The stock market is a powerful tool that is available to all Americans. After all, It’s our economy that we’re talking about here. It’s our blood sweat and tears that go into it every week so why shouldn’t we get to reap the rewards from it? What has made this so great is that we are going to accomplish this through free stock trading. With a little effort and as little as $10 a week, you can start planting seeds that will grow into wealth. This blog series will be cataloged under ‘”Beginners Market Guide”. So hopefully you have already read ‘How to become Wealthy ONE cent at a time‘ and have already gotten your free share of stock using this link to create your account at Robinhood.com so we can begin trading.
Now that we have all that setup, it’s time to start getting familiar with the app. Let’s check out this video:
This is the Make Americans Wealthy Again tool we will be using to generate income. Robinhood is the hammer, the wrench and the screwdriver we will use to build an additional source of income. You can transfer money from your bank into the app and from the app back into your bank freely. It’s completely free to use, so the only limitation is your will and motivation to learn. It’s like having a savings account on your phone that you have control over. Some people who have gotten really good at trading, will even setup a challenge for themselves by starting an account with $1000 and seeing how fast they can turn it into $10,000. I’m not saying you will be able to do this overnight but if you stick with what you will learn here, you will begin down the path toward that goal. It isn’t difficult but it does take some effort on your part. You’ll have to learn some lingo like float, volume, support and acronyms like SP, SMA, RSI. You’ll have to learn how to read a simple chart and how to find the stocks that are primed to buy. The goal here is to help as many of you as I can reach but ultimately you have to want it. Nobody can motivate you to succeed. If you like living paycheck to paycheck then by all means keep doing what you are doing. If you want to open your mind and take a little risk then you may open a world you never thought was possible.
What stocks do I buy?
Finviz.com is in a league of its own when it comes to stock research. It has a powerful screener tool that is free to use and it can narrow down a list of stocks for any situation that you may be looking for. While it may look intimidating at first, it becomes pretty straight forward once you familiarize yourself with a few terms. For beginners, You may want to focus on ‘Price’ (what stocks you can afford), ‘Volume’ (stick with stocks with over 100k volume) and the ’20-Day Simple Moving Average’. If the price is Above the 20 SMA, it may be a good indicator that the stock is moving in the right direction. When smaller moving averages “Cross Above” higher averages, like the 20 SMA crossing above the 50 SMA, these are key events that investors consider very positive. After you have filtered the stocks down a little bit you can click on the ‘graph’ tab to get an overall picture of how the stock has been performing. Alternatively some people will use the ‘Market Movers’ Gainers/Losers as a starting point for their research. These are stocks that moved the highest percentage that day. It is always recommended to research why they are moving before making a decision.
Setting the screener this way will show you relatively safe stocks that have been growing very steadily that are under $5:
Setting the screener this way will show you stocks that have just moved up rapidly but would need more research as to why and what does the chart look like overall:
Setting the screener this way will show you stocks that have are down but are nearing a level of support. This type of scenario is particularly good because there is more upside potential:
After you have screened you can click the buttons along the bottom of the pull down menus; (Overview, Valuation, Financial, Ownership, Performance, Technical, Custom, Charts, Tickers, Basic, TA, News, Snapshot, Stats) for more information on the list you’ve created. The ‘Charts’ is good for getting a quick glance of what is going on but I recommend using an alternative Chart viewing platform to take a closer look. There are a number available like TradingView.com and Technicianapp.com. I prefer Technicianapp simply because it has a matching free app on my iphone but before that I used TradingView quiet often. Each one of these sites has powerful tools that you can use to really dissect a stock in a hands on way. Adding different ‘studies’ and the ability to map out lines very simply. We will go into detail on whether or not to buy a stock you have found in the next blog but for now just take some time to get familiar with your Robinhood app and the screener tool at Finviz.
If what I’m describing sounds like something you are going to be interested in pursuing then please consider sharing this article and purchase this book. It will save you time and money that would be wasted from learning from your mistakes.