The proper way to trade Apple...
A couple weeks ago Apple (AAPL) jumped to like $207. All time high and all that. I put a stop loss at $200 (which was a bit low, but the stock can be quite volatile because, well....people are morons and sell the best company in the market for no good reason. Stock dropped like a brick to $188, so I got out at $200 with a huge profit. When it hit $188 I put in a buy for more shares than I had before at $191. Apple is now at $203. So, while most people would be down $4 from their high point, I'm up. WAY up. And I have more shares than I did before using the same amount of cash that was already in the stock.
That's the key to trading my friends. A stock doesn't need to go endlessly higher. A stock simply has to move. It's up to you to look for the signs and get out on a drop, get more shares at the bottom of the drop and ride those toward new highs, or at least back towards the stock's average.
In other words, buy Disney at $20, ride it to $30, stop loss at $28, but again at $22, etc...stock didn't move much, but you jumped on the moves.
The more shares you have, the more profit you have with less movement.
Invest in peace...
