How To Buy Penny Stocks On Robinhood

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Penny Stocks On Robinhood Are Easy To Find If You Know How To. Here’s A Quick Guide

Most people who buy penny stocks have heard of trading platforms like Schwab or TD Ameritrade. But what if I was to tell you there is a platform that can save you a lot of money? Introducing Robinhood.

What Is Robinhood & Can I Buy Penny Stocks With It?

Robinhood is a trading platform that offers commission-free trading to investors. This fact alone makes their platform extremely enticing to new investors as well as investors with small account sizes. You can trade options, normal equities, cryptocurrencies, and even penny stocks.

Making A Robinhood Account To Buy Penny Stocks

Robinhood offers 3 different types of accounts for investors. This includes Instant, Gold, and Cash. When you create your account, it “instantly” becomes a Robinhood Instant account. This account type is a margin account that allows instant deposits and extended-hours trading.

How To Use Robinhood To Find Penny Stocks To Buy

Now that you have made your account, make sure to put funds into it. Only put in what you are willing to lose especially when it comes to finding penny stocks to buy.

Step 1- Select “Show More” Next To “Popular Collections”

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Step 2- Select The Sector(s) You Like To Trade

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Step 3- Adjust The Price Range To $0-$5

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Tips And Tricks For Trading Penny Stocks On Robinhood

Pattern Day Trader Rule

A common barrier small traders experience is not being able to trade more than 3 intraday trades a week. This is due to the Pattern Day Trader Rule which affects day traders primarily.

What Is Pattern Day Trade Rule On Robinhood?

One of the infamous barriers for day traders with smaller accounts in the pattern day trade rule. Some say it’s in place to prevent novice investors from losing all of their money. But others just feel it is something outdated. What is the definition of the pattern day trade rule?

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A Solution To PDT?

However, Robinhood has a solution to this problem. It allows traders to downgrade their account type from Instant to Cash. By doing this, the 3-trade barrier disappears. But if you downgrade your account you cannot make your account Robinhood Instant again. Here’s how to downgrade your account:

  • Step 2 — Complete all the requirements needed to downgrade (provided by Robinhood’s support team after you email them).
  • Step3 — Once everything is finalized, you will receive another email from the Robinhood support team confirming the downgrade and that it may take between 5–7 business days.

Written by

Entrepreneur, Podcaster, Marketer& Content Maniac — Not Investment Advice. This account is affiliated w/ Midam Ventures Review Disclaimer

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