I want to give you an update on my Robinhood account, because I haven’t done one for you about it now for weeks. The reason why is I haven’t made any new trades! I like to take positions that I can hold for a period of time and am not a jump in and out guy.
For me I like to buy stocks that are in sectors that are beating the market and that pay dividends. So, when I started tracking this Robinhood Account back in March I bought stocks that were in the mining, energy, shipping, and REIT sectors. Not all of them have gone up, but all together they have helped me generate a steady return in the account that has beaten the performance of Bitcoin and things like the ARKK ETF in the past three months as you can see from this screen shot.
Now this isn’t my main account, which is much bigger than this one. My idea was to see what Robinhood is like for myself and to use it as a teaching tool I can show you. What I am doing in this account is dividing the money up into seven positions. Right now those positions are WPM, CXP, STNG, LTC, O, DHT, and PAAS.
I’ll do a video talking about them more sometime soon and may finally do a new trade in this account during the video.
I don’t really recommend people use Robinhood as a their primary brokerage, because you can now get free trades with Etrade and Ameritrade and Robinhood I believe actually guides people into buying bad things.
The Robinhood app provides no scans, screens, or basic information to enable one to find a good stock to buy. What it does instead is encourage herd behavior by showing people a list of stocks that others own.
When you log in this is what you see.
As you can see, the app encourages people to look at these trending lists for buy ideas, which means herding people.
And what is worse they also encourage people to buy crypto collectible coins!
That was ok on the way up, but now that the entire crypto market is rolling over and broken it’s a disaster for people.
Bitcoin tried to hold $50,000 for a few months, but when it broke through that support level fell down to $30,000.
Now $30,000 appears to be the new $50,000 – a simple do or die level.
I warned before Bitcoin fell through $50,000 that it was headed for a technical chart slaughterhouse and thought people should sell in a post. That’s what I would have done if I were in it.
I still believe selling crypto and moving that money into real things beating the performance of the S&P 500 is the way to win in these markets!
I know people in Bitcoin don’t want to hear that and right now many stock trading gurus and even CNBC personalities are remaining bullish on crypto, perhaps as a way to simply maintain popularity with the masses. And really it’s a “Fast Money” trick to just talk about what is up the most on any given day for attention.
If you got a Twitter account you probably see things like this.
I prefer to invest in things like this:
Investing is about aligning yourself with the trends – buy what is beating the market – and with the odds.
What is more likely to happen?
Is oil going to go to $140 and gold to $5,000 or Bitcoin to one million first – if ever?
Well, I know you can invest in stocks on the commodity trend that make things used in the real world and get dividends on the way up.
You can now see the effects of inflation with your own eyes, because it is starting to happen in the real world..
You can’t see a Bitcoin and can’t see anyone use it as money, because no one does. People use Bitcoin as an instrument of speculation like buying a lottery ticket and to engage in crimes.
I want NOTHING to ever do with it!