So let’s focus on catching the middle of an uptrend rather than investing before there is any indication of an uptrend. When you know how to identify Support/Resistance and how to appeal to uptrends you’ll be able to recognize key patterns that will help you to grow your account.
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Guide to Robinhood Investing
#4. INVEST BASED ON YOUR OWN OPINION Pay attention to what you see value in, not what everyone is talking about. More often than not, the hot stocks everyone is talking about are being manipulated and driven up in price because of high volume (volume = amount of people buying or selling the stock) which then results in high volatility (fluctuating pattern) high risk/return. Make decisions based on what you see value in. When you can profit contingent to your own analysis you have a sustainable trading strategy. Trade and enter positions because you want to, and you see value in the stock, not because you were told it is going to blow up. This is speculative investing that is extremely hard to sustain and consistently profit with. When you make investments solely because you recognize a good deal, you will be able to consistently grow your account because you are truly profiting based on the skills you have, not because you have invested in what you hear is a good buy. Invest in what you and you alone have identified as a good deal. You may be asking, how can I form my own opinion on whether a stock is a good deal I can profit from or not, Will? I got you in tip #5!
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Guide to Robinhood Investing #5. ENTER A TRADE WITH A PLAN If you want to make money working from home with your phone for a max of 2 hours a day, become financially independent with the practice of not exchanging your time for money and have the freedom to do whatever you want to do with your time, then doesn't it make sense to enter each trade with a plan? Use this to ensure you identify the margin for profit, the risk involved, and to enter positions based on your own opinion with no emotions influencing your decision.
EXAMPLE OF A TRADING PLAN Have a plan, stick to it, ride uptrends ● 10% margin of profit ● Wait for the bounce (patience) ● Identify support/resistance ● Is there confirmation of an uptrend? ● Indicate risk, where will losses be cut? (2.5%) ● Invest in overall uptrends if you want your account to grow ● Filter out stocks based on this trading plan
It’s not required for you to use this exact same criteria when investing. This is the trading plan I use and I have consistently grown my account using this criteria. Whether you decide to use this exact plan or not you absolutely should have a trading plan tailored to your trading style before taking any position in the stock market.
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Guide to Robinhood Investing #6. START SMALL AND PROVE YOURSELF Begin trading with an amount you will be okay with losing. Your goal as you begin will not be chasing a dollar amount, but to work on hitting a weekly percentage growth goal. Notice how the trading plan I provided you with does not include investing to gain a dollar amount. Would you rather make $100 from the stock s tock market every single day, or would you want to start out with an investment of $100 making 5% ($5) and then increasing that value by 8 - 10% every week. I’ll give you a hint. ...A penny doubled 27 times will equal over a $1,000,000. Seriously. Try it on your calculator. The compound effect is real! When you focus on slowly growing your account by a percentage gain over time, the value of your account will compound as you make a consistent percentage gain. Now it’s easier said than done, which is why I recommend starting with $50 or $100 and investing in at least one share of a company. Make sure you choose a stock about $3 up to $100, the important thing is you look at stocks that have a margin of profit % that will help you hit your weekly goal. Choose stocks from the recommended, the NASDAQ, S&P 500, and from Sunday Stock Talks with Ricky Gutierrez. Once you have proven to yourself that you can consistently grow your account on weekly basis and you feel comfortable investing, then and only then should you deposit more money into your account and begin taking larger position sizes. It can take you anywhere from 2 weeks to 6 months. Those that consistently practice these teachings, will get results.
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Guide to Robinhood Investing #7. HOW TO USE EARNINGS REPORTS (EPS) TO YOUR ADVANTAGE Earnings season is one of the most anticipated points during the financial year for the market. It refers to the months when quarterly reports are released generally in January, April, July, and October. And with the hype of the season come analyst expectations. Analysts use forecasting models, guidance and other fundamentals in order to come up with an earnings per share (EPS) estimate. The market uses these estimates to determine how a company will perform when the earnings are released. For better or for worse, companies are judged by their ability to beat market expectations — all eyes are on whether companies "hit their numbers." In other words, they're judged on whether they manage to match Wall Street analysts' consensus estimates. Knowing the importance of those estimates can help you manage through quarterly earnings results. Keep in mind that there are many analysts, so if you watch them all you are going to get inconsistent results. r esults. So while your investment decisions shouldn't be weighted too heavily on whether companies meet, miss or beat The Street's forecasts, it is worth keeping an eye on how their earnings figures stack up against quarterly estimates.
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Guide to Robinhood Investing A company's ability to hit earnings estimates is important to the price of your stocks. If a company exceeds expectations, it's usually rewarded with a jump in its share price. If a company falls short of expectations, or even if it just meets expectations, the stock price price can take a beating. Look beyond the estimates of course. Analysts take great pains to come up with their estimates for earnings, using a number of different tools including management guidance, past performance, and net income. But these are estimates after all and should be taken as such — not be the be-all and end-all of your investment decisions because of the varying factors that can affect the performance of a company and its stock.
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Guide to Robinhood Investing
THANK YOU FOR READING I hope these 7 tips help you in some way and are a catalyst in your trading success. Take action now, you have no one to blame or take credit for your future future but yourself. Aside from this short ebook, we hope you can use this as a reference tool, and it will help you on your journey. Keep working hard, learning, and growing. This world needs more profitable traders! To contact us reach out to StockMate at
[email protected] Or reach out to me personally via DM on Instagram: @williamsmithh
Thank you so much! William Smith
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