Someone Told Me To Invest In . . .

I get this periodically, maybe a dozen or so times a year that since I'm in the stock market, for whatever reasons, someone tells them about a good stock tip. It can be even a wonderful company that trades really well. The person will tell my friend that some news is about to come up that can send the stock's price shooting through the roof and instant millionaire they will be.

If it were so easy, I'd already be there and stayed there, and so would you, my readers.

Yes, a novice or someone who has no clue COULD make money in the market. However, keeping the money is a different story. Sometimes making it is elusive, too.

Today a friend asked me to look at AAPL. When I was trading all different stocks, I LOVE APPL. It's really a good stock to trade and steadily make money, so as long as you know how to play the up and downside.

My friend's contact told him something about a product of Apple's that will release and possibly send the stock to $250, maybe $275. He asked me to take a look and so I did. I told him I'm a technical trader and will tell him what I see from the charts.

I think I burst his bubble. AAPL is at resistance and volumes have not been looking great, at least on a weekly period. In fact, it's in bearish divergence. Could it break through and do what his contact said? Of course. Could I be wrong? Possibly. However, I wouldn't be entering a bullish trade with the information right now I see on AAPL.

Maybe I would trade up until the announcement of when they are going to release whatever product he was talking about will release and go in the direction of things. If I'm trading 2 contracts, I will allow one to trade profits before the announcement and keep my cost stop tight if it goes against me on the other one, just in case it does go more in my favor (that is, if I'm bullish).

Oops, I forgot, you can have opposite positions at the same time in my options account. In either cases, whether I'm going up, I'd keep tight stops just in case.

Whenever I hear someone tauting a stock, all I can think of is "pump & dump" and SUCKER. Let the chart tell me what to do. I'm not going to listen to hearsay.

No, it will take me quite a bit to get to millionaire status . . . slowly, steadily . . . that's okay. Sure, I'd like to be millionaire overnight, but it won't solve all my problems. And, I don't think I'm ready for it to happen overnight. Gradually, yes, as I learn to handle and manage money better on all points.
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