The dip in price may be a reaction to a domestic news event like the presidential election, or to global influences like the state of China’s economy, or just because it’s a rainy Tuesday: who the hell knows.Īlthough the response to news events has been shown to be minor (and more pronounced in reaction to positive news like stock earnings than to negative news) fluctuations can last as little as 40 seconds, so I will set up something automated to make sure I catch the price I want. We are in a volatile market right now, and there’s a good chance the stock I want may go even lower before the year’s out.
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When I see money sitting in my Robinhood account, I want to spend it right away because I don’t want it losing the potential interest it would be gaining if it were in, say, an IRA or other savings vehicle. #3: Don’t get impatientĮven though my “investment strategy” (ha ha) is basically to buy low, hold on, collect dividends, and eventually sell high, I still get impatient. So if there’s a stock you have your eye on, don’t even think of buying until you’ve amassed enough “buying power” (Robinhood’s term for available cash) in your account. Unless you have Robinhood Instant, it’ll take about 3 days for your money to transfer from your bank account to the Robinhood app. But darn it, you forgot to add funds, so the opportunity passes you by. You may see a great stock you want to buy RIGHT NOW. #2: Don’t forget to add money well in advance Now, when you do a “Limit Order”, it means you have less money in the kitty (Robinhood calls this “Buying Power”) for buying other stocks. A limit order means that you can tell the app, “Hey, I want to buy Apple stock, but only if it’s $95 or less.” The app will earmark funds for this, and automatically execute the buy when the stock price reaches $95 or less. For myself, I find the “Limit Order” most useful. The different kinds of “orders” are: Limit Order, Stop Limit Order, Stop Loss, and Limit Order. To access the other ways to buy a stock, you tap on the stock you want, you can then tap “Buy”, and then “Order Types” in the upper right-hand corner.
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But this is not the only way to buy a stock, and definitely not the best. When you buy in real-time, you often don’t get the exact price you want because of delay between when you enter the order and when it processes. So I didn’t realize that even Robinhood offers different ways to buy stocks. When I first started using Robinhood, it was my first time buy ing stocks directly, ever.