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Even if you do know what you're doing, it's still not a good idea. You're not likely to be successful without the resources of a large firm backing you up. Ever
by exelius 12y ago
Even if you do know what you're doing, it's still not a good idea. You're not likely to be successful without the resources of a large firm backing you up. Every arbitrage opportunity you can recognize will be completely priced in to the asset in the time it takes you to click "buy". Of course, anyone who know what they're doing knows this.
Buy and hold is literally the only plausible strategy for an individual investor. If you want to invest with a specific trading strategy, find a fund that employs that strategy and buy that fund. I guarantee you that your trading strategy is not novel; if it works, someone has already done it.
- vasilipupkin 12y agowell, you can buy an index fund tracking ETF such as SPY or QQQ or any of the other ones and the trades would be free as opposed to through a normal brokerage. Using this doesn't equate automatically with day trading.
- kasey_junk 12y agoIt won't be free. There is always execution cost. One form that is mentioned in the article is the 3 days of float they are collecting on all of their client accounts. Now whether the execution costs on robinhood are greater or lesser than other platforms is up in the air. But it won't be free.
- vasilipupkin 12y agoright. Well, they won't charge you a brokerage fee, at least
- exelius 12y agoRight, but it's still a buy and hold strategy. People hear "free trades!" and the assumption is that it's a day trading platform, because $7 to execute a $5000 trade (which is roughly what a normal online brokerage charges) isn't an insane fee if you're pursuing a buy and hold strategy.