Trading Apple on Reality Pro VR Headset Launch

January 10, 2023 09:52

In 2022, Apple lost $846.34 billion in market cap due to the global stock market sell-off and issues in production from its main China factory due to Covid-19 restrictions.  

However, investors are now looking ahead at the year with attention turning to the highly anticipated launch of Apple’s ‘Reality Pro’ mixed reality headset.  

Learn more about Apple’s new upcoming product below and how to trade the stock.

Stock: Apple Inc
Symbol for Invest.MT5 Account: AAPL
Date of Idea: 10 Jan 2023
Time Line: 1 - 6 months
Entry Level: $134.00
Target Level: $174.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • 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. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Apple’s Anticipated ‘Reality Pro’ Headset

In a report by Bloomberg, Apple is finally set to launch its first mixed-reality headset after seven years of development. The headset is due to be launched before the annual Worldwide Developers Conference in June and be available for purchase in the autumn. 

The new headset is set to run on a new operating system called xrOS. While, Apple products already allow other companies and developers to use mixed, virtual and augmented reality devices such as glasses, the Reality Pro is set to compete with Mark Zuckerberg’s Meta products. 

However, one of the differences between Meta’s Quest virtual reality product is that Apple’s Reality Pro headset provides a mixed reality environment rather than a complete virtual reality environment.  

Investors typically get very excited around new Apple products as the company has one of the largest ready-to-go databases of buyers. However, some investors may be concerned that so much focus has gone into the Reality Pro that only minor updates will be made this year on other Apple products such as its iPads, watches and MacBooks.  

Another concern to take into consideration is the report from an Apple analyst regarding issues in software development and mechanical problems. These have delayed the shipment of the headset to late 2023.   

It is also unclear how the growing number of Covid infections in China will impact Apple’s manufacturing output which has been one cause of the significant decline in its stock price at the end of last year.

Apple Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Apple stock forecast in the past 3 months, there are currently 22 buy, 5 hold and 0 sell ratings on the stock. The highest price level for a Apple stock forecast is $210.00 with the lowest price target at $125.00. 

The average price target for a Apple stock forecast is $174.71.

Source: TipRanks, 10 Jan 2023

 

An Example Trading Idea for the Apple Stock Price

An example trading idea for the Apple share price could be as follows:  

  • Buy the stock on a break above $134.00 to allow for current market volatility. 
  • Target the average analyst price target around $174.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Apple shares:  
    • If target is reached = $400.00 potential profit ($174.00 - $134.00 *10 shares).

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering that Apple ended down around 30% last year.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Apple stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall. 

How to Buy Apple Stock in 4 Steps  

With Admirals, you can buy shares in companies like Apple with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the Trader’s Room.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.   
  4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level. 
Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance.

 

Click on the banner below to trade Apple stock 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 can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares 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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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.