r/1kRobinhoodProject

196 archived posts · Mar 2015 – Jun 2018

Verified Public Trades via Robinhood

One of the things that tends to destroy the small accounts of new traders is commission. With Robinhood there is no commission. As a full time equities trader, I've decided to publicly share the growth (or destruction) of a small $1,000 auxiliary account I opened on 3/1/15 with Robinhood, to prove what is/is not possible when commissions are not a factor. The goal is to either grow the account to $10,000, or lose it all. Trades will be opportunistic only, and there is no time restriction.

Created Mar 8, 2015 · restricted

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196Archived posts

QUICK NOTE:

I recommend organizing posts based on newest first since that way trades will be in order!

ANOTHER QUICK NOTE:

If you are brand new to trading I recommend you first check out my completely free beginner's guide, Fundamentals of Active Trading to give yourself a basic understanding of how the market works and how I trade it.

Background:

As a full time, self-employed equities trader and part time mentor for newer traders, I've seen many new traders attempt to start trading with a small account of $500 or $1000. Usually, these traders are unable to overcome the cost of commissions and end up burning their accounts away with fees, even if they are good traders. With Robinhood, the new commission-free broker backed by Google Ventures and other venture capitalists, there is no commission. There are tradeoffs to this but I do not believe they are as significant as having to pay a commission on every trade with a small account. So, between 2/23/15 and 3/1/2015 I opened and funded a $1,000 Robinhood account to experiment with. The goal is to either grow it to $10,000 or lose it all with the underlying purpose being to prove how much commissions really do affect trading results on accounts of $1,000 or less. Trades will be opportunistic only, as implementing a time limit or restrictions on trade price/volume/etc tends to force bad trades.

Purpose of this Subreddit:

Submissions are currently restricted to prevent clutter. I will post my trades and proof of them here publicly. If there turns out to be a need to allow others to submit I will modify the subreddit later. For now, the only purpose of it is to provide a public forum for sharing my trades. Please understand this account is 100% expendable for me and is considered a sunk cost, so please do not follow these trades. I won't go into much (if any) detail about why I'm making them or any of that. Of course, I anticipate that I'll be able to grow this account, but there is a possibility that I could lose everything and I'm ok with that. The idea is more to see what's possible when commissions are not a factor (in terms of growth rate, time, probabilities, etc), since when commissions are involved with a very small account like this, all trades start with an initial loss much greater than just the spread (depending on the fees a $1,000 trade could start out anywhere from 1.4% to 2.0% in the hole, requiring a minimum 1.4-2.0% gain just to break even). That factor is eliminated with Robinhood. Therefore I'll be trading somewhat differently in this account than I would in an account where commissions are charged. I don't know what to expect, but I suspect that this account will be able to experience significantly faster growth due to the lack of commission costs. Time will tell!

If you have any questions or suggestions on how to improve the project or this subreddit (it's the first one I've ever made) please feel free to PM me (/u/ghostofgbt), follow me on Twitter or visit my website at www.greenbartrading.com!

Regards,

Chris

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