AAPL: Buying the Dips!

Quote from Took2Summit:

you should trade strategies where the better you get, the more money you make, not the better you get the less money you make. if you get really good and make great entries and it never goes down enough for you to add more then you will be making less getting better
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Not completely clear on what this part means.
Could you explain it a bit more?

I think you can trade uptrends in two different ways:
1. Buy Breakouts from Consolidation Areas, and then add-on at higher prices (averaging up) before the next Pullback.
2. Buy into Pullbacks after Rallies, and add-on at lower prices (averaging down) before the next Rally.

This Thread is about choice #2, which I prefer with Options, because you get much better credits when selling Puts, if the price of the Underlying is falling.
(Or if you prefer to buy Calls, they're cheaper when the Underlying is falling.)

#1 and #2 (or a combination of them both) work fine, if the Uptrend remains in place.
But if you do either one right before the Uptrend ends, you'll lose money.
Of course the catch is, you can't know in advance when the Uptrend will end.

Is AAPL's Uptrend (since March 2009) finished now?
Right after I sold a bunch of Puts during the latest Pullback?
Pass the antacids please.....
:p
 

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well, there is a third option as well which is the option i take. when i open a position in something, i give it all my capital for that specific position. im not saying i go all in on every position, but lets say im willing to invest 10% of my portfolio to apple. i wouldnt open it with 5% and then add 5% more later. i always open a position with the entirety of how much i intend to give the position.

basically i dont ever add on because i had enough conviction to open a trade, and i already gave it all the capital i was willing to give.
 
Quote from Took2Summit:

well, there is a third option as well which is the option i take. when i open a position in something, i give it all my capital for that specific position. im not saying i go all in on every position, but lets say im willing to invest 10% of my portfolio to apple. i wouldnt open it with 5% and then add 5% more later. i always open a position with the entirety of how much i intend to give the position.

basically i dont ever add on because i had enough conviction to open a trade, and i already gave it all the capital i was willing to give.
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More decisive to be sure, and will give you the best price versus averaging up.
Averaging down gives you a better overall price, and is probably safer for building a large position, assuming the Uptrend continues after the Pullback.
:)
 
well, it's also worth noting i dont generally try and hold a position for longer then a month, but generally more like 2-3 weeks. so i dont really "build" long positions the way i trade
 
Quote from Took2Summit:

well, it's also worth noting i dont generally try and hold a position for longer then a month, but generally more like 2-3 weeks. so i dont really "build" long positions the way i trade
More...

Yes, for Swing Trading there's no need to average your price.
Most of the time you're probably better off trading the stock versus options, yes?
Or do you use both?
 
Is AAPL history ?

I just added to my Nov 600c when stock retraced to 584.50 - but stock not looking very much like it's old self. I am long only due to seasonality but not sure what election results will do to market. Relief- higher? Disappointment - lower?

Don't like when it seems like a 'sure' thing like buying AAPL - any day, any price
 
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