2 Trading Mistakes for All Robinhood Investors to Avoid
The Robinhood app has exploded in popularity over the last several months. An influx of new investors flocked to the zero-commission service while markets tumbled in February and March, and many correctly bought into stocks as a market recovery took hold.
This type of early trading success can sometimes foster boldness, and occasionally even arrogance, among these new investors. I know, because I was the same way when starting out years ago. There are mistakes new investors can avoid to limit the tragic downside to trading that inevitably comes when bad times cycle back, without putting too low a ceiling on potential positive returns. Here are two prime examples of trading mistakes that Robinhood investors should make efforts to avoid.
For the Robinhood app and many of its competitors, buying stock on margin is now just a few clicks away. While this is wildly tempting for some, it's a slippery and dangerous slope to take. Borrowing money as part of your trading process makes your room for error picking stocks much smaller.
Source Fool.com
