Wednesday, September 9, 2015

Trading Apple

Apple is one of the few successful high tech companies that do well after the first decade of its IPO. Investors can make a lot of money buying it at its temporary bottoms and selling it at the temporary peaks.
Most of us missed buying Apple in its early years. From my memory, it always was rescued by a new market or feature: Apple computer for the graphics folks, iPod, iPad and now iPhone. The new ventures are still too early to draw a conclusion. You can make good money by doing the opposite of the institution investors, but you need follow the following suggestions. The following use buying Apple in May 2013 as an example.
·         Be patient. In May, 2013 time frame, the institution investors were dumping Apple. After a year, Apple stock surged most likely due to the same investors who dumped Apple. When you bought it, do not be tempted to sell unless a special event such as a lawsuit and market crash.
·         Buy value. In May, 2013, investors said Apple had turned from a growth stock to a value stock. Not a valid argument to me. When you buy value, you need to wait for at least 6 months for the market to realize its value.
·         When it is contrary to what the market, you need good arguments. Some stocks are down for a reason. Not this case in Apple.
I made out good in last few years on Apple. It should be far better If I followed my own recommendations.  Another reason is I do not usually short stocks.
·         I recommended AAPL (the only stocks in my book Scoring Stocks) at $55.72 (split adjusted) in April 19, 2013, the date my book Scoring Stocks was published.
·         I recommended to sell AAPL in the next article (Apple, the company). In my blog, I asked the world to dump AAPL on 2/26/15 when APPL was at $132. It was also in a SA InstaBlog that was deleted. I should have shorted AAPL.
My recent purchase of Apple is at $107.20 on 08/26.15. 

-------Trading Oil.

----My books related to the topic. Click the links for more information.
The Themes in Investing. More info on my trading experiences and the techniques behind.
Profit from 2016 Market Crash. How to prepare and why the market is risky.  
The Art of Investing. Kindle version is over 700 pages (about 3 books of average size) and it covers most topics in investing.

No comments:

Post a Comment