Americans staying at home during the coronavirus pandemic are picking up skills to keep them busy, from baking banana bread to practicing viral TikTok dances — and learning how to trade.
Robinhood’s Quarantine Surge: Many young traders are turning to millennial-friendly services to learn about the markets and begin their investing journey. Consequently, Robinhood’s popularity has surged throughout the last year.
The unicorn out of northern California has been on a tear, adding over 3 million accounts in 2020 as of early May. These results are the fruits of a $280-million Series F round, which put the company at an $8.3-billion post-funding validation.
“Robinhood has made the financial markets accessible to the masses, and in turn, revolutionized the decades-old brokerage industry,” says Andrew Reed in a Robinhood blog post. Reed is a Sequoia Capital partner working with the company to secure funding.
Young traders are finding Barstool Sports founder and president Dave Portnoy to be a mixed outlet of comic relief and inspiration. Portnoy frequently uploads his trading endeavors to his social media accounts under the name “Davey Day Trader Global,” where his millions of followers can see him rage, gloat and sulk at his daily picks.
By comparing day trading to gambling, Portnoy inspires his platform’s audience, largely composed of betting sports fans and risk-takers, to faithfully follow his lead.
Trading In A Volatile Market: Day trading can be a risky business for newbies looking to quickly cash out. But it’s also an opportunity for traders to take advantage of the volatility of the stock market to pick brand-name essentials that will never go away.
Kroger is still the largest supermarket chain by revenue, and shares are up 32% within the last year.
Companies that pay large dividends can also be enticing for new traders to target, especially as a way to help generate a form of reliable income. Weyerhaeuser Co. (NYSE: WY), the largest timberland real estate investment trust in the world, could be worth a look due to its tenacity and high dividend yield (5.73%).
Wood, while stuck in a volatile commodity market, is practically essential to the housing market.
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