I signed up for trendy investing app Robinhood at 22, but after talking to a Wall Street veteran I'm switching my investing strategy (2024)

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• After using Robinhood for several years, I realized that the trendy app's platform based on active trading isn't the best for my long-term, buy-and-hold investment strategy.
• I liked the control I had over what I bought with Robinhood, but ultimately ended up spending more time managing my weekly deposits into my account than I needed to.
• An algorithm-based, automatic investing service, like the accounts offered by Betterment, Wealthfront, or Ellevest would be a better choice for hands-off, long-term investing.
• See Business Insider's picks for the best investing apps »

I've been using investing app Robinhood since I was about 22. Fresh out of college and hungry for any type of long term-growth I could start, I opened an account with the buzzy app and started putting money into it whenever I could, and picking stocks.

At the time, I didn't know there were any other ways. Stock picking was more or less how I learned to invest. During the bull market that just ended, I liked it. I loved seeing the value of my account rise, and I felt more and more sure of my investing prowess every time I had a big green number on my home page. Most of all, I loved that the active trading on this app made me feel in control.

Using Robinhood became one of my Friday night rituals. About a year ago, I set up an automatic deposit of $25 per week into my brokerage account from my checking account, and then I'd spend a few minutes every week picking out something to buy, checking my balance, and researching. I loved the hands-on aspect.

But then came March 2020.

The stock market saw its biggest daily drop since the 1980s. During my all-too-frequent check-ins, I was feeling a little bit demoralized — my account value was down quite a bit. After consecutive weeks of this, it all felt a little bit out of control, but I knew selling out wasn't an option. While I wanted to just walk away from it for a while, I wanted just as much to keep buying steadily every week while prices were down.

Advice from a former Wall Streeter changed my mind

But then, I had a conversation that made me re-think my own strategy. Interviewing ex-Wall Street CEO and Ellevest founder Sallie Krawcheck for a story on the stock market drop, we talked about the worst advice she's heard during the market drop. One of the things she brought up was active trading.

"The worst advice is telling people to do something," she said. "Whether [the advice] is to try to buy in now, or buy small cap stocks because they should come out of this better, or buy shares of X, Y, Z company. This type of active management ... even the professional active traders and active portfolio managers don't do it well all the time."

Krawcheck isn't the only expert who says active trading probably isn't for everyday investors like me. Even investing legend Warren Buffett recommends a long-term investing strategy using index funds.

I couldn't help but think: Am I misleading myself to think that I'm an exception to this advice? I'm no Wall Street expert — just a 20-something with a brokerage account, wanting to build long-term wealth by starting young.

I realized that what I really wanted wasn't active trading. I wanted my money invested without the pressure of choosing what it would be invested in myself. I wanted to stop checking my account once a week. I wanted a long term, buy and hold investing strategy. I wanted away from the very model that I'd once loved, because I realized that the control I felt was an illusion all along.

It was easy to change my investing strategy

On my couch the Friday after my conversation with Krawcheck, I realized that the kind of investing experience I want does exist. There are banking and investing apps that don't involve active trading and stock picking, so I figured, why not switch? I put my weekly $25 into yet another ETF, left the app, and went to browse other investing app options.

I only had a few stipulations on my new account: I wanted something that I could have on my phone and that won't require much management. Banking services Wealthfront,Betterment, and Ellevest all offer automatic investing with low annual fees.

I built a good portfolio with Robinhood, and I still think it's a great choice for anyone who wants to actively manage their portfolio and avoid fees. Chances are, I'll still keep that account. But, I'm going to switch my weekly deposits for something much easier to manage.

I'm ready for a more laissez-faire approach. Active trading may sound appealing, but right now, it's simply not the right move for me. I'm ready to hand off my investing to an algorithm that's much smarter than I am, and focus my attention elsewhere on Friday nights.

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