Apple Inc. Message Board

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Technology Stocks : Apple Inc.

AAPL 278.79

-0.7%

Dec 5 9:30 AM EST

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To: MGV who wrote (169830)	5/28/2014 12:09:59 AM
From: Since1998	4 Recommendations of 213173

The "amateur" shorts on this board are insignificant when it comes to moving the share price of Apple. For that matter, the longs here are insignificant too. Institutional shareholders, hedge funds and Apple itself dwarf the rest of us all in terms of volume and position size. The typical mainstream media article trashing or praising Apple gets vastly more attention and has far more influence than any message board post. I've been an Apple shareholder and AAPL message board poster since 1998. We post to share ideas and information and for a sense of community. Anyone who thinks they're impacting the stock price with their message board posts is naive. To clarify: I wasn't saying Apple was driven down from $702 to $390 solely because of margin calls. I was saying large marginated positions in Apple were the biggest factor for the last part of the decline. Apple was an amazing revenue and earnings growth story on the way up to $700. Growth stalled and margins shrank over the next year, which was the biggest fundamental reason that the stock turned back down. Many retail investors who'd made small fortunes buying Apple on margin on the way up then lost it all on the way back down. Wall Street has many ways to take advantage of greedy retail investors. There were enough smaller investors buying Apple on margin that many funds shorting Apple above $600 were able to easily take profits below $400 thanks to the forced selling. Likewise plenty of investors made small fortunes buying Apple calls or selling puts on the way up, but then lost most or all of it buying calls or selling puts on the way down. No trading strategy works all the time. When too many small investors start utilizing a strategy or technical signal you can be sure that it will soon backfire. The market gives and then it takes away if you rely on high risk bets.

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