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The Truth about Robinhood app
Is Robinhood Good for Day Trading?
First, let’s talk about what Robinhood is. The Robinhood trading app was one, if not the very first brokerage to offer free trading as in no fees. No fees as in no commission fee per trade like many of the other brokerages used to charge. That’s right, thanks to Robinhood’s no commission fee, many large brokerages have switched to no commission fee as well. Robinhood is a very clean and easy-to-use trading app that does not require a lot of experience to use from day one. All one has to do is download the app, link a bank account, and transfer money into the new trading account. This could be done quickly and effortlessly and that’s it you have a trading account with no fees.
So, is it good for day trading?
But the question remains, what is truth about Robinhood app and is this app good for active day trading? Or is it more for people who prefer swing trading or long-term investment? As an active day trader, myself I require fast executions, easy to use systems without many steps to input orders. Robinhood its self has decent executions but, in my experience, not super fast. And not nearly fast enough especially for low float small-cap or micro-cap stocks. To place orders you do have to go through 2 different screens. For swing trading that is not a problem but as an active day trader that can be troublesome.
What About Trading Tools In Robinhood?
The next item I want to talk about regarding Robinhood for day trading is the lack of trading tools. For those of you who watch my YouTube channel “Hustle With JesseW” and watch my live trades. You see my charts with tools like VWAP, 9EMA, support, and resistance lines. These are things that Robinhood simply does not offer on their mobile app. These indicators are a huge part of my trading as well as a lack of volume bars. Which coupled with charts, is the number one indicator I would use live trading. With the above personal experience in mind, I would say that Robinhood is not an ideal option for active day traders.
What it's best for!
- Long Term investing
- Swing Trading
- Setting up a watch list
- Watching live price action on the go
- Monitoring stock news
- The earnings calendar for each stock
Things I believe the Robinhood app needs
- Technical analysis tools on charts (essential to a day trader using
- One screen order entry and submit option (essential to a day trader
- using Robinhood)
- Earlier pre-market access (essential to a day trader using Robinhood)
- Full after-hours session (essential to a day trader using Robinhood)
- Paper trading option for both stocks, options, and crypto
- High-interest money market account for settled cash
- Direct access option even at a small fee for routing trades (essential to
- a day trader using Robinhood)
- Customizable dashboard for the individual trader
Closing Thoughts On Robinhood For Day Trading
The Truth about Robinhood app, is that while it is fine for swing trading and long-term investment. It lacks all the tools an active day trader would require to day trade. But thanks to them, many brokers offer no commission fees today and that is something we should all thank them for.
If you want to learn more click here to watch us day trade live.
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