By now you’ve probably heard all about the new robinhood trading app...
It claims it’s leveling the playing field for individual investors, and that’s a good thing...
It even started the no-fee trading phenomenon, and that’s an even better thing...
But most importantly, it’s hooked a generation of young traders, and that’s what everybody’s starting to worry about.
Because in just a few clicks you can buy stocks and even stock options…
Why Robinhood Isn’t the Real Robin Hood
Day Date
By Real Daily Editorial Staff
Heck, you can even trade off your smart watch thanks to the latest version of Robinhood…
Fact #1: In the first quarter of 2020, Robinhood opened more trading accounts than Schwab, TD Ameritrade, and E* Trade combined.
That’s right.
Robinhood opened more than 2 million new accounts in the first quarter of 2020 alone.
That’s a phenomenal amount of growth for any company… much less a trading company in the midst of a global pandemic.
When you couple those numbers with Robinhood’s existing $8.6 billion valuation, the company starts to sound more like something you might want to invest in than a platform you want to invest on.
But you may not want to do that either...
So we can’t be sure how they’ll handle the first severe market correction that occurs on their watch. And there will be a correction.
There always is.
Not to mention, the median age of Robinhood’s users is only 31 years old, which is awfully young to be trading complex instruments like stock options.
And of course, this has all led the company into difficulties both with its users and the federal government.
For starters, in June, one 20-year-old user committed suicide when he mistakenly believed he’d gone into debt to the tune of $730,000 by using the app for trading options.
And that’s led Congress to start eyeing the company and its practices.
So here’s the question Robinhood has us all wondering…
Still, Robinhood hasn’t solved the problem of how to get money from Wall Street to Main Street using the stock market.
Sure, their user base is growing.
And the trading app could even be affecting how well the stock market has performed this year… by bringing millions of new traders into the fold.
But if you really want to know how you can get the best of the suits on Wall Street, there’s nobody who has a better handle on making money for individual investors than options guru Phil Davis.
© year Real Daily
Phil Davis’ Buffett Options Blueprint has worked as his own personal ATM machine for years.
He’s succeeded in both up markets and down markets. And he’s made money whether there was a Republican administration or a Democratic one.
In fact, his system works no matter what’s going on in the market or the world.
Because Phil Davis’ Buffett Options Blueprint doesn’t care about trends. It reacts to facts.
The truth is this strategy is simply one of the best ways we’ve ever come across to make money in the stock market. And that’s the secret to finding Wall Street’s real Robin Hood.
PHIL DAVIS
The pitch for Robinhood is simple…
It’s the no-fee app that allows traders to buy fractional shares of companies they want to invest in.
But before we decide whether Robinhood fulfills its promise of taking from the rich and giving to the poor, let’s look at some statistics.
Because underneath the surface something troubling is brewing...
Fact #2: Out of Robinhood’s 10 million users, more than half are opening their first trading account ever
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