Have you considered adding Apple stock to your investment portfolio but don’t know where to start? Well, you’re in luck today as we have put together a detailed guide that should help you buy and trade Apple stocks.
In today’s guide, we will go over everything you need to know about Apple stock, how it has fared so far and whether or not it is a good investment to put your money in. Read on for all the details.
Apple stock: Brief overview of the company
Alongside Amazon, Google, and Microsoft, Apple holds its spot as part of the “Big Four” tech companies. The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne.
Since making its presence known in the tech space, Apple has become a household name in the consumer electronics and software industry. Some of their flagship products include the iPhone, the Macbook series, and the macOS operating system. As of 2019, Apple had over 135,000 employees and an estimated $260 billion in revenue. Additionally, Apple’s market capitalization is larger than 1 trillion.
When did Apple go public?
Apple’s stock began trading publicly on December 12, 1980. When the company went public, each share cost $22. Since its first IPO, the company’s stock has split five times. As per a split-adjusted basis, the IPO share price was $.10.
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Cryptocurrency assets are volatile in nature. Buy and trade at your own risk.
73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
Trading with financial instruments carries high level of risks that is not suitable for all investors. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks involved.
An investment of $1000 during Apple’s IPO will be currently worth $1,635,847, a staggering return on investment.
As of January 2022, Apple was valued at $3 trillion, a feat that even Apple couldn’t imagine decades ago. Let us also quickly add that Apple was the first publicly traded U.S. company to be valued at $1 trillion and $2 trillion respectively.
However, despite Apple’s performance so far, we would like to reiterate that the company’s past performance cannot be used to predict its potential success in the future.
Given the insane volatility of the stock market, investing your hard-earned money in individual stocks can be pretty risky.
While we aren’t saying that investing in individual stock isn’t a good idea, a passive investment approach makes more sense for most investors. Plus, you can still invest in Apple stock by investing in benchmarks like the S&P 500, which track the stock performance of the top 500 American companies.
Even though S&P 500 has been down for much of the year, a look at its performance from 2017 shows that it is up almost 58%, which isn’t bad at all.
How has Apple stock performed in 2022
Apple shares reached an all-time high in January 2022, after what could be described as a stellar year for the tech industry. The performance in the tech sector during this period was greatly influenced by the Covid-19 pandemic, which saw many housebound consumers invest significantly in home office and entertainment devices.
However, even though Apple kicked off the year on a resounding note, the rest of the year has seen Apple’s stock value dip. An increase in inflation and global recession has severely affected consumer spending, causing a massive sell-off in the stock market.
But despite Apple stock dipping by nearly 20% year to date, compared to other tech companies, the iPhone manufacturer has performed better. For instance, AMD and Netflix have seen the value of their stock plummet by over 50% year to date.
While the stock markets continue to see more selling pressure, Apple has seen increased demand and sales of its products.
Is it a good time to invest in Apple stock?
Apple’s resilience throughout 2022 has made it’s stock an investor’s safe haven. While many tech companies have seen their stock value plummet significantly, Apple stock has remained comparatively on unscathed. To put things in context, while tech giants like Advanced Microdevices, Microsoft, and Alphabet have seen their share prices fall between 35% to 60% since January, Apple has only lost between 20% year to date.
The stock market sell-off has been largely because of reduced consumer spending amid rising interest rates and inflation. Nevertheless, Apple’s ability to weather the storm amidst insane selling pressure in the stock market has made the company worth investing in.
Even though most media reports about Apple suggest doom and gloom, Apple has continued to prove the media wrong.
With Apple posting better-than-expected fourth-quarter returns on October 28, even staunch critics of the company would be convinced that Apple is in it for the long run.
Looking at the company’s performance this year, we have no doubt that now is a good time to add Apple stock to your investment portfolio.
How to buy Apple shares online
Select a trading broker
Before you choose any broker, it is important to consider some of these factors. Doing this will save you a lot of headaches as you start your investment journey.
Free trade commissions: Trading applications like Robinhood and WeBull are two examples of trading apps that do not charge commissions on users’ orders. Many larger brokerage houses follow suit and now provide commission-free trades to their customers. It becomes much simpler to expand a modest account when you cut down on trading costs.
Fractional share trading: One share of Apple currently trades for close to $131.86, the amount of capital many people begin their investment careers with. You will be exposed to an unacceptable level of risk if you purchase a share because all your money will be invested in a single business. With fractional shares, you may own a piece of Apple stock while still having enough money to invest in other companies in smaller amounts. This gives you exposure to the price action while lowering the risk associated with your investment.
Easy trading environment: Your broker’s trading platform needs to have a straightforward layout and be simple to navigate. As you gain more experience, you should start looking for brokers that will let you plug in more complicated trading systems like DAS.
Reduced monthly service fees: Before choosing a broker, it is important to investigate the inactivity costs, account fees, and transaction fees offered by competing companies.
Margin trading: You can increase your buying power by “borrowing” from your broker when you use a margin account. The use of margin is an excellent method for expanding a limited account’s holdings. Nevertheless, doing so involves a substantial increase in risk. When you use margin, there is a chance that you will end up losing more money than the initial balance of your account. This will put you in the red with the broker and require you to put more money as collateral.
Add money to your account.
When funding your account, you should only utilize the money you can afford to lose. If the deal goes against you and you are putting your life savings on the line, things may turn out extremely bad for you. Deposits into client accounts can be made via debit cards and bank wire transfers. Credit cards are accepted by some brokers as well. However, the broker may take up to two weeks to set up and fund your trading account after they get the necessary information.
Determine the total amount that you are willing to invest.
When buying a stock, it is not a good idea to risk more than five percent of the total value of your trading account.
Choose between stock or ETFs
You have the opportunity to trade using an exchange-traded fund (ETF). ETFs are collections of firms that own stock holdings correlated to an index or sector. When you invest in an exchange-traded fund (ETF), such as the iShares Global 100 ETF (IOO) or the Vanguard Information Technology ETF (VGT), both of which provide you exposure to Apple, you gain exposure to the price action in each stock that is included in the fund. As a direct consequence of this, you spread out the risk. Investing in the company’s stock means that your financial standing is fully dependent on the operation of the business.
Set up your order
After deciding whether to invest in a stock or an ETF, you will execute your trade by selecting one of the following order types.
Market order: By placing this order, you can purchase Apple stock at the next available price. Nevertheless, that price can be higher than what you are willing to pay for the stock, resulting in slippage on your part. In a market that moves quickly, for instance, if you press the “buy” button while the price is $100, your order can get filled at the higher price of $101.
Limit order: Because of the limit order, you won’t be able to absorb any slippage. You will be asked to input the highest possible price that you are willing to pay. When you select the “purchase” option using the button, the broker will only complete your transaction at the current price. However, during times of rapid price movement, your order won’t be filled.
Stop limit: You can sell your stock once it hits the price you choose with this order. For example, you wish to sell your item for $125 but enter the market for $100. When the price reaches the level that you have set as your target, the trading platform will automatically execute the sell order. This will get you out of the deal while simultaneously securing a profit.
Stop loss: Because of the stop loss, you won’t be able to blow all your money on a single trade. For instance, you enter $100. Because you want to limit the amount of money you lose in the transaction to 5%, you will place a stop-loss order for $95. The trading platform will execute your stop loss if the price drops to this level. This will get you out of the transaction before the price crashes, limiting the amount of money you will lose.
Carry out the Order
After determining which order type will work best with your trading strategy, the next step is to put that plan into action and make your transaction. Fill out the order form on your trading platform, including the ticker symbol, order type, and the number of shares you wish to buy. After doing that, click the order button to complete the process. Instantaneously, the broker will place the order and confirm your fill after completing it.
Keep an eye out for changes in the market
Apple releases, including financial reports, earnings calls, projections, product launches, or acquisitions are fantastic opportunities for extreme volatility. Apple is a leading technology business. Alterations in the price action may be caused by Microsoft’s vulnerability to other market pressures. These factors are subject to change.
How to buy shares of Apple(AAPL) using eToro
Sign up for an account with eToro
It won’t take you more than a few minutes to sign up with eToro. The only information required to create an account with eToro is an e-mail address and a phone number. If, on the other hand, you intend to make a financial deposit and commence trading, you will be required to supply some more personal information so that your identity may be confirmed.
Complete your eToro profile
Before you can begin trading, you will need to finish setting up your eToro profile after successfully opening an account with eToro. For eToro to comply with the relevant AML and CTF requirements, the company needs the information above. Under your username, look for the link that says “Complete Profile,” then follow the on-screen instructions.
Fund your eToro account
You will be able to fund your eToro account once all of the appropriate verification steps have been completed. The lowest amount of money deposited into an eToro account is currently $200, or its equivalent in other currencies. The website allows users to choose one of seven deposit options. (Credit cards; debit cards; PayPalWire Transfer; Skrill; Neteller; WebMoney; or UnionPay.
TIP: If you feel like you need more time to be ready to trade stocks with actual money, you can utilize the virtual portfolio function that eToro offers to practice different trading methods without the danger of losing any money. By clicking the button located under your profile name, you will be able to transition between your real and virtual portfolios. You will receive $100,000 in virtual money that you can use to trade any instrument that is made available to you by eToro. You are free to utilize this money however you see fit.
Invest in shares of Apple
After you have added funds to your eToro account, you can begin trading stocks on the platform. You can purchase a stock or sell it short based on what you anticipate the behavior of the market to be going forward. You can buy shares of Apple by going to the search box at the very top of the eToro interface and typing in either the company name or the ticker symbol of the stock you want to purchase. You will also be able to find crucial information about the stock, such as the balance sheet, income statements, and even more information, in addition to the price chart that is currently being displayed. Research is made available for certain stocks as well.
To place an order for Apple stock, click the “Trade” button. A new window will pop up where you can make adjustments to any aspect of your trade.
If you go to the top right of the screen and switch between “Trade” and “Order,” you will have the option to either buy the stock at the best available price or enter the exact price you want to acquire the stock. You can configure your stop loss, leverage, and take profit levels in the area located at the bottom of the screen. Take profits are used to realize gains by automatically closing the position once it reaches a specified value above our entry price. Stop losses define the maximum loss you are willing to take in the trade, while stop losses define the maximum loss you are willing to take in the trade. Your order will be sent in once you click “Open Deal,” and your trade should be carried out within a short time.
Keep an eye on the performance of your MSFT stock.
You will be able to monitor the progress of your trade in the “Portfolio” area as soon as your order has been processed. If you aren’t satisfied with the levels you set for your stop loss and take profit in the previous section, you can modify those levels. You can get out of the trade by clicking the X icon on the right.
Conclusion
If you are interested in purchasing Apple stock through an online platform, eToro is an option that you should consider. The platform’s user interface is straightforward and simple to use, making it ideal for novices, while the platform itself provides a comprehensive set of capabilities. eToro is a platform that not only gives you the ability to trade traditional financial assets such as stocks, ETFs, and indices, but it also gives you the ability to trade cryptocurrencies. The copy trading feature is also beneficial for users who want to invest in a diversified portfolio of stocks but would rather leave the specific composition of the portfolio up to a more experienced investor.
