aapl stock, trailing stop, wwyd?

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Busdrvr
Posts: 189
Joined: Fri Jan 29, 2016 11:56 am

aapl stock, trailing stop, wwyd?

Post by Busdrvr »

Fun money in aapl is up 21% from avg price paid. ~210/ share. Where would you set a trailing stop. My thoughts are 10% below 255. TIA..
CurlyDave
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Joined: Thu Jul 28, 2016 11:37 am

Re: aapl stock, trailing stop, wwyd?

Post by CurlyDave »

Busdrvr wrote: Sat Nov 02, 2019 9:03 pm Fun money in aapl is up 21% from avg price paid. ~210/ share. Where would you set a trailing stop. My thoughts are 10% below 255. TIA..
When I do trailing stops it is usually in the 5% to 6% range.

I have some AAPL, but my cost basis is 5/share. I am going to ride it for a while longer without any stops.
Topic Author
Busdrvr
Posts: 189
Joined: Fri Jan 29, 2016 11:56 am

Re: aapl stock, trailing stop, wwyd?

Post by Busdrvr »

5?

Thats awesome!! I'd let it ride too. 5 or 6 might be too tight IMO. Looking at recent action. FWIW ive never done a trailing stop before.
CurlyDave
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Joined: Thu Jul 28, 2016 11:37 am

Re: aapl stock, trailing stop, wwyd?

Post by CurlyDave »

Busdrvr wrote: Sat Nov 02, 2019 9:16 pm ... 5 or 6 might be too tight IMO. Looking at recent action. FWIW ive never done a trailing stop before...
If you are going to play with fun money, and I do, you need to expand your horizons on different investing strategies. The biggest thing I can recommend is to start reading Investor's Business Daily. I subscribe to the electronic version -- it seems expensive at first, but the fact is I would subscribe to some newspaper anyway, and IBD fills that role for me, so if I look at it right it might be almost free.

They recommend selling before you have a loss exceeding 7 or 8%. Now a trailing stop is a different situation than a loss in a position, but the size of a tolerable loss is roughly the same to my thinking. I am a little less tolerant of losses, so when I put a trailing stop on a position, I go slightly under this.
Topic Author
Busdrvr
Posts: 189
Joined: Fri Jan 29, 2016 11:56 am

Re: aapl stock, trailing stop, wwyd?

Post by Busdrvr »

I used to get IBD as well, plus I have read w oneills books and like some of the rules he promotes. He advises taking profits in the 20 to 25 % range as well, depending on the time it takes to achieve that gain. Just want to avoid being stopped out unnecessarily due to normal market movement.
ralph124cf
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Joined: Tue Apr 01, 2014 11:41 am

Re: aapl stock, trailing stop, wwyd?

Post by ralph124cf »

I only use trailing stops when I actually want to sell a stock, for whatever reason. I then tend to set the trailing stop pretty tight, which allows the stock to rise, but I accept that I will get stopped out with normal fluctuation.

I disagree with the person that says to take profits with a 20-25% price rise. I would never buy a stock that I hoped to make that amount from. Individual stocks are inherently risky, so only take that risk if you see a story that you believe will lead to outsize gains. Then, of course, you have to wonder why any number of other very smart people are not bidding up the price of that stock before you can get in on it. Don't invest (bet) more than you can easily afford to lose.

Ralph
sambb
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Joined: Sun Mar 10, 2013 3:31 pm

Re: aapl stock, trailing stop, wwyd?

Post by sambb »

let it ride. amazing company.
mortfree
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Joined: Mon Sep 12, 2016 7:06 pm

Re: aapl stock, trailing stop, wwyd?

Post by mortfree »

According to E*Trade I am up 450% in taxable and 130% in Roth.

Why settle for 20-25%?
illumination
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Joined: Tue Apr 02, 2019 6:13 pm

Re: aapl stock, trailing stop, wwyd?

Post by illumination »

FWIW, I had a large Apple position several years ago, I was up about $100k in gains, and I had a stop loss that got triggered. Huge tax bill. Some reports about suppliers of iPhones that turned out to be largely exaggerated.

Had I not had that stop loss, it would have been another $150k gain as it continued to soar. So $250k total. But it's hard to get too upset on what was still a home run investment.

Of all the stop losses I've ever had on individual stocks, that might be the only one that I regret. All the others were good about catching a collapsing stock.

But I bought back into Apple a few years ago, and am up about 50%. Regret not buying more.

I think Apple is still "cheap" all things considered with their current P/E ratio, cash on hand, and potential for more services (like banking) and will continue to outperform the market. If you don't "need" this money, I would let it ride.

That being said, I don't think Apple will have the sort of gains like it did over the last 15 years where you really could retire on a small position had you got in at the right time.
penumbra
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Joined: Thu Mar 29, 2007 2:42 am

Re: aapl stock, trailing stop, wwyd?

Post by penumbra »

I can echo sentiments above. Still Have a large position @ $50/share (7000 shares). Some years ago sold 6000 shares , being spooked by something I can’t even remember. Really dumb. Since then, have seen numerous retracements far exceeding 10%. With 5G coming, no chance I’d let anything scare me into selling. If there’s a nice pullback, will buy more. One mans opinion. Good luck!
StealthRabbit
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Joined: Sat Jun 13, 2009 1:25 am

Re: aapl stock, trailing stop, wwyd?

Post by StealthRabbit »

you might just pull out enough to capture some gains / lock profits, and let the remainder AAPL ride the wave.

I grabbed 40%+ gains earlier this yr from a Dec 2018 AAPL Buy point. Obviously I should have left more in the market to grow. Thus a good lesson why I am a Boglehead with 95% of the investable equity side of my portfolio.
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