Apple Inc. (NASDAQ: AAPL) has became attention seeker from the inquisitor when it experienced a change of 1.19% Whereas, in last 21 trading days was 7.10% and moved up in last 63 trading days of 8.63%. Looking further out we can see that the stock has moved 47.73% over the year to date. Along with these its last twelve month performance is stands at 55.56% while moved 11.79% for the past six months according to Finviz reported data.
Every trader dreams of taking a small amount of capital and becoming a millionaire off of it. The reality is that it is unlikely to occur by trading a small account. While profits can accumulate and compound over time, traders with small accounts often feel pressured to use large amounts of leverage or take on excessive risk in order to build up their accounts quickly. Not realizing that professional fund managers often make less than 10-15% per year, traders with small accounts often assume they can make double, triple or even 10 times their money in a single year.
A strategy doesn’t need to win all the time to be profitable. Many traders only win 50% to 60% of their trades. The point is, they make more on their winners than they lose on their losers. Make sure that the risk on each trade is limited to a specific percentage of the account, and that entry and exit methods are clearly defined and written down.
There are times when the stock markets test your nerves. As a day trader you need to learn to keep greed, hope and fear at bay. Decisions should be governed by logic and not emotion.
One strategy is to set two stop losses:
- A physical stop-loss order placed at a certain price level that suits your risk tolerance. Essentially, this is the most money you can stand to lose.
- A mental stop-loss set at the point where your entry criteria are violated. This means that if the trade makes an unexpected turn, you’ll immediately exit your position.
Analytical Significance of Simple Moving Average
The SMA200 of the stock is at 13.66%, SMA20 is 2.58%, while SMA50 is 6.49%.
AAPL’s relative volume was 0.84. Relative volume is a great indicator to keep a close eye on, but like most indicators it works best in conjunction with other indicators and on different time frames. Higher relative volume you will have more liquidity in the stock which will tighten spreads and allow you to trade with more size without a ton of slippage.
AAPL’s overall volume in the last trading session was 23,637,484 shares.
Important Technical Indicators to keep in Focus:-
A statistical measure of the dispersion of returns (volatility) for AAPL producing salvation in Investors mouth, it has week volatility of 0.94% and for the month booked as 1.47%. Regardless of which metric you utilize, a firm understanding of the concept of volatility and how it is measured is essential to successful investing. A stock that maintains a relatively stable price has low volatility. When investing in a volatile security, the risk of success is increased just as much as the risk of failure. Apple Inc.’s beta is 1.21 whilst the stock has an average true range (ATR) of 2.69. Other technical indicators are worth considering in assessing the prospects for EQT. RSI for instance is currently at 59.83.
It is common practice for investors to use the price-to-earnings ratio (P/E ratio or price multiple) to determine if a company’s stock price is over or undervalued. Companies with a high P/E ratio are typically growth stocks. However, their relatively high multiples do not necessarily mean their stocks are overpriced and not good buys for the long term. The PEG ratio shows us that, when compare to the beer company, the always-popular tech company doesn’t have the growth rate to justify its higher P/E, and its stock price appears overvalued. Apple Inc.’s currently has a PEG ratio of 1.61 where as its P/E ratio is 18.62. The company P/S (price to Sales) ratio is 3.86, P/B (price to Book) ratio is 6.57, while its P/C (price to Cash) ratio stands at 11.92.
Should You Go With High Insider Ownership?
Many value investors look for stocks with a high percent of insider ownership, under the theory that when management are shareholders, they will act in its own self interest, and create shareholder value in the long-term. This aligns the interests of shareholders with management, thus benefiting everyone. While this sounds great in theory, high insider ownership can actually lead to the opposite result, a management team that is unaccountable because they can keep their jobs under almost any circumstance. Currently Apple Inc. (NASDAQ:AAPL)’s shares owned by insiders are 0.08%, whereas shares owned by institutional owners are 62.50%.