There are a lot of folks who desperately want to learn how to invest in stocks. You have probably heard about some of their legendary successes, and they have you believing that you, too, can become a millionaire overnight. This is not as easy as some people would have you believe. In fact, it takes some hard work and some smart strategies if you intend to be successful at all.
In this article, I am going to share with you some of those strategies that tend to work best for the everyday investor.
Wealthfront – Best investment app for sophisticated portfolio management
Wealthfront is one of the largest independent robo-advisors, and for a small fee it can manage your money, whether that’s in a taxable account or an IRA. Wealthfront uses low-cost ETFs to construct your portfolio and takes into account how much risk you want to take as well as when you’ll need the money. As you deposit money, Wealthfront will add it to your portfolio and keep your account balanced and on target toward your goal.
Wealthfront’s management fee runs 0.25 percent annually, which is the industry standard. It’s an eminently reasonable price for the features on offer, including automated tax-loss harvesting, which effectively covers the annual fee for many clients, says the company. Wealthfront also brings an attractive cash management account (even if you don’t sign up for the investment account), and you’ll receive a competitive interest rate, early access to direct-deposited paychecks and a debit card – all without a monthly fee.
Reasons to get this app: All you’ll need to do is add money to the account and Wealthfront manages your portfolio to reach your goal. The cash management account is cool, too. As a Bankrate user, get $5,000 managed for free when you open a Wealthfront investment account.
Minimum balance required: $500
Fees: Management fee of 0.25 percent of assets annually
GameStop (NYSE: GME) – GameStop is the original Reddit stock. However, don’t be so quick to dismiss the stock. It retains its share of true believers who are holding on to the stock because they believe in the company’s pivot to an e-commerce model. Analysts have a consensus sell rating on the stock so if GME stock is to go higher it will be due to the Reddit crowd. However, the company’s earnings report, scheduled for September 8, will likely be a catalyst for strong price movement.
AMC Entertainment (NYSE: AMC) – AMC Entertainment has garnered the attention of a loyal group of “apes” within the Reddit community. One reason for optimism was that AMC stock was a recovery play. But so far, the box office has not recovered as swiftly as expected. The company faces some fundamental issues with its existing business model. However, like GameStop, loyal investors hold out hope that the company can pivot to a more viable model. Analysts don’t hold out the same belief, and a recent downgrade is not helping the case for retail investors.
Acorns – Best investment app for savers
Acorns is one of the older of the new breed of finance apps, but it remains one of the most popular, because of how easy it is to use. You really don’t have to pay much attention once you’ve set up the app. Link a debit or credit card to your account, and Acorns will round up the total on purchases to the next dollar and invest that difference into one of a few ETF portfolios.
The cost is a modest $1 per month for Acorns Lite, though the company offers other features. If you want to take a step up, you can move to Acorns Personal, which is bundled with Lite, for $3 per month. This tier offers an individual retirement account (IRA), and you’ll be able to open one of three versions: the traditional, Roth or an SEP. You can even roll over an existing 401(k) or IRA.
Acorns chooses your portfolio based on the targeted time until your retirement (calculated as age 59 ½), becoming more conservative as you near that age, a timing that may not be appropriate for all investors. This tier offers an FDIC-protected checking account, too, with no additional fees and fee-free access to thousands of ATMs.
And for a total of $5 per month, you can add Acorns Family, which includes the features of the first two tiers as well as investment accounts for children.
Reasons to get this app: You like getting automatic investments while you’re spending without worrying about it. You like retirement investing without the hassle.
Minimum balance required: $0 for savings account
Fees: $1, $3, or $5 per month depending on the service tier
Amazon (NASDAQ: AMZN) – It shouldn’t be surprising that the first of the “non-meme stocks” to crack this list is Amazon. The company became an essential destination for millions of Americans who were staying socially distant and in their homes. However, AMZN stock has been a roller-coaster stock this year. And until late August, it was down over the previous 12-month period. However, it now looks like Amazon is on the verge of a breakout which is also the consensus opinion of analysts who project the stock has a nearly 20% upside.
Apple (NASDAQ: AAPL) – Apple is the number one purchased stock on Robinhood, and it’s the fourth most mentioned stock in the Reddit forum. The manufacturer of the iconic iPhone is enjoying another strong year and recent boosts in its price target suggest that AAPL stock has further to climb. One reason for this is that Apple has announced it is unlikely to be as affected by the global chip shortage as other companies. As one example of that, it’s new iPhone launch is expected to go off as planned.
Betterment – Best investment app for socially responsible investing
Betterment is one of the (relatively) new wave of robo-advisors, and it’s one of the largest and most popular. The app provides professionally managed portfolios using a selection of ETFs and is calibrated against your own risk tolerance. Betterment can create socially responsible portfolios, including those that focus on climate change or social impact. If you’re willing to stomach a little more risk, the app can find you investments with a potentially higher return over the long run. If you need a safer portfolio, Betterment can do that, too. You can set up Betterment and then kick back while the pros do the rest of the work.
Betterment charges a much smaller price than you’d pay for a traditional financial advisor. The management fee for the basic account amounts to 0.25 percent — a competitive rate in the robo-advisor world, or $25 annually for every $10,000 you have invested. But you’ll have to pay extra for the ETFs that Betterment invests in, as you would at any robo-advisor. The app lets you set goals to invest for, such as a safety net or retirement, and there’s no account minimum.
Reasons to get this app: You like having a professionally managed portfolio for a low cost.
Minimum balance required: $0 for digital service
Fees: Management fee of 0.25 percent of assets annually for digital service
Alphabet (NASDAQ: GOOGL) – Just as Amazon is a household name in e-commerce; Google (whose parent company is Alphabet) is a household name for many reasons, notably online search. The company is drawing the attention of regulators. But for now there doesn’t appear to be much that is going to slow down the stock. GOOGL stock is up 81% in the last 12 months. And although the consensus opinion of analysts is that the stock only has a small upside, recent opinions suggest the stock could have much larger upside.
Alibaba Group (NYSE: BABA) – It’s not easy to invest in Chinese stocks right now. That’s a lesson that investors in the “Amazon of China” have learned the hard way. BABA stock is down 39% in the last 12 months and 15% in the last 30 days ending September 3, 2021. Concern lingers over how much influence the Chinese government will have on the company’s profits. This got further traction as the company announced a $15.5 billion pledge to Beijing’s “common prosperity” vision.
Pfizer (NYSE: PFE) – It’s always best to leave your emotions out of your investment decisions. And that’s the case with Pfizer. No matter your personal feelings about the company’s Covid-19 vaccine, it’s likely to have an outsize effect on the company’s revenue and profits for the next several quarters. News that millions of Americans will likely be receiving a booster shot of the vaccine over the next several quarters should serve as a nice tailwind for PFE stock.
Robinhood – Best investment app for smooth trading
Robinhood is the app to have if you like a smooth interface and avoiding trading commissions.
The app allows you to trade stocks, ETFs, options and cryptocurrency all for free, and you’ll be able to do it in a slick mobile interface that makes smooth work of it all. The stripped-down app is simple to navigate, and after a while you’ll move from screen to screen intuitively as you trade the market. But you’ll have to know what you want to invest in, since there’s no advising here.
You can access a stock’s page from a search bar at the top of the screen, and pull up charts and vital statistics. Also useful is a feed that aggregates stories from news and investing sites, so that you keep on top of what’s going on. After you’ve decided what you want to trade and enter the number of shares to buy or sell, swipe up and the order is on its way.
Another great feature of the app is instant delivery of the first $1,000 of any funds you deposit to the account, so you can start trading immediately. If you’re a member of Robinhood Gold, a premium tier, you’ll have instant deposits on higher amounts, up to $50,000. (Here’s Bankrate’s full review.)
Reasons to get this app: You like trading stocks (and options and cryptocurrency) for free and having a simple way to follow the market.
Minimum balance required: $0
Fees: No commissions for stock, ETF, options or crypto trades
Clover Health (NASDAQ: CLOV) – The short squeeze has become trendier than the expected investment strategy. And advocates of the strategy don’t necessarily believe in the fortunes of the underlying company, but they see an opportunity to turn a quick profit. That certainly seems to be the case for CLOV stock. Short interest is not high overall, but it’s jumped up nearly 20% in the last 30 days. The company is a play on Medicare insurance, but it lacks pricing power in what is a competitive sector.
Microsoft (NASDAQ: MSFT) – It would be easy to look at Microsoft stock as a pandemic and post-pandemic winner. The stock is up 119% since the onset of the pandemic. However, MSFT stock was a solid performer for years prior to the pandemic. In the five-year period from February 2015 to February 2020, MSFT stock was up 321% – an average annual gain of 64%. When you add in the company’s dividend which it has grown by 31% in the last three years, there are many reasons for investors to be excited about owning Microsoft stock.
Webull – Best investment app for low-cost trading
Webull was letting investors trade stocks for free before it suddenly became the cool thing to do, but also offers commission-free trades on options and ETFs. Plus, this broker offers no-fee trades on cryptocurrencies, including Bitcoin, Ethereum and Litecoin, at all hours of the day and night. On top of that, investors can enjoy full extended-hours trading — both morning and evening. Webull still passes on regulatory and exchange fees, which are small (think a dime or two for many trades).
Unlike some other investment apps, you’ll be able to set up a taxable account as well as an IRA account (traditional, Roth or rollover), giving you the flexibility to have more of your financial life at this broker. If you prefer trading from your desktop, you can download the Webull platform and customize watchlists, check out stock charts and manage your investments.
Reasons to get this app: You like no-commission trading across multiple asset classes any time the market is open and the ability to set up an IRA with your investing app.
Minimum balance required: $0
Fees: No commissions for stock, ETF, options or crypto trades
Stockpile – Best investment app for gifting stock
Stockpile is a neat app because it allows you to buy fractional shares of companies. So if you don’t have $300 to buy that one expensive tech stock, you can buy a half or a third of it, instead. Stockpile does not charge any trading fees.
The other neat thing about Stockpile is that it allows you to give a gift card that’s redeemable for stock, so it may be a way to get a younger relative into investing in a fun way. You don’t even need an account to send a gift. Stockpile allows kids to track their investments at any time, and you can set a list of approved stocks for them to trade. The app lets kids share a wish list of stocks with family and friends.
Reasons to get this app: You like investing but don’t have enough to buy high-priced stock and you like the idea of gifting stock to younger relatives.
Nvidia (NASDAQ: NVDA) – In mid-August, NVDA stock broke through a line of support and has been on an upswing. The question for investors is how much of a run does the stock has left. On the one hand, the company stands to benefit as the global chip shortage will make demand stronger than supply for the next several quarters. The company last released earnings in mid-August. Since that point, ten analysts have increased their price target for NVDA stock.
Conclusion
Robinhood is making beginner level stock market investing, so simple for anyone to get started today. An app called Robinhood is changing the game by allowing people to trade stocks free of charge. Best part is that it’s available on smartphones, tablets, computers and linked web browsers. This guide will help you understand Robinhood App and how to use it to be profitable in the stock market.