Is Robinhood Good for Day Trading?

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Is Robinhood Good Enough?

 


But the question remains is this app good for active day trading or is it
more of people who prefer swing trading or long-term investment?
As an active day trader, myself I require fast executions, easy to use
systems without many steps to input orders. Robinhood its self has
decent executions but, in my experience, not nearly fast enough
especially for low float small-cap or micro-cap stocks. To place orders
you do have to go through 2 different screens which are already a huge
issue for me as an active trader.

 

What About Trading Tools In Robinhood?


The next item I want to talk about regarding Robinhood for day trading
is the lack of trading tools. For those of you who watch my YouTube
channel “Hustle With JesseW” and watch my live trades, you see my
charts with tools like VWAP, 9EMA, support, and resistance lines. These
are things that Robinhood simply does not offer on their mobile app
and it is a huge part of my trading as well as a lack of volume bars which

I would say coupled with charts is the number one indicator I would
use.Keeping the above personal experience with the app in mind I would
say that Robinhood is not the ideal stock trading app for day traders
and I would not use Robinhood for day trading.

 

Having said that I believe the app is still good for a few tasks.

  • Long Term investing

  • Swing Trading

  • Setting up a watch list

  • Watching live price action on the go

  • Monitoring stock news

  • The earnings calendar for each stock

  • Things I believe Robinhood app needs

  • Technical analysis tools on charts (essential to a day trader using

  • Robinhood)

  • One screen order entry and submit option (essential to a day trader

  • using Robinhood)

  • Earlier pre-market access (essential to a day trader using Robinhood)

  • Full after-hours session (essential to a day trader using Robinhood)

  • Paper trading option for both stocks, options, and crypto

  • High-interest money market account for settled cash

  • Direct access option even at a small fee for routing trades (essential to

  • a day trader using Robinhood)

  • Customizable dashboard for the individual trader

 

Closing Thoughts On Robinhood For Day Trading

Final thoughts on Robinhood are that while it is fine for swing trading
and long term investment it lacks all the tools an active day trader would
require to day trade day in and day out compared to other brokers and
stock trading apps on the market which also have free trading available.

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First, let’s talk about what Robinhood is. The Robinhood trading app was
one of if not the very first brokerage to offer free trading as in no fees
per trade like many of the other brokerages used to charge. That’s right
thanks to
Robinhood free trading many if not all of the large traditional
brokerages have switched to free trading as well. Robinhood is a very
clean and easy to use trading app which does not require a lot of
experience to use from day one. All one has to do is download the app
link a bank account and transfer money into the new trading account.
This could be done quickly and effortlessly and that’s it you have a
trading account with no fees.