Trading Apple Ahead of New iPhone Launch
On the 7 September, Apple is hosting a launch event at which it is widely expected they will announce the next generation of iPhones, a September tradition they have followed for the last decade.
In a year which has thus far been marked by uncertainty in the financial markets, Apple has reported earnings which have beaten expectations for two consecutive quarters, despite ongoing supply chain issues.
These positive results have no doubt contributed to the tech giant outperforming the wider S&P 500 so far this year. But what does the rest of the year and beyond look like for Apple? Learn how to trade Apple shares below!
|Symbol for Invest.MT5 Account:||AAPL|
|Date of Idea:||30 August 2022|
|Time Line:||6 - 12 months|
|Position Size for Invest.MT5 Account:||Max 5%|
- The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Therefore, you should never invest more than you can afford. Start small to understand your own risk tolerance levels or practice on a demo account first to build up your knowledge before investing.
Why Buy Apple Stock?
Last week, we wrote about a breed of technology stocks which have achieved such success that they have developed defensive qualities, qualities which could enable them to escape an economic downturn relatively unscathed. In that piece we spoke about Google, but a company which shares many of the same robust characteristics is Apple.
Apple is the most valuable company in the world, commanding a loyal following of consumers who eagerly snap up the company’s latest gadgets. Their iPhone and iPad products, which debuted over 15 and 12 years ago respectively, completely revolutionised their respective markets and still retain a significant competitive edge over their rivals to this day.
The long and short of it is that people love Apple products, and the difficulties which the global economy currently faces is unlikely to change this fact. This has been evident in both of Apple’s quarterly earnings this year, with both sets of results beating analyst expectations.
Next week, Apple are expected to unveil the latest generation of iPhone and it would not be surprising to see this spur a growth in sales in the final months of the year. In fact, since 2009, the final quarter of the year has been Apple’s strongest in terms of revenue, as consumers scramble to buy Apple gadgets for the holiday season.
This upcoming iPhone announcement coupled with a likely surge in sales over the holidays could see Apple’s share price respond positively in the coming months. However, traders must also consider the headwinds currently facing the global economy and bear in mind that the stock market is likely to remain volatile in the near future.
Apple Stock Forecast - What Do the Analysts Say?
According to analysts polled by TipRanks for an Apple stock forecast in the past 3 months, there are currently 22 buy, 4 holds and 1 sell ratings on the stock. The highest price level for an Apple stock forecast is $220 with the lowest price target at $136.
The average price target for an Apple price forecast is $183.12 which represents more than 13% upside from current levels, at the time of writing.
An Example Trading Idea for the Apple Share Price
An example trading idea for the Apple share price could be as follows:
- Buy the stock at $165 to allow for current market volatility.
- Target just below the average analyst price target at $183.
- Keep your risk small at a maximum of 5% of your total account.
- Timeline = 6 - 12 months
- If you buy 10 Apple shares:
- If target is reached = $180 potential profit ($183 - $165 *10 shares).
It’s wise to remember that the share price is unlikely to go up in a straight line and it may even go down before it rises, if it rises at all. This is especially true currently, given the recent volatility in the global stock markets.
Therefore, it is crucial to exercise good risk management, which is one of the most important aspects of trading successfully. You should always know how much you could potentially lose on a trade and the precise risks involved.
Another factor to consider is the commission, which can eat into your profits. With the Admirals Invest.MT5 account you can buy US stocks from $0.02 per share; however, there is a minimum transaction fee of $1. So, the example trading idea above would have resulted in an overall commission of just $1!
How to Buy Apple Shares in 4 Steps
With Admirals, you can buy shares in Apple and over 4,300 other listed companies! In order to buy Apple shares, follow these steps:
- Open an Invest.MT5 account to access the Trader’s Room
- Click Invest next to your account in order to open the MetaTrader WebTrader
- Search for Apple shares at the bottom of the Market Watch window and drag the symbol onto the chart
- Click New Order at the top of the screen and enter the number of Apple shares you want to buy
Click on the banner below to buy Apple shares today! ▼▼▼
Do You See the Apple Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Apple’s share price will move lower, then you could choose to go short using CFDs (Contracts for Difference). The Trade.MT5 and Trade.MT4 accounts from Admirals both allow you to speculate on the price direction of a wide variety of stocks using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this 'How to Trade CFDs' article.
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