During current uncertainty and volatile stock market one has no choice but to pay extra attention and double the homework in order to pick the right stock(s) to trade. Essentially you have to know when is the right time to enter the stock market or to open new position(s). Nope, I don’t have the magic bullet and please do not believe completely those freely available analysts’ reports that urge you to buy or sell certain stocks. The old trick still works – they asked you to buy so that they can unload, the same way they begged you to sell in order for them to buy cheap.
One’s meat could be one’s poison. Hence if your method works then it’s the best way that you should adopt in order to make money investing stocks or trading option. Be yourself and stop copying others’ method because it might not suit you or your trading behavior. You can enhance your trading style by applying certain methodology but you’ve to be comfortable with it. It would be disastrous if you try to make a complete swing in terms of trading style. You are who you are and that’s the reason why there could only be one Warren Buffett until today. Not even his own flesh, his son, could inherit half of his investing style.
Let’s pay a visit to Apple Inc. (Nasdaq: AAPL, stock) because something interesting seems to have developed. Many technical analysts are starting to make a call now on this stock. Five months was a long wait but such patience is worthwhile. I’ve been monitoring AAPL stock for the whole day hoping it would bottom to at least $155 because that was the point where it gapped-up less than five months ago. The stock could be ready for a rally and it’s time to pick up some small pieces lest you want to miss the train. But what if AAPL does not behave and decided to go the other way round? Well, in that case all hell breaks loose and the stock would probably experience a freefall to $120 a share.
Coincidently the Dow and S&P are testing the important level of 11,000 and 1,200 respectively. And need I tell you what would happen when the index touches this sensitive figure? We won’t know if Dow and S&P would rebound to the North or decided to plunge to the South but we do know that we need to make a decision at this critical moment. Miss the boat and you’ll have to wait for the next opportunity. AAPL tried to stage a mini rally to break out from the $160 range just now but the resistance seems to be too strong. At the same time the stock refused to go down to $155 level.
Why am I hoping for Apple to be whacked to the $155 a share, at least for the day? Because I need to close my position *grin* – AAPL Sept 175 Put Option. Somehow people are seeing the opportunity in Apple and willing to buy a few notches up. Heck, don’t you hate it when you can’t sell at your preferred price. It appears the market makers somehow know your target price and they’re playing mind games with you. This is absolutely frustrating. Anyhow profits are still profits so it won’t kill to take it off the table.
Other Articles That May Interest You …
- More plans for 3G iPhone from AT&T, costlier service
- Slaughter Day for Financial, Automotive and Tech stocks
- AAPL stock down, Jobs’s health problem? Just a bug
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September 5th, 2008 by financetwitter
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