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Trading One Stock…

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Many of us probably know day-traders who live and breathe Apple stock. Not as fan-boys who miss the gone-too-soon, genius-founder Steve Jobs, but rather love the size of the shares, the volume, the liquidity, the options depth, and the institutional support. Every day, enough shares of Apple (NASDAQ: AAPL) trade that you can always buy, always sell.

How many, you ask? According to Google Finance, AAPL stock trades about 15 to 20 million shares per day.
Blue Sales Stock Market Analysis

What else do day traders like about Apple?

Well at about $500 per share, it takes $50K to move 100 share block, or half a million dollars to move 1000 share block. These levels keep many day traders out, and mean that the moves are largely institutional buyers and sellers (your mutual funds, pension plans, and retirement accounts!) and hedge funds. Because the stock is fully optional, including the weeklies, this stock and all it’s trading and hedging possibilities could be your full-time job.

It also has a 2% yield, so it has an interesting growth & income floor of shareholders now…

Just trade Apple?

Yes. All day, every day… calls, spreads, puts, intraday scalping. On Friday, the stock moved almost $6 intraday, meaning a $6000 profit from edge to edge. Even capturing 1/10 of that move means $600 per day x 21 trading days per month x 12 months = $151,200 profit per year… if you can do it. Of course, it’s a lot harder than it sounds, and that requires the $500,000 trading account (or $125,000 on margin).

And the full strategy probably requires some Nasdaq QQQ ETF hedges in the form of puts, put spreads, or even pairs-trades. It might also be smart to have a futures account catching the other side of your trades in case of a Black Swan event, or just some huge news-driven move. But this over-complicates the beauty and simplicity of the trades, and also takes away the discipline of 100% cash overnight, every night.

Imagine how beautiful it is to live, breathe, and even move with a stock. Watching Level II every day, you can see the regular players, and get a feel for their moves, their strategies, their nuances. You can watch big institutional whales buy and sell, and splash in and out of the market each day, each hour — but also take notice of the HUGE buyers and sellers that move markets.

You could follow all the news channels for Apple, set Google alerts for a range of topics — even set up a separate email account to catch all your Apple news so you can read it each morning as you watch the overnight numbers. Then you can subscribe to blogs, parse news reports, reviewers, read Amazon verified purchases on their products — even track “sentiment analysis” on social media channels.

Why?

Because you want all the data. Fundamental, technical, empirical, anecdotal, heresay, rumor, and more to give you that beautiful edge with your one stock. The you can trade it again and again all day- long, short, options, and more.

Related posts:
6 Reasons why Forex trading is the best job in the world
What is forex trading?
The characteristics of Forex trading
How do exchange rates determine the buying and selling rates

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