Swing trading is a great approach to earning money in a short time. But many newcomers struggle to understand the market in the beginning. So, they need to understand the best stocks to swing trade in the market.
Robinhood is a popular platform among swing traders. It is especially handy for new traders. You get a complete graphical representation of trades in the app. This makes buying and selling of trades much easier.
In this article, we will look into how to swing trade on Robinhood. In the end, you will gain a complete step-by-step guide on the process.
What Is Robinhood?
Robinhood is a platform where brokers and dealers can perform swing trades. It does not allow day trading to traders. You can trade ETFs, stocks, and options in Robinhood.
The platform is a well-known application for swing traders. There is no commission fee for swing trading. You can also buy and sell cryptocurrencies without any commission expenses.
Another excellent advantage of using Robinhood is its deposit requirements. The platform does not have any minimum requirements for traders. Thus, Robinhood is a great platform for any novice trader.
The only major disadvantage of using Robinhood is the tax-shelter accounts. The app does not offer such accounts to traders. Also, there are no automated features for trading.
How to Swing Trade on Robinhood: Step by Step Guide
Swing trading in Robinhood is a very simple process. It works like most other swing trading applications. But any newcomer can feel intimidated by the overall process.
So, here is a quick guide.
Open an account and transfer money
The first step in the process is opening your account. You will face very little barrier when opening a Robinhood account.
Begin the step by submitting an application form. In the form, you will request Robinhood for a personal account. The app will verify your personal information, and you will have your account in no time.
After that, you will need to transfer funds to your account. Without it, you cannot buy and sell trades. This is also a simple process. You should find the option to transfer funds inside your profile.
Once the fund is in your account, you can start swing trading.
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7 steps to swing trading in Robinhood
For a new trader, navigating the Robinhood app can be challenging.
So, here are 7 steps to swing trading for everyone in Robinhood.
Step 1
The first thing to do is the most obvious one, really! Open and load the app on your phone. Make sure that the internet connection is stable and working well.
Step 2
Go to the search option and look for your favored trade – stocks, ETFs, or cryptocurrencies. The dashboard will automatically show the current buying price of the trade.
Step 3
Once you select your trade, click on the “Trade” button. This will take you to a new page. The new page is about buying or selling the trade you selected.
Step 4
Now you are on the buy and sell page of the trade. You have seen the price of the trade. Now you can go ahead and buy it. The page will also give you options to select the number of trades you want to buy.
Step 5
In this step, you will need to select everything related to buying the trade. This involves the type of order and number of trades. You will find the order type in the upper right corner and select the number of shares you wish to purchase.
Step 6
Once you properly select everything, you can now confirm the order. The “Confirm Order” button will become clickable only when you select everything properly. After that, you have only one step left.
Step 7
This is the last step to buying the share. All you have to do now is submit your order. To do that, swipe up after confirming your order. Then submit the order, and you will be able to buy the trade you selected.
The selling process is quite similar. A pro tip is to keep the trade in your hand as long as possible. Whenever you feel the price has gone up, you can sell the trade and gain profit. This is how swing trading eventually works.
Conclusion
For a new trader, Robinhood can be one of the best apps to get into. But for that, you need to know how to swing trade on Robinhood. Luckily for you, we have got you covered.
Our step-by-step approach will guide you through buying and selling any trade you want on Robinhood. But we would also recommend you to do your own research. The platform is safe, and anyone can open up an account.
Making money on Robinhood might be quite easy if you have a proper strategy.
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