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Apple Stock Trading: How To Trade Apple Stocks (AAPL) In 2022

Apple (AAPL) was founded on the 1st of April 1976 by three college dropouts who were soon to become tech gurus: Steve Jobs, Steve Wozniak, and Ronald Wayne. 

 

From humble beginnings, Apple has become an international tech powerhouse. In August 2018, Apple became the first publicly traded company in the world to hit $1 trillion. 

 

In this guide, we’ll take a look at the performance of Apple stock over the years, how to exploit it, and some tips from popular trading strategies for Apple stock. 

How Well Does Apple Stock Perform?

apple stock history

As you can see in the Apple stock graph above, since 2018 Apple stock has been on an impressive bull run. This has attracted a large number of investors looking to make a sizable profit from trading apple stock by accepting the risk involvement. You should bear in mind that no type of stock or trading strategy can guarantee a profit and there is an element of risk involved in trading any type of stock. 

 

It’s no exaggeration to say that Apple has skyrocketed to become the most valued company by market capitalization and revenue over the past five years. 

 

As Apple expands its product range and branches out into new countries and territories around the world, the company’s stock is attracting more investors. Apple products include the iPhone, iPad, iMac, MacBook, and their proprietary software, iOS.

 

At the time of writing, the company is valued highly with a market cap of around $2.4 trillion, making it the most valuable publicly traded company in the world. Therefore, whether you are new to trading or a seasoned trader, Apple is worth considering as a  potential asset for your trading portfolio.

 

Apple Stocks are traded on the NASDAQ stock exchange with the ticker sign AAPL. The company makes up the top 4 or major market indices like S&P 500, Dow Jones, and the most popular NASDAQ-100.

 

You can trade Apple stocks here on the TradeEU platform. We will explain more about trading Apple stocks CFDs later in this guide.

 

A Brief History of Apple (AAPL) Stock

 

Apple started life as Apple Computer, Inc. back on January 3, 1977. Their debut commercial computer was called the Apple II and it revolutionized how we look at computers today by introducing color graphics for the first time. 

 

Apple first went public on December 12, 1980, at $22 per share, raising more capital than any other company going public at that time. Investors were keen to get on board as Apple was seen as a revolutionary company, creating new systems with innovative features.

 

Apple’s stock price has risen since then, moving from $22 per share to $97 by January 2007, the month that saw the release of the first iPhone.

 

In more recent years, Apple stocks have continued to steadily increase as the company’s products have grown in popularity and reached wider markets.

 

Apple stock hit an all-time high in January 2022, with a closing price of $180.96 per share, bouncing back after being marginally affected by the coronavirus pandemic. 

 

Why You Should Consider the Apple (AAPL) Stock

The main reason that Apple attracts high numbers of traders and investors  is due to consistent good performance over the years, even during tough economic times, as the yearly graphs indicate.

 

Apple makes high-quality consumer products that are highly prized and sought after around the world. The company prioritizes technological innovation, as well as user-friendliness, which means that it is expected to continue going from strength to strength in our complex modern digital age.

 

Apple has grown to become a large company with a lot of liquidity, which sets it apart from other companies. In other words, millions of traders and investors around the world buy and sell AAPL stocks every day.

 

Traders can capitalize on the short-term volatility of Apple stocks by day trading or holding on to the stock for longer-term gains, depending on the strategy they decide to apply. You can find out more about commonly used Apple stock trading strategies that you may want to apply later on in this guide.

 

However, it must be said that trading APPL is not without risk. Trading any type of stock comes with inherent risk and reward. Doing thorough research and technical analysis of AAPL stock, then applying a well-thought-out strategy can maximize your potential for gain and reduce any potential losses.

Things To Do Before You Start Trading Apple Stock 

You need to put in some groundwork before trading Apple stock. It’s never a good idea to simply jump in and start trading any type of stock without first doing some research and analysis. 

 

The most important thing to do before trading Apple stock is to keep an eye on market trends. Apple stock, as with most stocks and shares, is prone to price changes and swings that occur due to broader market shifts. There are also times when an individual stock may move in the opposite direction to that of the overall market. 

 

For instance, during a recession, it may occur that companies providing cheap consumer goods such as grocery firms may outperform the market, whereas stocks in expensive luxury goods may suffer.

 

Here are a few tips on how investors prepare to trade Apple stock.

Look Out for Quarterly Apple Earnings Reports

Traders should keep a close eye on Apple’s earnings reports each quarter as these indicate upcoming trends. The reports are typically released towards the end of January, April, July, and October each year.  On the day the earnings report is released, Apple stocks tend to be more volatile, which may provide trading opportunities for day traders.

Perform A Technical Analysis

The price charts can provide a key focus to improve your entry point in a trade. By reviewing the price charts carefully and carrying out technical analysis, you can identify current and expected trends, and then proceed accordingly. 

 

In order to properly analyze the price chart, you might look out for key information such as the support and resistance levels. Support and resistance levels are used to help identify trends and act as markers or “pegs” to help support trading decisions. 

 

The support level can be thought of as a “low peg” and the resistance level as a “high peg”. 

 

If the Apple stock drops below the support level (the low peg), then it is considered to be entering a resistance mode and there is a probability of a downward trend which may indicate that it is a good time to sell.

 

If the Apple stock rises above the resistance level (the high peg) it may indicate the start of an upward trend, which indicates that it is possibly a good time to buy.

 

Traders set the support and resistance levels by applying analysis of historical price data, peak and trough analysis, and technical indicators (also known as trendlines).

 

Another important piece of information to pay attention to is the RSI, which stands for Relative Strength Index. The RSI indicator is used to identify overbought and oversold conditions, which helps you with possible trading decisions. In other words, it can indicate whether it is possible a good time to buy or sell your stocks. If the stock appears to be overbought, it may be the right time for some investors to sell. Vice versa, if the stock is oversold, it may be a good time for some investors to buy.

Consider the Apple’s Buyback Program

Apple’s buyback program is something traders may want to consider exploiting. 

 

When the Apple buyback program is running, the company repurchases stock from shareholders and investors. Historical data shows that removing stock from the marketplace helped the company’s share price. Therefore, whenever Apple officially announces the commencement of a buyback program, volatility is expected on the  Apple stocks.

Develop A Risk Management Trading Plan

Stock trading comes with inherent risk. Smart traders always develop a risk management plan before buying or selling any type of stock. There is never a 100% guarantee that stock will behave in the way you expect it to. A well-designed risk management plan allows you to make sensible decisions quickly if things aren’t turning out as planned.

 

Traders without a proper risk management plan stand the chance of losing their money quickly. 

 

Therefore, you should understand the risk-to-reward ratio and only invest an amount you are willing to lose for every trade you make. 

Apple Trading Hours

Apple shares are traded on the NASDAQ stock exchange according to a regular trading session schedule. 

 

Pre-market trading hours are from 04:00 to 09:30 EST, market hours from 09:30 to 16:00 EST, and after-market hours from 16:00 to 20:00 EST every weekday, Monday to Friday. 

Trading Apple Stocks with CFDs

One method of trading is to buy company shares directly on listed exchanges, like the NASDAQ stock exchange. This method involves the trader actually owning a share in the company until they decide to sell it. Long-term investors usually choose this method.

 

An alternative route is to trade using a contract for a difference (CFD) in a particular stock. Trading in CFDs involves speculating on changes in the price difference of the underlying asset without actually owning shares. 

 

A CFD is a financial contract, typically between a broker and an investor, whereby the broker party agrees to pay the tracer the difference in value between the opening and closing price of the trade in exchange for the capital investment, minus a broker fee.

 

In other words, if you were to invest in a single Apple CFD, it is approximately the same thing as buying a single Apple share. 

 

If you speculate that the price will rise, it is known as taking a long position. If you speculate that the price will fall, you are taking a short position. 

 

You can start your trading by signing up for an account at TradeEU and getting access to a wide array of tools that can assist you with your CFD trades.

 

Frequently Asked Questions

Now that you have a good understanding of how Apple (APPL) stocks perform and some of the basic technicalities of trading in them, we’ve put together some frequently asked questions to help you get started.

How do I trade Apple stock?

There are two main ways to trade Apple stock. 

 

  1. You can buy company shares that are listed on exchanges, such as the NASDAQ stock exchange which lists Apple stock. The best way to do this is to register with an online trading platform, such as TradeEU.

 

  1. You can trade Apple stocks using a contract for a difference (CFD) which allows you to speculate on the underlying asset’s price difference without actually owning the asset. You can create an account with TradeEU to access our robust features to start trading now.

Is APPL a good stock to day trade?

Apple stock’s day-to-day price volatility entices day traders. The daily fluctuations provide an opportunity for multiple trades, as long as you plan carefully and use a risk-aware strategy. 

 

Without past performance to be a guarantee of future performance, Apple has a  consistent track record of growth, which means that it might be good for long-term investment too.

 

Does Apple pay monthly dividends?

No, Apple pays its dividends quarterly or annually. Apple has never been known to pay dividends every month and they have paid out dividends to shareholders every year since 2012. 

What is the minimum stock purchase for Apple?

At the time of writing (Dec 2022), the price on one apple share is approximately $142 However, there is no set minimum stock purchase for Apple. Some brokers offer you the choice of buying fractional shares, to lower the barrier to entry for trading Apple stock.

 

References:

 

 https://capital.com/trade-apple

 

https://admiralmarkets.sc/education/articles/shares/how-to-buy-shares-in-apple

 

https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index

 

https://www.investopedia.com/apple-stock-aapl-5075819 

 

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Glossary

RISK CAPITAL

The amount of capital that should never jeopardize a trader’s overall financial stability.