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Stock trade app Robinhood raising at $5B+, up 4X in a year

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Re: Stock trade app Robinhood raising at $5B+, up 4X in a year

#141

Post by beiller »

jjeaff wrote: post #91
wgerard wrote: post #59

Earlier quoted context omitted.

> My concern is that overall, the product and marketing seem to be geared towards speculative, short-term trading. When I first signed up, the app was recommending that I check out stocks like Apple, Netflix, and Snapchat, not index funds. There's a broad spectrum of public companies obviously, but it's hard to see $AAPL as speculative in the same sense that people call penny stocks or cryptocurrencies speculative (i…

Washington Mutual, Bear Stearns, Lehman Brothers, General Motors, Fannie Mae, Freddie Mac are all good examples of why you should avoid individual stocks, even if they are "blue chip".

I find a good approach is to buy index funds, but when it comes to whatever your subject is, like I.T, you can pick companies you like or think will succeed. Just make sure to look at it in terms of the business and its future.

Re: Stock trade app Robinhood raising at $5B+, up 4X in a year

#142

Post by gandutraveler »

I think RH is great for experienced investors and newcomers like my GF. She always wanted to get into investing but though learning curve is too steep with all the terminologies etc. Anyways, I told her to try RH.She loved it. It's one of the best and simplest trading apps ever designed IMHO. Anyways after using RH for 1 years she ended up opening Betterment and 401k account last year.

I think RH is great way to learn and enter into stock markets. You only learn by trading and losing money.

I also think they shouldn't have entered crypto now. Its too early and it just makes RH look more of YOLO traders/gambers targeted app.

Re: Stock trade app Robinhood raising at $5B+, up 4X in a year

#144

Post by bertil »

DST coming in, that probably means they are interested in internationalisation of the product, which would be interesting. There are many people who know about US-based company but can’t really invest because stock-trading options outside of the US are even worst.

Re: Stock trade app Robinhood raising at $5B+, up 4X in a year

#146

Post by arsenico »

wgerard wrote: post #26
dguo wrote: post #19

I appreciate the zero commission trading, but at the same time, I'm worried about the attitude towards "investing" that they promote. Most people should arguably be putting their money into index funds and holding for the long term[1], not picking individual stocks and following price movements on a daily basis. I wouldn't criticize anyone for speculating (i.e. gambling) with money they can afford to lose. I've done…

> Most people should arguably be putting their money into index funds and holding for the long term I think Robinhood is great for that! Zero commission means you can afford to buy small amounts without worrying about fees eating into your principal too much. You can put in $250 every pay period and buy a share of $SPY without losing ~3% to fees. With commissions involved you'd want to wait until you could afford a l…

You're paying fees for something different than just buying and holding an index ETF - and that is a long-term diversification across asset classes and georgraphies, regular automatic rebalancing of portfolios, goal-based investing with multiple financial goals, reporting, etc. I am not saying that buying a single S&P ETF is bad, but you can do so mych more for your financial future with robos, that it is basically incomparable.

Edit: I also forgot an increasingly important diversification by asset manager as well.

Re: Stock trade app Robinhood raising at $5B+, up 4X in a year

#148

Post by matwood »

TorKlingberg wrote: post #137
mcintyre1994 wrote: post #129

Earlier quoted context omitted.

They also have LifeStrategy 0/20/40/60/80/100 so you can balance stocks vs bonds however you want, and have diversification handled for you.

I think the numbered LifeStrategy funds are only a UK (GBP) thing. Am I wrong?

There are US equivalents.

Re: Stock trade app Robinhood raising at $5B+, up 4X in a year

#149

Post by Balero »

asdsa5325 wrote: post #17

Crypto trading is the least notable reason why they are valued so high. Real reasons: 1) Large number of users 2) Large number of younger users (Millennials love Robinhood) 3) High amount of use per user (due to no fees) They are still a growth company. If they add IRAs (they said they would soon), Website (currently in closed beta), Options (currently in closed beta), and OTC (not sure if they will), then they'll li…

They also have the whole world except the USA to expand to.

Re: Stock trade app Robinhood raising at $5B+, up 4X in a year

#150

Post by mcintyre1994 »

TorKlingberg wrote: post #137
mcintyre1994 wrote: post #129

Earlier quoted context omitted.

They also have LifeStrategy 0/20/40/60/80/100 so you can balance stocks vs bonds however you want, and have diversification handled for you.

I think the numbered LifeStrategy funds are only a UK (GBP) thing. Am I wrong?

I'm in the UK and hold the GBP products, so I'm unsure sorry.
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