There are plenty of technology firms vying for a place in your portfolio, with the company leading the pack being Apple. The California based tech powerhouse, has seen their products become a staple of peoples homes and pockets around the world, making them untold riches in the process. The usual approach to Apple and Apple shares is to hold out in the long-term for company turnover, but how do you get involved in the first place? This article looks at how to trade Apple shares on the back of Apple’s product announcements.
What are the “Announcements”?
Apple has made a habit of manipulating and controlling the hype machine every time they have a product to launch. They usually have at least one (or sometimes two) product announcements a year, of which the contents of such are usually kept under wraps until the very last moment. These announcements can make investors jittery, as the company doesn’t reveal a single detail to the public. The announcements definitely have an impact on Apple shares. Upon the announcement of the iPhone 3GS in 2008, the share price took a 7% dip, but upon the 2011 release of the iPhone 4S Apple shares rose almost 10%. As an investor, take these announcements lightly at your peril.
Should you want to buy Apple shares amidst the furor of these announcements, then you will need to have your finger on the pulse of what is going on. This means you are going to want to pay close to attention to the build up that is taking place. The iPhone 5S and 5C posted strong sales in the lead up to the iPhone 6 announcement, but new technology can make people sceptical. When Apple starts scaling back promotion you can predict that they have an announcement on the horizon. After Q3 results are posted, rumblings of a new iPhone tend to begin; “leaked” images and potential features appear all over the Internet. Simply put, if you want to trade Apple shares on the back of an announcement, you need to arm yourself with plenty of information during the build up to it.
Hold on Tight
Should you have timed things right and be in a position to trade on the back of an announcement, or you got in just before the media whirlwind began. You need to take on the most basic move in the world of trading and hold. Trading comes to a near standstill during the announcement, with a slight dip usually taking place just after, or within the same week during the iPhone 6 announcements’ case. But, history tells us that 6-month and 12-month returns are between 20% and 30%, a figure that will more than likely be worth waiting for. When it comes to Apple shares, to be successful at trading off the back on an announcement be prepared to hold, hold and hold some more.
Trading off the back of an announcement can be a very smart move, but only when it is done the right way. Apple shares can be a delicate product even at the best of times, meaning that you need to handle them with care. If you take into consideration the aforementioned then trading Apple shares off the back of a product announcement shouldn’t be too much of a challenge.