Why Pros Think Robinhood Investors are ruining everything (Also my stock picks)
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Why Pros Think Robinhood Investors are ruining everything (Also my stock picks)
  So a pretty common butt of the joke from a lot of my serious investor friends are Robinhood investors a bunch of hooligans who’s took the concept of investing out of the stock market and turned it into a slot machine.      The reason is that stock PE ratios are now ridiculously high and frankly, the traditionally trained investors need to justify it with something right? Inflation is one of them, the new cold war is another,  and of course the robinhoods are a close third. FOMO after the giant COVID dip is another good excuse.   Regardless of who’s doing it, the market is flooded with gamblers and now we’re all dealing with the consequences. In this video I’m going to tell you why it’s actually a good thing that there is insane volatility and I’m going to show you how I leverage the infamous robinhood 100 list to our benefits.   If you'd like to see the youtube version, please check out my video here:    

Why so Serious?!

So why do serious investors dislike robinhood investors. It’s because the robinhood folks have a perception of being much less informed and investing purely on speculations. On top of that, it’s built on a scale of unity never seen before, and so stocks get pumped and dumped hard.    First of all, this is the nature of the free market, as long as they aren’t doing anything illegal, I believe people should be able to invest and spend their money however way they like. And the reason why I think it’s a positive is because it creates volatility in the market in all the right ways, and this actually makes the 11ish approach in investing MORE effective.   

Why We Love a Loose Poker Table

It’s the same reason why when you’re playing poker, it not only makes it a shitty game but also boring as fuck if everybody plays by the rules and no one take any chances. If that was the case then the only way you can make money is if you have insider information or you play exactly like a professional and only use good fundamentals principles. BUT if people start playing looser, suddenly you have a lot more opportunities for larger short-term gains if YOU play or invest with good fundamental principles.    In this case using financial fundamentals as a benchmark then using business level indicators to evaluate the potential for short term gains. If you trade this way, even if the business you invested in didn’t have the big gain you were expecting, you can simply hold through without the usual concerns of the business suddenly and permanently eating shit.   Another reason why I like Robinhood a lot is because they’ve created a new way for me to look at companies that I usually wouldn’t. Specifically the robinhood 100. This approach of crowdsourcing information also helps me get an idea of whether the pumper and dumpers are also looking at the stock i’m looking at or not, so that I have an idea of whether there is a chance for relatively safe quick flips. That being said, because of the volatility these days, I highly recommend that you not do options trading right now, because your are dramatically increasing your risk profile and the reward as is, is already higher than usual.   

What’s on the board right now

  With all of that in mind, let’s talk about what I’m eyeballing right now. I have 3 approaches in investing, and that is long term investments, swing trades which are 3 to 6 months, and speculation investments, of which you can think of as the moonshot territory, where the stock has really shitty financials but such interesting business value proposition and potential for upside that I just have to invest into it.   If we look at the robinhood board today, here are my picks for these 3 buckets:   For long term:
  • AMZN
  • MSFT
  • PAYPAL
  • WALMART
  • INTL
For Swing:
  • ZOOM
  • SQUARE
  • NETFLX
  • ZNGA/GLUU
  • SLACK
For Speculation:
  • Nikola
  • NIKE
  • Peloton
  For the sake of keeping this video short, I’m not going to deep dive on any of these stocks but if you have any questions about any of them please leave a comment. If you have questions about another stock please hit that subscribe button if you haven’t already and then leave me a note.    The 11ish stock investment approach is simply the combination of leveraging financial fundamentals, business value driven speculation, and good bankroll management, which is perfect for people who are interested in investing as a part time thing to help you reach your financial independence. This is how I did it and now I want to help you reach your goals.

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