It Takes Money To Make Money Webull Example

I’m writing up a comprehensive Webull review as part of my ongoing series of brokerage app reviews where I do comparisons like Webull vs Robinhood, look at is Webull legit, and my personal finance apps reviews.

My hands-on Webull review includes actually depositing money and using the Webull app to buy and sell stocks, cryptos, and options. I feel like a real review of Webull or any other finance app requires putting your money where your mouth is, so to speak. Of course, for the purpose of writing a personal finance review of Webull, I’m not going to drop thousands of dollars into a new app I have no experience with just to try it out. My freelance financial writing business does pretty well, but maybe not THAT well.

This article is not a recommendation to buy or sell any securities mentioned below.

Some of the links below are referral links and may result in compensation to myself or Finance Gourmet.

Invest In Webull Make Money Percentages

Alright some context before we take a look at the screenshot. First, Webull gave me a single share of stock free in Genworth Financial for signing up for an account. In other words, just for filling out all of the information. Theoretically, there was some sort of random set of stocks I could get for free, including those that are much more valuable. When I got my free stock share in Genworth, it was worth $3.95.

If you want to get free stocks for signing up for Webull use my link and we’ll both get whatever the current promo offer is.

If you look at the screenshot of Webull trading screen, you will see Genworth (GNW) at the bottom in the first column. At the time I took this, it was trading at $4.348 per share as you can see in the fourth column under Last/Avg Price.

In the second column, you will see that the current value of that position is $4.35 under the Mkt Value/Qty column. Below is the number one. That is how many shares I own. As I said, they gave me one share for free when I signed up.

The third column is where I wanted to focus in this article. The header says Open P&L. That stands for the Profit or Loss since I opened the position, or another way of thinking about it is my total profit for loss for this asset. (On the app you can scroll to the right and see Day P&L, for example, which would be the profit or loss for this position since the beginning of the trading day.)

webull review assets profit loss

Make Money Investing with Webull Takes Money Invested with Webull

So, the point of this short (too late) blurb on Webull investing is more about the idea that it takes money to make money, or just as accurately, that compound interest takes a long time to work.

You see, because I was trying out an unknown app, I kept the amount of money I invested low. If it turned out that Webull is a scam, or just a bad trading app, I didn’t want to lose a bunch of money or cause myself a bunch of stress. So, I only put $100 into Webull with the idea that if I lost everything, that was just the cost of doing business as a financial writer to be able to write a real, accurate, hands-on review of Webull.

Remember that Genworth share of stock that I got for free?

Take a look. I’ve gotten a 10% return on it in just under 60 days. Big money, right?

Well, if you look at the value, you’ll see $4.35. Sure enough, that is 10% more than the $3.95 I got the stock at, but I’m not only not rich, I couldn’t even get a McDonald’s value meal for that amount of money.

What if they gave me 100 shares?

That would have been $395 with a 10% return for a total of $435. Better, but still not Ferrari money.

How about an initial investment of $3,950?

That turns into $4,350 with a 10% return. (This is one of the reasons any legitimate financial planner or expert kind of hems and haws when you ask something like, “Where should I invest $3,000?”)

You can look at the rest of the screen to see a similar effect.

There is the one share of Kyndryl I bought when Kyndryl split off from IBM. I paid $15.71 for Kyndryl stock on that day. In this Webull screenshot it is trading at $18.09, a 15.15% gain. If I bought 10,000 shares of Kyndryl, things might be a bit more interesting. Of course, that would mean starting by investing $157,710.

My Webull Investments

Like I said, I’m working on a legit Webull review, but just in case you are curious about the rest of my Webull investments showing on that image here is the deal.

The one share of ADT stock was the one I received for free when I funded the account. You get one share for signing up, just filling out the information. You get another share for actually putting money into the account. I could have gotten something worth up to $300, I think it said. Alas, only a $8.86 share for me, now worth $8.90.

Webull Crypto Investing

The Shiba Inu position is interesting. I posted a blurb somewhere about how I was working on the Webull reviews with a link to a promo offer that gave both me, and whoever signed up with my link, $5 worth of Shiba Inu coin. Somebody signed up (they don’t tell me who, confidentiality and all that) and I got the $5 of Shiba. If you want $5 worth of crypto use this link and sign up for a Webull account and we both get $5 of crypto.

I received the free $5 worth of SHIBUSD on 11/24/2021. I bought another $25 of Shiba Inu on 1/04/2022 to test adding to a crypto position. The total position is now worth $28.42 because the price of Shiba is down from when I got my free $5 of Shiba Inu, but it is up since I bought the $25 of Shiba. So, overall, I’m up 13.67%. Again, that just sets me up at $28.42 despite getting $5 free.

The Ethereum holding was another test of just buying crypto. As you can see, my timing wasn’t so good. I bought $25 worth of ETHUSD and I’m down 11.16% on my Ethereum trade. Fortunately, small investments also make small losses. I’m down just $2.79 from my initial $25 investment despite the ugly looking percentage.

I sold the Dodgecoin and bitcoin positions before I took this screenshot to test selling crypto on Webull, but they looked mostly the same despite only owning a comically tiny fraction of a bitcoin for $20.

Most recently, I bought $20 of REN. I don’t know anything about it, but I know a guy named Ren and I really like him, so I figured this would be a good test of a smaller, lesser-known crypto when I couldn’t buy XRP. You can’t buy XRP on Webull right now. I’m not sure where you can buy XRP, but for such a small amount, it didn’t really matter what I bought. The point was to try out the Webull trading system.

Crypto Buying Power Webull

Your Webull crypto buying power is equal to your cash available to withdraw. That is to be expected, although there might be another financial brokerage app out there that would let you buy more crypto than cash, like buying crypto on margin.

Webull Value of Investments

Long story made short (too late) my current balance at Webull bounces around between $115 and $125, which includes $17.81 of free money in the form of free shares of stock. Considering my relatively heavy losses on my Ethereum position, that’s not all bad, and so far, the Webull app is legit for a free small trading account.

Anyway, happy trading.

About the Author

By Brian Nelson Brian is a former Certified Financial Planner and financial advisor. He writes for the Finance Gourmet and other financial publications. Neither Brian, nor the Finance Gourmet, hold themselves out to be financial advisors. The material provided on this website is for informational use only and is not intended as financial or investment advice. This article is not a recommendation to buy or sell any securities mentioned. At the time of publication, Mr. Nelson owned all of the securities mentioned above, however, that may change at any time without notice. ArcticLlama, LLC, FinanceGourmet.com, and Brian Nelson, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.

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