TS Robinhood Ebook

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TA B L E O F
contents
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How to Maximize Profits Using the Robinhood Trading App
Here’s Why Robinhood Rocks for New Traders
How to Maximize Potential Profits
Swing Trading Strategy #1

The Head-and-Shoulders Breakout

The Moving Average Crossover

The Range Breakout Strategy
Powerful Trading Strategies Combined with the Robinhood

Trading App May Help You Achieve Trading Success!
How to Maximize Profits Using
the Robinhood Trading App
So, you finally got with the program and downloaded the Robinhood
trading app. Perhaps you have already dabbled in the markets, buying
stocks like Facebook or Netflix or maybe you have already made some
options trades. Or perhaps you are considering a move from your expensive
retail broker and want to learn more about the trading application that
has hit the retail investing market by storm. This informative Robinhood
trading guide will give you some important strategies for how to take
advantage of all that Robinhood has to offer.
Here’s Why Robinhood Rocks for New Traders

NOTE** this is NOT sponsored by Robinhood
Robinhood made big waves when it was first introduced and has
continued to expand its product offerings. The company offers a trading
website as well as a robust trading app that allows investors to trade
stocks, ETFs, options and crypto from their iPhones, Apple watches and
Android phones. Yes, you can trade options on Robinhood.
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What makes Robinhood such a great platform for new traders?
Here’s a few reasons:
• Reduced commission costs can potentially have a significant impact

on trading and investment performance
• $0 minimum deposit
• Over 5000 listed stocks
• Over 2000 listed ETFs
• No inactivity, maintenance or ACH transfer fees.
• Mobile app with customizable alerts, candlestick charts and news feed
• Limited research and data
• FINRA and SIPC member
And best of all: Robinhood charges ZERO commissions for traditional

trades. Yes, you read that correctly! NOTE** applicable exchange and regulatory
fees still apply
How to Maximize Potential Profits

Due to its lower-cost structure, Robinhood may be a good choice for active
traders as well as long-term investors. Commissions can have a significant
effect on the bottom line, therefore the platform may be especially useful
for those looking to actively trade listed markets or those who like to trade
multi-leg strategies.
If you are just getting started, swing trading is a great way to trade on
Robinhood. Unlike traditional buy-and-hold investors, swing traders look to
take advantage of “swings” in the price of a stock or asset and try to profit
from those swings. A typical swing trade can last anywhere from a few
hours to several days.
There are many methodologies available to swing trade stocks. Some

traders focus on moving averages while others watch support and
resistance levels.
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Without question, chart patterns are one of the most powerful methods
for trading stocks and identifying breakouts. Pattern trading may also be
particularly useful for spotting trades with the most favorable risk/reward
ratios.
Here are 3 Powerful Swing Trading Strategies to get you started!
SWING TRADING STRATEGY #1
The Head-and-Shoulders Breakout

When it comes to trading chart patterns, the head-and-shoulders is one
of the most powerful trading patterns seen in markets. This strategy is
simple to execute and can potentially lead to significant market moves in
a short period of time. Not only that, but the pattern can also potentially
lead to buying stocks at a relative discount because it may be a bottoming
pattern.
Here’s how it works:
When looking for trades utilizing this pattern, the stock itself is not
important, the structure of the pattern is. Looking at the chart below,
notice how the stock makes a left shoulder swing bottom, followed by a
rally and then a lower swing low called the head. From there, the stock
rallies before encountering selling pressure again, and the stock now
makes a higher low called the right shoulder.
To trade the pattern, you want to buy on an upside breakout of the

neckline which is defined as the resistance line drawn from the peaks of
the rallies. In the example below, the neckline is at $10.
The key, however, is to wait to buy until the pattern has completed. In the
example below, you would look to buy the stock on a close above $10 per-
share.
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Stop-loss placement can vary from trader-to-trader based on risk tolerance
and market volatility. A good rule of thumb, however, is to place an initial
stop below the right shoulder of the pattern. If the market moves favorably,
a stop may then be trailed accordingly.
The Moving Average Crossover

Moving averages are an extremely simple, yet powerful tool employed
by traders and investors. A moving average simply calculates the stock’s
average price over a given time period. For example, the 200-day moving
average is widely used for long-term stock investments. If stocks are above
the 200-day average, investors may be bullish. If trading below the 200-day
moving average, investors may be bearish.
Moving averages can also be very useful for spotting short-term trends in a
stock. For swing trading stocks, the moving average “crossover” strategy can
be useful. This strategy involves the use of two moving averages-the 5-day
and 10-day, for example.
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Here’s how it works:
The strategy simply dictates that you buy stock when the 5-day moving
average crosses above the 10-day moving average and sell the position
when the 5-day moving average cross back below the 10-day moving
average. Pretty simple, right? Check out this chart of Netflix:
Look at the middle of July on the left side of the chart. You will notice that
the 5-day moving average crossed over the 10-day moving average when
the stock was at about $150 per-share. The stock then proceeded to go on
an extended run higher, rising to over $190 per-share. The 5-day moving
average eventually crossed back below the 10-day moving average around
$185 per-share. In other words, this trade could have potentially led to a
gain of about $35 per-share in about two weeks.
Stop-loss placement is again a matter of risk tolerance, market volatility

and preference. A simple rule of thumb may be to place an initial stop
order at the prior day’s low and then trail the stop accordingly.
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The Range Breakout Strategy

Markets spend a great deal of time range-bound. These trading ranges,
which can last for days to weeks to months or even years, can also provide
some of the most powerful trading signals. The strategy is simple, yet very
powerful and can be utilized by both novice traders and experts.
Here’s How it Works:
Look for stocks that have traded in a range for a period of days or weeks.
Draw a line on the chart identifying support and resistance areas (the area
of multiple highs where the market reversed and the area of multiple lows
where the market reversed). To trade an upside stock breakout, look to buy
the stock if it breaches the upper resistance line on a closing basis.
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Powerful Trading Strategies Combined with the
Robinhood Trading App May Help You Achieve
Trading Success!
There are several moving parts to successful trading and investing. Taking
the time to learn powerful and proven trading strategies while keeping
your trading costs to a minimum may potentially help you achieve the
long-term results you are looking for.
Study Hard and Find a Mentor!
Regardless of what trading strategies you may use, becoming highly

knowledgeable in a strategy can potentially help you achieve trading
success. Ask many successful traders how they got there, and many will
discuss the importance of having a trading mentor.
Important Disclosures:
The information provided here is for general informational purposes only and should not
be considered an individualized recommendation or personalized investment advice. The
investment strategies mentioned here may not be suitable for everyone. Each investor needs to
review an investment strategy for his or her own situation before making any investment decision.
Past performance is no guarantee of future results and the opinions presented cannot be viewed
as an indicator of future performance.
Alternative investments, including Penny Stocks, are risky and may not be suitable for all investors.
Alternative investments often employ leveraging and other speculative practices that increase an
investor’s risk of loss to include complete loss of investment and can be highly illiquid and volatile.
Alternative investments may lack diversification, involve complex tax structures, and have delays
in reporting important tax information.
The information provided here is for general informational purposes only and should not
be considered an individualized recommendation or personalized investment advice. The
investment strategies mentioned here may not be suitable for everyone. Each investor needs to
review an investment strategy for his or her own situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market
conditions. Data contained herein from third-party providers is obtained from what are
considered reliable sources. However, its accuracy, completeness or reliability cannot be
guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results
you can expect to achieve.

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How to Maximize Profits Using the Robinhood Trading App

Here’s Why Robinhood Rocks for New Traders

How to Maximize Potential Profits

Swing Trading Strategy #1

Swing Trading Strategy #2

Swing Trading Strategy #3

Powerful Trading Strategies Combined with the Robinhood

Here’s Why Robinhood Rocks for New Traders

Here’s a few reasons:

• Reduced commission costs can potentially have a significant impact

And best of all: Robinhood charges ZERO commissions for traditional

How to Maximize Potential Profits

There are many methodologies available to swing trade stocks. Some

Here are 3 Powerful Swing Trading Strategies to get you started!

SWING TRADING STRATEGY #1

The Head-and-Shoulders Breakout

Here’s how it works:

To trade the pattern, you want to buy on an upside breakout of the

SWING TRADING STRATEGY #2

The Moving Average Crossover

Stop-loss placement is again a matter of risk tolerance, market volatility

The Range Breakout Strategy

Here’s How it Works:

Study Hard and Find a Mentor!

Regardless of what trading strategies you may use, becoming highly

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