How to use the Robinhood app

How to use the Robinhood app

HOW TO USE THE ROBINHOOD APP

Like the Knight in the English folklore, the Robin Hood app is a lifesaver. Stock trading has never been better. The two major trademarks; zero commission and ease of use, adds a refreshing taste to stock trading. From the comfort of your mobile phone, you can execute your stock trades, without the usual fear of charges that these transactions attract. As an app built for this generation, it meets the needs of all investors (the old and young) and has largely increased the involvement of young people in stock trading.

It’s Features

The Robinhood app performs fast execution; this allows you to make self-directed orders, thus making the best of a trade (buy or sell) at the best time. The fact that it has a low-latency trading system makes it possible to make the best of price changes that may occur as a fast as a few seconds.

For every stock you choose to buy or sell, the quotes are timely, from real-time market data. The app also gives smart notifications, these keep you up-to-date on future scheduled events, such as splits earnings, dividends etc. The right information at the right time makes all the difference in stock trading.



How does this app work?

First, I must give it to the Robinhood team, they have produced a stylish, simple and easy to the use app, no wonder they won the Apple Design Award.

To use the Robinhood app, you have to:

  1. Download: Like most apps, the Robinhood app can be downloaded from the iPhone app store or Google Play store. After the download is complete, install the app.
  2. Invitation: Once installing is complete, click on ‘Welcome to Robin Hood’ to get an invitation. The invitation system ensures that as new customers join, no errors occur. The invitation is sent as an email and notification on the app.
  3. Set-up: You fill in your personal details, including your social security number. Part of setting up will include linking your bank account to your Robin Hood account and funding it. To do this:
  4. Log in to your bank account.
  5. Set up either a one time transfer or an automatic deposit, which is a scheduled periodic deposit which will be made into your Robin Hood account periodically. When you click on ‘setup automatic deposit’, you select from the options of just once, weekly, twice a month, monthly or quarterly. When this is selected, click on ‘set schedule’. Every deposit or transfer takes 3 business days to be made to or from the Robinhood account.

After setting up, the home screen shows you your total cash at the center. The amount on display is for the stock and cash in your Robin Hood account. The amount you make daily is usually in green or red beneath the total sum. At the bottom, you can select to view your earnings for different periods i.e 1month, 3months, 6months, 1year or all.

  1. Trading: This involves buying and selling.

To Buy

  1. Click on the ‘Search’ or ‘Magnify’ icon at the upper right-hand corner of the home screen.
  2. Type the name or symbol of the company you wish to buy its shares e.g. XYZ. When the search result appears, select to view stats (news about the stock that the Robin Hood app has pulled up from the internet), the stock price and options to buy or sell.
  3. Click the ‘Buy’ button at the bottom, this takes you to another page, a market buy page.
  4. Input the number of stocks $YZ that you wish to buy at the displayed cost displayed. Then click ‘Review’.
  5. On the review page, if all is as you want it, then swipe to submit your buy.

You can schedule the purchase of a stock even before the market opens. All you need do is set up the buy at a convenient price, and then the Robinhood app will make the purchase the minute the market opens and at the best available price in line with your schedule. When the scheduled buy is complete, you will receive a notification. When the market is open, the background screen on a stock page is usually white but turns black when the market is closed.




To Sell

You have to stocks to sell. If you have stocks,

  1. Go to your stock’s main page; click the ‘Sell’ button (it appears next to the ‘Buy’ button).
  2. Select the number of stocks you want to sell at YZ amount.
  3. You will receive a notification when the stocks are sold. This means that it may not be immediately, but as soon as it is possible to sell at the price you have requested, the app will sell.

When stocks are sold, it takes a few days for it to be settled or cleared, before it can be reinvested into buying stocks. This amount appears as unsettled funds on the account page.

  1. Cashing out: The process of moving earnings back to your bank account is very easy with the Robin Hood app, all you need do is click on ‘Transfer to bank account’ on your account page and input amount, then transfer. It takes only 3 business days for this transaction to be completed.
  2. Adding Companies to watch list: There may be Companies whose stocks you would want to buy, as such it will require that you monitor the activity on their stocks so that you can make the best buy. To do this,
  3. Click on the ‘Search’ or ‘Magnify’ icon at the upper right-hand corner of the home screen.
  4. Type the name or symbol of the company you wish to buy its shares e.g XYZ. When the search result appears, click on the ‘+’ sign on the right-hand side, it will turn to a ‘check mark’, click the check mark to confirm.
  5. Click on the ‘X’ to exit the search page.
  6. For the list of Companies on your watch list, scroll down to your homepage.
  7. For the ‘Buy’ or ‘Delete’ options on each company, swipe left on that particular company.

The beauty of this app is that with each use, you discover so many new ways to tweak and make your stock trading experience better.

Mobile, intuitive and no trading commissions are three irresistible features the Robin Hood app brings to your fingertips. What more can there be? Don’t forget the easy-to-use part when trying to make up your mind.

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