This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I had entered a trade yesterday in Apple Inc. (NASDAQ: AAPL) before I wrote my post about GOOG and my thoughts on setup selection. I traded because I wanted to trade, which is a bad idea.
Anyway, here it is:
What can I say. Poor setup, poor stop, target was $120, which doesn’t really jive with the timeframe, just dumb. At least my 1R-based position size was in line with my equity risk tolerance. I guess I proved I can take a bunch of risk and get stopped out at breakeven. I see this as a revenge trade for GOOG yesterday. I did differently today what I should have done to avoid a loss yesterday. Since that’s really what I wanted to do in my heart-of-hearts, I guess this trade is a success in that regard.
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| AAPL |  |  |  |
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
June 8th, 2007 at 1:11 pm
Shorting aapl is dangerous - I’ve lucked out a few times with it, but it is the most harrowing, as Apple doesn’t seem to follow traditional stock patterns due to all the emotion put into the pricing.
The stock feels extremely volatile right now, both directions. Your call wasn’t that far off base, but the forward month view is definitely up with aapl, only debate seems to be as to how much, but certainly not for completely rational reasons. Swinging short right now is risky business.
You can always pick on WMT or PALM for shorts.
June 8th, 2007 at 1:44 pm
DM, could you elaborate on your analysis on AAPL’s forward month view? Is that based on fundamentals, sentiment, a specific price action?