If your total position is on the small side (less than 200sh), then I would consider a two-year position a very acceptable risk. INO, I would use an escalating stop-loss strategy rather than a limit. Unless, of course, you see a chance to double your money
I bought on 50% margin, so I've pretty well doubled my money already. (You're right, it was looking very bleak in December, especially with E*Trade threatening to sell off my meager holding to pay for the margin loan).
By escalating stop-loss do you mean putting in a good-till-cancelled stop order and raising it as the price rises? What kind of $ spread do you give your stop orders? AAPL is so volatile that I would worry about a sharp spike down hitting the stop, followed by another spike up, which it has done several times in the last couple months. I'm personally a little leery of stops. I prefer to ride out the downswings, or average down if I have extra cash. If I believe in the stock, I have good willpower.
I'm curious to know on what kind of frequency you trade in and out of AAPL. Intra-day, days, weeks, months? Buy rumors, sell news depending on upcoming events? How many in/out trades do you make per month?
rhet0ric |
