Apple Inc. or AAPL on NASDAQ and the stock exchanges around the world is considered by many investors to be one of the core parts of their investments. Apple shares are cheap to buy, and has a lower price-earnings ratio than the average for the industry.
While it isn’t a company you would invest in for its yield for a dividend, it is slowly getting to the position where it is. So what are the risks of trading in Apple stock, and what is the answer to the question of how to trade Apple stocks during bad times?
One of the biggest issues is the popularity of the device the company is best known for: the iPhone. This smartphone is the flagship of the company, and its failure could very well mean a huge crash in the demand for Apple shares. At present, the demand for iPhone units has been dwindling with each subsequent generation of the device. According to most analytical services, the stock at Apple Inc. right now is under a death cross. This means that investors need to watch out and prepare for declines in their share prices.
How to Make Money Trading Apple Stocks
There is a way for you to make money trading stocks in Apple Inc., even when share prices are on the decline. There is a sector of the online trading arena that is known as the binary options trade. This is a completely digital industry, in which traders invest their money in predicting the rise OR the fall of the value of stocks and other assets. Profits are earned through accurate predictions. This is a huge simplification of the field of binary trading, of course, but it is still one of the best basic descriptions for a complete newbie to the industry.
Since AAPL stock is currently in a rather tense state, investors could see the value of shares either rising or falling in the near future, with a greater chance of it falling. If you have an account with a binary options broker, you can actually invest in a trade for Apple (provided that your broker offers AAPL as one of the assets available to trade), predicting that the share price will fall further to a certain threshold in a set amount of time.
There is obviously risk involved with this type of investment, but it isn’t nearly as bad if you lose as it would be if you were to lose stock in the real stock market.
Why Trading Apple in Binary Options is Better
If the stock value of the company actually does fall below the threshold you set in the time you specified, you are granted a return of up to 90% from the broker based on the broker you chose to work with. If your prediction isn’t accurate, you will lose anywhere from 85% to 100% of your investment. The good thing in this is that you determine the amount of money you can lose when you start the trade. There is no risk of you losing everything. Even better, a single trade can be as small as $5 in size. A loss won’t be nearly as devastating.
In addition to this, you get the added bonus of being able to make money from Apple stock without having to buy a single share. You are given the chance to make a profit whether the stock rises or falls. Binary trades can last for as little as 1minute, meaning that it is a lot more fast-paced. Your profits can come almost instantaneously if you play the field right. That’s how you can make money off Apple Inc. without having to worry about falling prices in the present day.
How to Trade Apple Stocks during Bad Times
Trading Apple stocks during difficult times requires careful consideration of the risks involved.
One of the main risks is the dependence of the stock on the success of the iPhone.
As iPhone sales decline the demand for Apple shares may also decrease.
To mitigate this risk traders can consider binary options trading a digital industry where traders predict whether the value of stocks will rise or fall.
This allows traders to profit from accurate predictions even in a declining market.
Binary options trading offers flexibility in terms of investment amount and time duration with trades as small as $5 and durations as short as 1 minute.
This approach allows traders to make money from Apple stock without owning the actual shares providing opportunities for profit regardless of market conditions.
However it is important to note that binary options trading carries its own risks and traders should carefully research and choose reputable brokers.