Simple Investing Strategy Using the Robinhood App

TL;DR

A simple Robinhood investing strategy is to buy and hold index funds, primarily Vanguard's Total Stock Market ETF, VTI, while choosing individual companies whose products or services you know and trust. Justine demonstrates the approach by purchasing one Disney share for 93 dollars and 25 cents and explains how referral stocks can provide buying power. Read on for the selection criteria and purchase process.

Transcript

investing in the stock market does not have to be some scary thing it doesn't have to be confusing in fact I'm going to share with you in this video my very simple investing strategy using Robin Hood hey guys it's Justine with debt-free and Millennials the channel to help you crush your debt and live payment free if you are new to the channel pleas... Read More

Key Insights

• 🔬 Investing in the stock market can be simplified by using apps like Robin Hood and investing in index funds.
• 🫰 Index funds like Vanguard's total stock market index fund offer exposure to numerous US companies.
• 🍉 Long-term investments in companies an individual is familiar with and believes in can be a part of their investing strategy.
• 🥡 Taking advantage of affiliate referrals on Robin Hood can provide additional funds for investments.
• 💁 Regularly monitoring the performance of stocks and considering market opportunities can inform investment decisions.
• ❓ Keeping a simple investment strategy can be effective for some individuals.
• 🏃 Each person may have a different investing strategy, and it's important to find what works best for individual goals and preferences.

Questions & Answers

Q: What is the simple investing strategy using the Robinhood app?

The strategy has two parts: invest in familiar companies and invest in index funds. Justine says she mostly buys and holds an index fund for a very long time.

Q: Which index fund does Justine use on Robinhood?

Justine uses Vanguard's Total Stock Market ETF, identified by the ticker symbol VTI. She describes it as her favorite index fund.

Q: Why does Justine invest in VTI?

VTI provides exposure to every US company included in its index and tracks that index's performance over time. It lets her spread money across the index instead of selecting every company individually.

Q: How does Justine choose individual stocks?

She considers companies she knows, can track, and uses as a long-term customer. She looks for businesses whose products or services she genuinely likes or believes in.

Q: How did Justine buy Disney stock on Robinhood?

She selected Disney, reviewed the order, and swiped up to submit it. She purchased one share for 93 dollars and 25 cents.

Q: Why did Justine decide to buy Disney stock?

Disney was trading at 93 bucks during a pandemic that had caused unusual stock market conditions. She viewed the decline as an opportunity and intended to hold the share.

Q: What does Justine do with stocks received through Robinhood affiliate referrals?

She typically trades and sells the referral stocks. She then builds buying power that can be used toward investments such as VTI.

Q: How does automatic depositing support the strategy?

Justine says she set up an automatic deposit so she can buy more shares of the index fund. This supports her preferred set-it-and-forget-it approach.

Summary & Key Takeaways

• Definition: The strategy combines index-fund investing with selected stocks in familiar companies.

• Tool: Robinhood is the app Justine uses to buy and sell stocks.

• Definition: VTI is the ticker symbol for Vanguard's Total Stock Market ETF inside Robinhood.

• Compare: VTI spreads money across every US company in its index instead of requiring individual stock selection.

• Who: Justine chooses companies she knows, can track, uses, and genuinely believes in.

• Step 1: Search for a company or fund inside Robinhood and select the desired investment.

• Step 2: Review the order details before purchasing.

• Step 3: Swipe up to submit the stock order.

• Number: Justine bought one Disney share for 93 dollars and 25 cents.

• Number: Her account showed 25 dollars and 85 cents in buying power.

• Definition: Referral stocks are typically sold so their value can become buying power for another investment.

• When: Justine plans to hold index-fund investments for a very very long time.