in today’s video I’m gonna quickly show
you how to buy and sell stocks using the Robinhood app which is so easy to do
but there’s a few things that you need to understand first I’ll briefly explain
how they’re free sign up shares work and then I’ll also show you how to lightly
research a company using Robinhood then I’ll show you how to buy and sell stocks
using Robinhood’s so that you can see for yourself how easy it is to do
they’re not the best choice for every type of investor but if you do want to
get free trades and have a really easy platform to use then definitely try
Robin Hood now if you just found this channel I’m Jason with honest finance
and I make a lot of videos on different topics that’ll give your life and your
finances more value so definitely subscribe if you’re into this type of
content but now let’s just hop onto my phone and I’m gonna show you how to buy
and sell shares using Robin Hood okay so once you’re inside the app the way that
the free stock thing works is just if you refer someone to Robin Hood using
your special link then you get a free stock and they get a free stock so it’s
just kind of a win-win and I did leave my referral link in the description so
if you guys want to use that then you can get a stock and I can get a stock
but really if you’ve got friends that are already using Robin Hood just use
their referral link because then you guys can both benefit from it and the
cool thing is is once you’re signed up then you can do the same thing so I’ve
got a free stock here for inviting Samuel so thank you Samuel
this is how it works you just claim the free stock and you’re gonna choose one
of these three question marks just like a stupid Las Vegas thing and then you
scratch it out and we’ll see so it looks like I got sprint which is worth 571 and
honestly I have never gotten anything over ten bucks but that’s my luck I have
had some guys in the comments tell me that they’ve got shares that are worth
over a hundred bucks so maybe you’ll be one of the lucky ones but I haven’t been
so far and then before I get into all the research stuff I do want to let you
know that with the free shares you can’t actually sell those stocks for three
full trading days so just keep that in mind and then if you ever do want to get
your cash for them you have to wait a full thirty days and those are the full
rules for that kind of stuff so if you do get a free share just keep in mind
that those are the two rules with them but that’s about it so as far as
searching for a stock let’s do that right now I’m just going to look for
Pepsi because I know that I don’t own them
I’ll show you guys how to do some quick research on robhinhood so you can just
type in Pepsi if you don’t know the ticker symbol and you’ll be able to find
it so right here PepsiCo PEP is the ticker let’s go into that and it looks
like they are trading at 120 709 right now the markets closed so you’re not
going to see any fluctuation so anyways 127 oh nine is what they’re at per share
this is just looking at a one-day graph by default so let’s move it over to a
five-year this is as far as we can go on Robinhood which honestly is good but I
wish that they could go back further and I would even say ten years would be good
but lifetime is really good as well so we’re gonna look at Pepsi over the last
five years and just by looking at this graph on a very basic basic amount of
research it looks like they are a very healthy company from the looks of this
chart however it does also look like they’re probably overvalued just like
the rest of the stock market that’s just how everything is right now
it’s everything is very expensive so looking at this one 2709
the whole saying buy low sell high you’re definitely not doing that right
now you would be buying high but if you do more research and you just feel like
it’s just gonna keep going up then go for it maybe now is the time to get in
but honestly I would wait for a correction and then put your cash into a
company but that is just me so anyways the stats that Robinhood gives you if
you scroll down just a little bit you can see some basic stats on the last 52
weeks the open the high and the low for the day but really I am just looking at
the two on the bottom right which are the p/e ratio and the dividend yield and
this still doesn’t give you much information but it does at least give
you something the p/e ratio is the price to earnings ratio which is basically how
much a cost per share is relative to how much money they’re actually making so
this is basically saying that a share right now is 14 times more expensive
than what they’re actually making and typically I like to have the p/e ratio
as low as I can get it but it all depends on the industry that you’re
looking at too because if we checked coca-cola and theirs was a 20 then
Pepsi would actually be looking better than Coke but that’s how you’d be
looking at the p/e ratio and honestly I just say
anything below 15 is probably a little bit better on your side looking at those
kind of numbers so and then the dividend yield this is just how much they’re
gonna be paying you as far as a percentage of the shares per year to own
them so 3.25% is what they are currently paying based on the current numbers so
if you bought a share for 127 bucks then throughout the year probably four times
a year from Pepsi they are gonna pay you a quarter of that
3.25% and so those are the two numbers that
you can look at with robhinhood and then if you check down here they’ll also have
different articles and things you can check on just to see if maybe there’s
some more information on the type of information that you’re looking at so
and then we’ve got the analyst ratings 36% say by 60% say hold 4% say so this
is as basic as it gets I wouldn’t even look at any of this kind of information
but they do have it there if you want to look at it they’ve got their earnings
right here based on how everything’s looking you can see the dark grey dots
those are what we were expecting and then it looks like we were actually a
lot higher than that so those are quick indicators on the quarterly results to
tell you how the company’s doing relative to what people thought they
were going to be doing so that’s good as well you keep scrolling down you can get
people also bought so just you know making it easier for you to find other
companies that people were buying as well as Pepsi and then it looks like
they have little lists of stocks that you can look in and then they’ll have an
about PepsiCo which they’re not going to give you much information here just a
short little snippet of what they do what they own how many employees they
have and all that stuff and that is as deep as you can go on Robinhood and
honestly if you guys want to learn how to research stocks more than that you’re
gonna have to check a lot more resources so that you can learn a lot more about
it but you can start with Yahoo Finance and you can also go to the investor
relations relations pages on the actual websites anyways you can go directly to
the companies themselves or you can go to Yahoo Finance and that’s what that’s
what I would recommend you do so anyways let me show you now how to buy and sell
a stock on Robin and this is so easy let’s buy Pepsi
right now for one 2709 so we’re just gonna click buy right down
here on the bottom right and we’re gonna say one share and so I actually know how
much money I have in my account if you look up at the top it says 3383
available and that is because that’s how much cash I have available and the
reason I’m doing this with a more expensive shares because I want to show
you what’s gonna happen as soon as I hit review it is gonna have
a pop up come up and say I don’t have enough money but it says you can deposit
9961 and you can make this deal happen now the cool thing is is that Robinhood
by default will let you instant deposit money up to $1,000 so that you don’t
actually have to wait for it to get into your account because typically it’s
gonna take three days just to get the money into your account so if you want
to trade some stock really quickly and you want to make it happen now you can
up to a thousand bucks and then if you do the Robin Hood gold thing for five
bucks a month then you can actually up that all the way up to fifty grand as
long as you have enough money to back it in your actual assets so that’s how that
works it’s telling me right now that I need 9961 to make this happen and I
don’t want to do that right now because I’m not actually gonna make this happen
but let’s go into another company and show you how this works or you know what
actually we can just do the same thing here let’s pretend that I did want to
buy one share of Pepsi for a hundred and twenty 709 that is the market price keep
in mind and a better way to do this is if you look up at the top right there
are these order types click that I wish that they made it more conspicuous but
they don’t so click this right here and you’ve got your different types of
orders that you can set which are a lot better than just buying things that
market price so the one that I like to do is called a limit and what this does
is it makes it so you just set a maximum of what you want to buy the share at and
that’s what it’ll buy it at so it’s trading at 127 let’s say that it was
moving quite a bit during the day you could set that to 125 and if you feel
confident that it’ll move to that amount within the day then you can get it for
125 and the cool thing is about that is that if you’re buying a lot then that
can actually save you some money and if it doesn’t hit the number then oh well
try again the next day I suppose but let’s do 120 okay I know that’s not
going to hit 120 today for sure or tomorrow but we’re gonna continue and
we’re gonna say market hours only and here’s the cool thing we can do this
through the next trading day that’s good through 2:00 p.m. Eastern
Time or you can actually set a 90-day period so you can actually keep that
limit then it will automatically by however many you told it to at that
price and that will hold it for 90 days so
it’s almost like you can let it automate for you and make it a lot easier to do
this kind of stuff so that’s how you do it at this point you just hit continue
and then you’d say execute so now I’ll just hit review and you guys can see for
yourself I have to put in 86 17 to make this
happen and I’m not gonna do that because I don’t actually want to do this right
now but that is how you would buy a share and if you do have enough money in
your account obviously the warning won’t pop up and you can execute the order and
that is how it works now as far as selling a share goes it is the exact
same thing so let’s go into something that I own here I know that I own some
four chairs so let’s go on the Ford F is the ticker symbol okay so if I own some
it’s gonna say trade looks like I own five shares of Ford by the way it has
been like the lousy isnora stock ever I’ve owned them for like three years and
I haven’t seen anything happened with them look at this five year track record
it is just in my opinion I don’t really have any worries about the company
themselves but it’s definitely just a downtrend
anyways let’s see so we’re gonna trade some shares of Ford we just hit trade
and in this case we want to sell and let’s say that we want to sell two
because I know that I have five and it tells me right up at the top how many I
have I have five shares available market price 948 if you’re happy with that go
for it otherwise you can do a limit order just like I did earlier and you
can set a limit for it all that fancy stuff and that makes it a lot better so
anyways that how you do it and you just hit review
and then right here where it says swipe up to submit boom as soon as I swipe up
it executes and it is over with and keep in mind that if you do set limit orders
you can cancel them at any time you want you’re not locked into anything but if
you do if you do buy something at market price and the markets open then you are
definitely going to have things happen very quickly and you can’t get out of it
but you can cancel the other kind of stuff anyways that’s all I hope you guys
enjoyed this video and I do have another video that’s a review on Robin Hood that
goes into a lot more detail on a actual perspective of using the app for a
couple years that I think you guys would be interested so I’ll show that over
here you can click on it watch it and feel free to subscribe if you guys want
to anyways thanks that’s all