|Editor’s Note: Robinhood had a heavy hand in last month’s trading drama. But what really set off the stock’s spike was something called short interest. And “millennial millionaire” Andrew Keene has created a trading system that can help him spot these short squeezes for incredible profit potential. With his detailed recommendations, you could be at the forefront of the next super squeeze trade. Learn how right here.
Ask yourself this question: “What’s important to me as a trader?”
If you answered, “the TOP FREE APP on my phone” – then Robinhood is the way to go.
But if you’re thinking something more along the lines of “open access to the free market and trading tools,” then you should look elsewhere.
Last week, Robinhood broke its arms with the common man by locking retail investors out of their accounts – and now, many are speculating whether the app’s allegiance is to the wealthy elite.
Now, I can’t speculate on what Robinhood’s plan is. But after seeing what happened last week, I want to tell you my story.
Robinhood actually failed my trading experiment after just two weeks… last year.
Here’s why I stayed away from Robinhood before last week’s trading lockout..
Why Robinhood Didn’t Meet My Personal Trading Needs
I started getting curious about the Robinhood app a little over a year ago.
Now normally, I don’t trust my trading to a phone app. And that includes the apps that come with my “traditional” brokerage accounts.
But I couldn’t help wondering how Robinhood works.
The “free trading” was a nice little bonus, but you always have to ask yourself why it’s “free.” Usually, if a product is free, it means you are the product. So, I dug around a bit and I found out that Robinhood sells your data. They sell order flow, transaction information, and more to third parties who execute the trades. And Inc. magazine calls Robinhood “the Facebook of trading platforms” because they sell so much user data.
But this isn’t why my curiosity experiment ended less than two weeks after it started.
It didn’t take long for the platform to log me out, and then logging back in was much more difficult than it should have been. It’d only been a few days, and I was already getting frustrated, especially considering that it was the most popular trading app.
So, boom, end of experiment. And then, one year later, the app confirmed my decision.
Just last week, Robinhood mentioned that their liquidity is affecting their clients’ ability to trade in and out of positions.
The high liquidity came from stocks with something called short interest – which has proven itself to be one of the market’s most reliable indicators. And it’s the key part of Andrew Keene’s newest trading approach…
By identifying “super squeezes,” Andrew has discovered a way to show ordinary folks how to make a killing. And today, he’s going to show you how you can get into position to go after HUGE money on what could be the shorts’ next target.
You’ll see how folks in the market could have turned every $1,000 invested into $17,570…. $53,160… even $71,720 in just a few days with peak gains on some rare and extraordinary plays from this revolutionary trading strategy.
Which reinforced my decision to keep them on the “no thanks” list for me.
Lesson learned – your trading is worth more than “free” commissions and emails with their Robinhood “snacks,” which are really just tiny pieces of financial advice.
Quite frankly, the investment ideas you get as a Straight-Up Profits subscriber are much better than anything you’ll get from Robinhood. The “snacks” are plenty profitable, and I won’t put a limit on how many of them you can trade.
Robinhood became the most popular app on your phone because they spend a lot of money on marketing, not because they provide their users better services.
But for all of Robinhood’s shortcomings, the trading platform did create one positive outcome: They opened the gates for an entirely new breed of investor.
The intelligent, well-informed retail investor.
With that said, I think these same retail investors would be well-served to graduate to more trustworthy brokerage platforms.
When It Comes to Brokers, You Get What You “Pay” For
I’ve been trading for thirty years.
And just last week – during our weekly podcast – Tom Gentile and I were reminiscing about the commissions that we used to charge clients back when we first started.
Seriously, in today’s terms it feels wrong, but back in the day we had to charge higher commissions in order to do business as a trader.
Lucky for you, things have changed. What used to cost thousands of dollars now costs less than a few bucks. And if you’re trading stocks, you’re doing it almost everywhere for free!
Of course, you may have to pay a small commission. But don’t be penny wise, dollar foolish, because you get what you pay for. Here’s what you get for that small commission…
Retail investors today acquire a wealth of tools for the tiny commission that they pay TD Ameritrade, Fidelity, or Charles Schwab (just to name a few).
Charting software, trading platforms, and of course… “snacks” are all included with the price of that miniscule commission.
But best of all, you can talk to a real person! But don’t take my word for it – here’s a true story.
While skiing in Breckenridge, Colorado two years ago, my phone started blowing up.
I checked my phone on our next break to find that some well-timed puts on Canopy Growers Corp (CGC) had hit my target profits of 100%.
I immediately opened the app on my phone (with one of the aforementioned “large brokers”) to find that the app was a little clumsy when it came to entering the order. It didn’t even look like the desktop version I was used to looking at all day long, which threw me off.
Here’s where “you get what you pay for” though.
Included in the app was a number that connected me with a live trader who executed the order for me immediately. Bonus, they charged me the same commission as if I had executed it on my phone.
Within minutes I had executed my order to lock in gains and was out the door to head back to the slopes. Funny thing is, I didn’t even stop to think about how easy or cheap it was. As a matter of fact, I would have gladly paid my four-digit, old-school brokerage commissions for this level of reliability and convenience.
Bottom Line: You often get much more than the amount you pay. When picking a trading platform, don’t automatically choose the free alternative. Life’s too short to trust your investing to cheap knockoffs.
Until next time,