It is important for investors to buy a stock at the right time, but it also is helpful to sell at the right time to produce profits and avoid huge losses.
Deciding when to sell is what separates amateur investors who focus primarily on what to buy from the professional and seasoned investors who know selling at the right time is far more important than buying at the right time. I want to buy and hold equities if they are trading above their “Neutral Zone” and trending higher, as I bet you do.
But, once a stock slips into my Neutral Zone, the odds increase significantly that the stock likely continues to move lower. If you want to buy low and sell high, then it is important to remember any stock you purchase is “just a piece of paper,” not a marriage partner.
Apple (AAPL) has become one of the hottest technology stocks on the market, but I think now is the time to sell. My trend charts let me know that now is the time to get out of Apple. I am NOT recommending that AAPL be shorted, but I do think it will go lower; so now is the time to capture profits. And… Now is NOT the time to be buying AAPL. I am sure this high-flying stock will give us a better time to buy a little further down the road.
As a rules-based trader, I know when to cut my losses or take profits and run. Apple has had a good run but now there are better stocks to buy. Keep in mind that I am looking for high-profile, highly traded stocks for when they exhibit sell signals detected by my investment tools. When a sell signal occurs, it does not matter what the historical data (technical and fundamental) show. When the signals show it is time to sell, I advise to get out now.
To find the stocks that are better to own right now than AAPL, sign up for a risk-free trial to my TurnerTrends Tools. Each week my software ranks more than 6,000 stocks and ETFs based on 12 fundamental and 5 technical ratings.
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Read below to learn about why the time to sell Apple has arrived.
Look at the TT Tools chart for AAPL and you can see the big sell-off in AAPL today has dropped it into the Neutral Zone and it hit its stop loss. Therefore, it is time to sell AAPL, regardless of the strength of the historical data.
Apple, Inc. (NASDAQ:AAPL) has been a favorite of a great number of investors as it has climbed 32% in the past 12 months. In fact, it is up 1,070% since January 2009. The company also recently released a bundle of exciting products. Apple has more than $250 billion in cash on hand and its market capitalization is closing in on $800 billion. Despite those successes and figures, the recommendation from TurnerTrends Tools is to sell.
While Apple’s basic financial indicators may encourage investors to buy and hold, that complacent strategy will leave profits on the table that cannot be recovered in the future. Apple, of Cupertino, California, can be credited with establishing itself as a premier technology company worldwide. From the launch of its Macintosh computer in 1984, the company has followed up by introducing iPhones, iPads, Macs, Apple Watches and Apple TVs. Its four software platforms — iOS, macOS, watchOS and tvOS — connect across all Apple devices and let people use the company’s App Store, Apple Music, Apple Pay and iCloud.