AAPL: Buying the Dips!

that's kind of my point if and when apple turns it taking the market with it. i wanted to short it when it bounced off the 651 and went into the 660's last week. i was not on drugs last week so i just said it to myself of course and smiled.

Quote from Daring:



If the market is going to reverse, everyone is going down, not just AAPL. but bad and good companies.
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I would say "more money has been lost predicting a bottom".

most people buy dips, they have illusion: lowered price is safer.

they buy 650, thought that is lower than 705, and added again at 631, 631< 650. if it printed 600, they will buy again, since 600<631. if it prints 530, they will "wow", cheap, they buy again, if it lowers to 430, they will crowd in again ...

the basic principle in trading is buy low and sell high, it is true.

but you need stand at the right angle, if you bought at 430, now it is 630, perfectly can say: 630 is high (630>430), sell. in bottom picking example, you bought it at 650, now you are at 630, you buy high, not buy low, totally against the buy low/sell high princples.


did you notice unemployment data is good, but the market is dropping? a pretty good divergence example. those guys who rode appl from 50ish years ago till now are leaving. there is no party which can last forever.

of course noone knows that is a top, untill years or months, you will realize that is a top. but it is too late.



Quote from hoop121:

"more money has been lost predicting a bear market than has been lost enduring one."
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Quote from Daal:

Hey OP, do you have an exit strategy or you will just keeping buying more as it goes down?
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AAPL is by far my largest position, so I'm happy just watching for now.
My concern is the 600 line.
When convinced AAPL will stay above it, I might add a bit more to the pile.
But if AAPL falls through 600, I will be making some "adjustments".
:cool:
 

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I put in a rule a few years ago that saved me from the last bear market: buy only stocks at new highs. I've modified that as my discipline improved, but buying the lows gets old fast.
 
They say odds are in your favor not calling reversals.. but whatever you pick your saying there is or isn't one coming at some time frame. . This is a shake out ... such a pre earnings pre iPhone 5 run up... if there wasn't a good correction I really would be worried.. who knows though all I've been good at is calling a reversal that doesn't happen in my time frame
 
AAPL is one hell of a company, and in this case, the lower it goes the better the value, problem is how long you can keep buying and adding without blowing up.

In the end is all about risk management.

If I had deep pockets I would buy millions of AAPL below 600 for the Xmas rally.
 
Umm you can get that kinda leverage...deep otm broken wing fly... buy far enough out such that your only paying cents with a potential 15-25 dollar pay out... sick leverage... haha..
 
623.55 is still the pullback low. We'll see if it holds.
Will AAPL go sideways for a while in the 620-640 zone?
Or will it rally up to 670?
Or perhaps it will crash down to 580!
Next week should be interesting....
:)
 

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