A student, in his early 20s, peeked at his friend’s laptop one day at school.
What he saw was green and red bars, and many numbers all over.
It was the stock chart of a Singapore company – Genting Singapore.
Little did he know that this would be the beginning of his career in the stock market.
Yes, that student was me.
The stock market is fascinating because people are buying and selling at different prices in a matter of seconds!
And no physical product exchanged hands.
If the stock I’ve bought went up in price, I’d feel invincible. I soon became greedy.
This sense of invincibility and greed brought me back to earth soon after.
As the US stock market remains red hot, the feeling of FOMO and greed is high. Thus, reminders are often necessary to help you meet your financial goals.
After a rate cut, technology stocks flew as expected. And this week’s #PowerStocks pick is a technology stock.
But before I analyze this technology stock, let’s review last week’s #PowerStocks pick: Hewlett Packard Enterprise (HPE).
Review Of Last Week’s Pick Of The Week
Hewlett Packard Enterprise (HPE) was last week’s stock pick.
It’s 1 of the most famous technology companies that provides cloud and technology solutions to enterprises, supporting the AI industry.
Having risen by 12.4% in under 2 weeks, I sensed a pullback coming.
The pullback came a day later. But this pullback was shallow. Its share price didn’t reach its support area before rising.
What are my plans for this trade?
Head over to my Telegram Channel to find out!
Speaking of Telegram, my team and I will never ask you for your hard-earned money for “investments”.
I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.
To protect you from scams, please note that my team and I WILL NEVER solicit for any investment.
A list of our official communication channels can be found here.
Why Is Swing Trading Apple (AAPL) Worth It?
Apple is the world’s 3rd largest company, only trailing Nvidia and Microsoft. The company enjoys a staggering $3.6t market capitalization.
Enjoying massive success is great. But are its shares explosive for short-term trades?
Yes! Its share price is capable of bursting upwards repeatedly, between 4% and 25.4%, 16 times in just the past 11 months!
When compared to the performance of the stock market, Apple’s shares shine like a diamond.
While the S&P 500 had climbed 11.4% in the past 3 months, the shares of Apple shot up almost 25% in the same time period!
A pullback could emerge soon, providing me with a fantastic opportunity to buy its shares and ride its next big upmove.
What’s my game plan?
Where’s a favorable price area to buy its shares at?
Continue reading to get the details.
P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time?
My team and I have worked tirelessly to help you achieve results fast.
Click on the banner below to claim your stock course for free (limited time) now!
Performance Of US Stock Market vs Apple (AAPL)
What is the 1st thing I’d want to know from this analysis?
I want to identify the trend of Apple’s share price.
Why?
Knowing the trend of its shares allows me to determine whether I’d look for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability.
Given the mighty uptrend in Apple’s share price, I’d like to identify a buying opportunity.
Great! But that’s not all.
I’ll compare the performance of the S&P 500 (maroon) against Apple’s shares (blue).
A stronger performer is more likely to continue bringing a higher return; therefore, buying the stronger performer is more likely to make my hard-earned money work harder.
While the S&P 500 had climbed 11.4% in the past 3 months, the shares of Apple shot up by almost 25% in the same time period! That’s a mighty outperformance by Apple by over 2x!
I want to buy its shares for an explosive swing trade.
But is this all to analyze?
How Explosive Is Apple (AAPL)?
No, there’s still more to analyze to boost my chances of success.
Because I only wish to ride its next powerful upmove instead of hanging on to its shares, my holding period will be as short as a few days. Hence, I want its shares to have the ability to explode upwards fast.
Have the shares of Apple been able to explode upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 16 explosive upmoves, and each of them measures between 4% and 25.4%!
What’s even more impressive?
Apple is the world’s 3rd largest company, enjoying a humongous market capitalization of $3.6t.
The share movement of such huge companies is usually more subdued, but not Apple.
Additionally, I appreciate that Apple enjoys an enormous market capitalization, as this provides an extra layer of security against manipulation. I don’t wish to lose my hard-earned money to manipulation that could be easily prevented!
Here comes the golden question: Is it time to buy the shares of Apple for an explosive swing trade?
Key Price Levels
As with many things in life, timing is key. Trading is no exception.
Buying an explosive stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you’ll doubt yourself even when a fantastic trading opportunity arises straight from under your nose!
Is it time to buy the shares of Apple for an explosive swing trade?
You can have this insight by uncovering its key price levels (also known as support and resistance zones). And that’s what I’ve done in the chart above.
Because its shares have been soaring for over a week, I’m expecting a further drop in its share price.
I’ve marked out a support area around $240. This tells us that Apple’s share price is likely to drop to around $240 before rising once again.
Once this happens, I’ll be on the lookout for a bounce before buying its shares to catch its next explosive upmove.
Here’s a pro tip: Instead of staring at your screen, consider setting a price alert on your broker’s platform to be notified so that you can spend precious time with your loved ones.
Which Instrument Should You Consider Using?
Do you ever wonder about the instrument used to trade explosive stocks?
With 3 main trading instruments available – stocks, contract-for-difference (CFD), and options, you wonder which suits you best.
Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options.
Here are the main similarities and differences:
CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1.
However, due to its unique pricing mechanism, your options price doesn’t rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop!
Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge.
Because there’s a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons.
Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital.
While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts.
You must be thinking, “What’s the beauty of trading options?”
Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.
And options don’t have to be all about Math and dry!
It can be made easy to understand through real-life analogies.
In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort.
Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process.
Are you a CFD or options trader?
I’m glad to be fluent in both.
Finally, this is for educational purposes. Please perform your due diligence.
All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.
Claim Your Free (Limited Time) Stock Course Right Now:
The stock market is full of traps laid out by professional traders.
Many new traders are often left confused by conflicting signs and signals.
Worse still, ~80% of traders lose money.
This is because trading isn’t just about skill alone.
It includes the mastery of your emotions.
But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market?
My team and I have worked tirelessly to help you achieve results fast.
Click on the banner below to claim your stock course for free (limited time) now!
