How To Invest Your First $1000 (Using Robinhood)

come to think of it I think it'd be so great if I could just bust into people's homes like the kool-aid man like dear vidiians top of the morning to you sis if my friend just recently moved out here to Las Vegas from New Jersey he just recently turned 21 years old and he just texted me saying yo stud thank you I do what I can I'd love to hang out with you and ask you a few questions about Robin Hood now I'm making money on a consistent basis I'd love to put some of it away in a smart way I know you probably get this a lot but I'm totally down to pay you for your time dope new video by the way thanks Nick I do get asked that question a lot no you don't have to pay me and remember we're not guaranteed to make money but hopefully together we're gonna make some money and your money won't disappear just like that but also remember I'm not a licensed professional so that could totally happen let's just begin [Music] hi my name is Andre chick and I get a ton of messages through Instagram emails tweets Andre how do I invest my first thousand dollars doesn't matter what the dollar amount is but people are always curious how to invest X amount here also that's a complete lie nobody asks me what I have to say no one cares about my opinion and nobody emails me I'm forever alone but I just thought it would be cool to make a video showing my friend Nick as if you were to sit beside me and have no idea how to invest and which features to use and show you exactly the workaround with Robin Hood which features you would use which features you want to avoid which stocks to even consider buying based upon your personal decisions that my friend Nick is gonna make for himself and hopefully questions that you will ask for yourself to determine which type of investing strategy is best for you it's kind of like a choose your own adventure for your own money it's gonna be a lot of fun it's a very specific concrete detailed video it is not vague but you will have to sit through some laughs I'm sure because I have the attention span of a squirrel and I can't talk to anybody without laughing every other seconds so there's gonna be a lot of that but I promise the video will fulfill on its promise and there will be a ton of substance and for those people who are cynics out there who like to say that I'm paid and I'm sponsored by Robin Hood to make these videos I'm gonna be a hundred cent honest with you and say yes I do make a substantial amount of money from Robin Hood and I want you and I to be on the same page so I'm 100% transparent so let me show you exactly how much I'm paid by them let's claim a free stonk let's pick the middle one let's see what I get I managed in five dollars and 36 cents there goes my two bags of hot cheetos let's see if I can get my Top Ramen for the week for it all rides $8.25 that's not quite my frozen fruits that won't cut it but I'll economize let's see what else we get plug I hope it's not for the rear just to be clear I'm very grateful for each and every free stock that I get but I also want to show you that I'm not gonna get rich by doing this and signing people up I'm just passionate about making these videos and helping people start investing my livelihood literally depends on you smashing that like button and subscribing to the channel and if you don't do that it's totally fine it's only my life and this puppers it's okay we can't live out in the freezing cold together it's really not a big deal right yeah it's okay now that I've made you feel extra guilty let's see what my friend Nick is up to yo Nick yo we're here start here Nick let's see your phone go ahead and download the Robin Hood app okay so head to the App Store yes Robin Hood do my face I do [Laughter] face every day I passed Wi-Fi so good for downloading videos oh there's a free stock waiting for you already where's that from from you yeah dude you're so good to me I'm like Santa Claus all right get your free stock legal name so it's a slow or illegal name don't put your illegal name [Laughter] [Music] I'm not fast time I feel like that don't put me on the spot I really hope you've learned all this dude that's messed up if you give me this video gonna know everything yeah you know everything so that's the problem I give you this video you're gonna be able to get into everything and you can blow everything out okay good residential address this is where I live all right yeah all right yo Rocky yeah all right perfect social security number is this why you vitally news you get to steal my identity on camera yeah this is all just one big magic tutorial mm-hmm you know your dude listen I'm not good with numbers that's a good thing you have me yeah that is a good thing to have to go to all my screenshots cuz I have it in my screenshots you guys in case somebody finds your phone it's great how much investment experience do you have Nick no I'm just moving on are you employed it makes you seem like I'm like a secret operative or something which I am no you don't have a trust fund baby no nope why you read this pastor i've dyslexia do you really I actually do this I'm sorry no it's fine you just laugh on camera okay submit application now you gotta put in your bank credentials oh we don't look at how much with a bank account you left cries and poor nice I'm right success good age success Oh get your free stocks oh it's like a game a sec three-card Monte do they normally want you going for the middle once they put that one a little bit higher that's a good she's no horse yeah but just you don't know that a lot of people are gonna go to right so decide to go to left right but we know that that's the way people think there's no I'm gonna left ones because I know that he's gonna think it was right right so instead we go to the right let's go to the right but actually with your curveball restrictions oh sure yeah if we pick a left one I think that was Apple worth 200 no good you did good so here are the basic features so starting in the bottom left-hand corner you see the little graph button if you click that you're gonna see all of your stocks all of the ones on your watch list this is kind of like the main hub where you will see the performance if I show you on my portfolio I'll throw it up you can see like all of the stocks and what they've done over here prepare portfolios or not yet if we go to the second button the little wallet that's your cash management where all you do is literally just tap tap now let's spot 1.2 million how great wait if we go to the messages I don't ever use this feature but it just shows you some of the stocks and like when they announce dividends when they pay you I don't really use this feature too much but it's just good to know bottom right this little icon of the person that's the feature you're probably going to use the most so the first thing is transfers that's really important so this is where you can transfer to Robinhood from your bank account so if you go to transfer to Robinhood you can literally put in whatever you want and go to come from and that'll come from your bank account directly to the app yeah and if you go to transfer to your bank it's gonna transfer the money that you have here let's say you sell your free stock yeah you can transfer from the app to your bank but I don't want to do it you don't want to do that no woman you can if you want eventually eventually yeah Wow yes and it but I never pull out I always pull out oh my god schedule automatic deposit is something we're gonna set you up with right now so if you're comfortable with it we can set you up with once a month right set scheduled I could do a home $500 is that is that like a good place to start it's a great place to start as long as you can be consistent yeah yeah so 100 bucks is fine so hundred dollars a month automatic it'll go from your bank account into the app so we can review it yeah and then submit and look at that so the deposit will be initiated on the first of every month up to nine hundred dollars will be available immediately for trading that's great yeah so submit and now done and now every single month on the first NICs can get a hundred dollars from his bank account where he can invest it into what we're gonna show him in a second Robin hit has this code on the bottom of the app and it'll show you where you can literally go to something like TurboTax you can plug in the code and it'll automatically import everything and calculate all the taxes for it you know you're an adult when you get excited about things like this you're a dull thing my taxes are done automatically so so the other most important one that we're gonna use is the little loop that's in the middle so if you click on it this is where we can search for what's a loop oh you know I think ah if you know what a loser Lou here are the linking rings in the center if we go to those so here is where we look up any kind of stocks so now let's get into how to buy and sell stocks so go to the linking rings feature and we're gonna look up some stock let's say we look up something called vti which I'll tell you exactly what it means in a second so Vanguard total market ETF now if you go back and can hit the plus button so you can basically add it to your watch list so remember if we go back and I showed you the bottom left the like on so it should show up here and be watch like okay BAM it's no I'm watching it right now yeah now you're watching it it's on the bottom here vti and I think if you hold it you can actually move it all the way to the top just so it's on the top of your what are all these other ones you want to do like generator just generated automatically from Robin Hood depending on its popularity I'm guessing what was the orange and the green if you don't why me ask so green means the stock has been up okay in the last 24 hours I believe Jana market day and then red is its dip so if you click on the little price you can see you can view it either last price you can view it as a percent you can view it as your equity which means how much money you have invested in it and/or today's return which is just for the day the last trading day and/or total return like in total how much since you've started investing in it okay so now we go to something like a vti which is one of the stocks that we will be considering for Nick today this is how you buy it see this is button on the bottom yeah this is buy Wow actually before you do anything you see this at the top market order you want to click on that and you want to see this limit order it's the second option down that means that you control the price at which you want to buy the stock at versus a market order which is when you're like I want to buy this it's just gonna buy it for you at whatever the price it is but a limit orders like no I want to buy it at this specific price and then eventually once it gets that price exactly for it which is sometimes media I want exactly the price that it's at right now why don't you do that oh I guess like you could watch the video linked in the don't want the app to set our order for us okay because if we buy it at a certain price thinking that we're gonna get it up one price the market could shoot up the next day and you could buy it at a way higher value than you wanted to okay let's say for this example one seventy one point four eight that's what we want to buy that continue and we can do it either market ours which means it's just gonna wait until the next trading day if the order gets filled if it falls within the range of the price that you want to buy it at it'll buy it for you if it doesn't it'll cancel it so your money doesn't do anything it's dogs dogs so you hit a number of shares let's do one share anger so I hit one then hit review and it shows you the limit price that you want to buy that the estimated cost so hit review and then not enough buying power if you had enough buying power it will show you this little icon where you could just swipe up with your finger and it just places the order for you okay so now if you're at this point congratulations you've set yourself up it's automatic payment but now the most important part which is what do you buy right because there are literally thousands of choices in this app for what to buy so I have a few questions prepared for Nick that I want to ask him and depending on how you answer this it's gonna determine what type of investor you are I totally kind of made these up on the spot first question let's see if we match if your stock investment drops ten percent in value what do you do do you sell it hang on to it do you buy more there you just cry yourself to sleep if it drops if it drops in value let's say you invest that $100 today but then tomorrow you woke up and it was $90 oh my god what do you do I Pro just wait it out oh okay yeah we're cold that's fine all right second question is of the two which one describes you more slow and steady wins the race or 100% all-in let's grow as fast as we can I don't care how volatile the market is probably be a slow and steady because I'm not in it for like be short-term I'm in this for the long term and Estes like a slow and steady wins the great so you're not a traitor you're an investor so that's what we know you're not gonna trade stocks but you're gonna invest hopefully set it and forget it type of an ability right all right perfect I think I'm gonna dip it in you want to be a did any guy +1 for dividends at 5x5 okay I'm a happy that Nick chose to be a dividend investor like me but based on his answers I want to set him up with either a broad market S&P 500 ETF or a dividend ETF with a solid 4% dividend yield if that sounded like complete gibberish and you're like WTF sand ETF I'm about to explain it to you it's all very simple I want you to understand why you're investing and what you're investing into and once you do it's also super easy there's literally zero math involved so for example in my Robin Hood portfolio I have close to 100 companies in here an ETF will track different things some ETFs will track little companies some large companies some real estate all sorts of different things but let's say an ETF will take my portfolio and it can compress it all down into just one stock that will be priced not at two hundred four thousand dollars but just a fraction of that price which is amazing because it gives you all the diversification it reduces your risk it saves you a ton of time and you're gonna make more of a return that I probably will to be determined though what's cool about ETFs is they're kind of like newts or lizards tails you pick up a lizard the tail falls off and then it regrows I don't know if that's true but it's a rumor I always heard as a kid so I'm just gonna keep retelling that story and this is true for ETFs if one of the companies inside the ETF falls out of the criteria let's say it stops making money and it's not considered one of the top 500 companies it'll be kicked out and replaced by another company that fulfills the criteria this means you don't have to search hours and hours and find out which of those companies are profitable which ones are not making money all happens for you automatically so here are some stocks to consider buying if you chose to be a dividend investor like Nick and I and they are Vig s PhD as CH d SP yd s dy there are dozens of them to select from and it really does get overwhelming but they are pretty similar to each other but I want you to pay attention to their expense ratios which is just the price that we have to pay for the privilege of using these automated funds we don't worry it's not like a Netflix subscription service where you pay $10 a month for bad movies that you're never gonna watch it's nothing like that it's just a small management fee in the case of my favorite ETF in this list as phd its expense ratio is at 0.3% aundrea I don't know what that means 0.3% God is that a little is that a lot I just want to be able to stand up cuz my legs are just getting tired but 0.3 percent how do you compare that what does that even mean Oh point three percent means for every $100,000 you invest let's face it most people don't have a hundred grand laying around to invest you'd be paying three hundred dollars per year for using this ETF that's not a ton of money but when you have multiple hundreds of thousands of dollars laying around those couple hundred dollars do make a difference you could be investing that instead but having said that I don't want you to spend dozens of hours researching expense ratios they're not super important for the most part ETFs are pretty fair with what they charge but I wanted you to be at least aware of what expense ratio is meant and what they were just so you know so as phd has a dividend yield right now of 4.3 percent that means for every 100 dollars that Nick invests here he will get four dollars and 30 cents paid annually but paid monthly so it'll be divided by 12 you're not gonna get 4 dollars and 30 cents every month you're gonna get that every year divided by the 12 months also please note that SP HD is not just 4.3 percent per year mix 100 dollars will also grow in value year after year after year in addition to him being paid out every single month those sweet dividends so it's everything combined in total it's not just 4.3% and if you pick to be a growth guy or gal then look into vti v TI is vanguards total stock market index fund and it's the etf version of that if you were to go to Vanguard right now you would need a minimum of three thousand dollars to invest in this fund but the little frugal hack for you is that if you buy vti it's the same thing it's not three thousand dollars it's however much it is right now and between vti and SP HD you will probably make more money objectively speaking pound-for-pound vti that's not guaranteed but you will probably in the long term make a little bit more money with VTI because it's more growth oriented still though knowing that I'm going with SP HD because I love dividends and when the market crashes I feel better about staying in the stock market when I'm being paid every single month that feels good and it makes me want to stay in and invest more which is 100 percent of the time what you should always always do of course hypothetically speaking because I'm not a licensed investor and this is not advice and here's what's crazy when you're ready to retire all you have to do is sell exactly four percent of your portfolio of whatever it is you have built at retirement age to pay for all your bills and expenses and the theory behind doing it this way instead of selling all of it with millions like a boss is that when you sell only four percent your money is gonna grow faster than you're able to spend it it's like you've got infinite money now it's amazing when Nick had this realization Skyrim all over again it's like it's a glitch yeah it's like infinite Daedric are taking the gold from an npc before they pay me rise they'd lost the gold to the game in place and then it starts it from your previous say if your Skyrim do the things a good thing with a role that's you guess someone stole your sweet the role alright so if you're still skeptical the question on your mind might be Andre is all of this really that's safe what if Robin Hood goes out of business tomorrow what happens to my cash in my stocks then well this is where si PC insurance comes in and Robin Hood is si PC insured that means your money will be covered up to half a million dollars in cash and stocks of which 250 K of that can be cash and the rest could be in stocks your money will be returned to you so you don't ever want to use a brokerage that is not SI p c-- insured nor use a bank that is not FDIC insured remember stocks RSI PC banks are FDIC something to remember however your actual investment it can very well go to zero dollars and you will not get any refunds that is only for if the brokerage goes out of business not your actual investment something to keep in mind please just remember this is all my opinion I'm just some random guy on YouTube I'm not the smartest guy out there but I will try to answer any and every question you may have in this video just leave your comment down below and I will try to answer and probably smart if I set my friend Nick up with a Roth IRA before we do all of that and I do have a video tutorial on this channel which I believe in the description below this video where you can set yourself up with a Roth IRA with the m1 finance app and if you want to get started yourself I have also left links with Robin Hood where you can get a free stock and with weeble you can get two free stocks if you fund your account $100 you can get a free stock worth up to fourteen hundred dollars which is crazy that's free money right there for you to get started how amazing is that follow me on Instagram I post there pretty much not daily but from time to time and if you want to see cool card tricks video after effects tutorials for crazy things then follow my friend Nick Soriano he's incredible super nice guy one of the most talented people I've ever met love you all I will see you all on Monday and Friday oh you're all

Channel: Andrei Jikh

Views: 1,619,898

Rating: 4.9309382 out of 5

Keywords: how to invest, how to, invest, robinhood, stocks, robinhood tutorial, stock market for beginners, robinhood app, how to use robinhood, stock market, dividends, dividend, investing for beginners, andrei jikh, how to make money, how to make money online, work from home, passive income

Id: rOGKsc-kHoc

Length: 21min 13sec (1273 seconds)

Published: Fri Feb 14 2020