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