Is this a smart stock move?

Im new to the stock market and im investing my first $1000. I was wondering if buying $1000 of apple stock right now would be a smart move. The stock is going for $106 right now, is this too high for a begginer?

AAPL Good going forward,,LONG Term.

TIMING,,,,TERRIBLE

It's teetering on a cliff edge now,,,due for a substantial correction(selloff).
2,actually.
It's Own Technical Correction,
And,,a traditional,seasonal Market Correction.

Price level for an entry,,,
that's a matter of Your personal perspective.
Buy it NOW,,,you'll make money.

But You'll also get to watch it Nosedive in the meanwhile.

Buy it in Mid/Late July,,,and from whatever price it happens to be Then,,
You will at least be Buying near the foot of a Next-Level Uptrend,,,,which has committed strength thru year end.

It will advance on it's own merits,,
Plus it will get support of an advancing Market.

Bought NOW,,,,You'd be Near buying a PEAK.
Or said conversely,,You'd be buying at the beginning of a price Decline.

That's NOTHING about Apple,,,
All about how Mkt Timing conspires with individual stock's Technical Signals.

Just my opinion,,,,but I'd say WAIT till July

Now is poised to enter a V.
At 106,,,I doubt you would make Anything before August.
But if bought at even as high as 95,,,,and at beginning up next UP momentum,,,
That's 10$ just to Retrace today's price.

52wk High is now Tested at 106 today.
If all else remains generally Equal @ AAPL,,,
A Retrace to Today's Hi is all but gauranteed.

And it SHOULD build on That to 115~120 range before any profit taking slows it in late October,to mid Nov.---next minor correction after the upcoming one.

Assume 106 to 116,,,+10,,,,from early May till October??

When it's likely you can buy it in June/July at 85~90,,,,and expect to see same 116
+25$ on 90 in 90 days is a LOT better than
+10$ on 106 in 5months

In the area of +10% vs +27%,,,and Half the time exposure.

Not to Mention SHORTING it around here,,,and cover it around 90 in next 6~8weeks.
Thats +16$ on the $90 Buy-to-Cover price
Thats about Another +17% Short Gain.
17% + 27%,,,,,thats about +45~50% area thru next 6 months

TWICE anything AAPL can be expected to do in any Long from Today.

I may well be optimistic on my downside estimate,,
"$90" is probably a better Stop/Cover area.

But I'm quite Confident AApl will see $10 DOWN from today's 106 before it sees $10 UP to $116
10 Down,10 Back up to HERE,,then next 10.

Mkt should be HOT this fall,,,we're already staging a strong rally signal with Gasoline Futures indicating a decent Drop by Aug/Sep.

That's bound to boost investor interest in throwing $$ at stocks as Mkt Rises toward year end.

AAPL always plays along with that.

Just my opinion,,for what its worth

After you buy all 9 shares and factor commission each way into the picture, that stock has to jump 20 or 30 points to even make it worth your while.

Start out with a mutual fund, put money in every month and build a good foundation first. You should never own just one stock. If I have to explain why, you are not ready for any stock investing. Good luck!

No, don't put your money into one individual stock. Investing in VFINX is a good deal because it mirrors the performance of the S&P 500, you can't go wrong with that, and your also diversified. I'm betting apple will go down, and have bought put options against it for an extended future date.

I see you are interested in investing in the stock markets and is about to make a quick, uneducated move with completely no strategy of your own.

There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/)...

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.

So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.

All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Hope these information helps.

http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

.

I am scared for you. First of all, you don't care what the price of a stock is. ( Well, you do but that subject is beyond this scope.) What you should be asking is, "Is the PE too high for me."
Could I recommend a no load index fund as a first investment?

Investing in a single individual stock is a real crap shoot. Here is exactly how you should start out.

Go to

http://www.vanguard.com

Open a Roth IRA.
Put your money into VFINX (S&P 500 Index Fund)
Sign up for automatic checking account small withdrawals

Once you have done the above, then you will have plenty of opportunity to figure out what to do next. YOU DO NOT need further research at this time.

DO IT NOW!

P.S. No one will disagree with this advice.

First, since you know nothing about stocks, forget about Apple. Put your $1000 into an index fund. Vangaurd Total Stock Market Fund is a great one. It's returns are based on the entire stock market, which since the 1920's has returned some 13% annually even with the Great Depression and all the disasters of the century. You diversify automatically, and you have the peace of mind of knowing that the market has overall always been up.

Apple is already valued pretty high. I'de advise you not to based on my personal research. The stock is great, don't get me wrong, but at 106$, it is expensive. It's intrinsic value is around 103$, so why buy it when it's at 106$. Stupid people buy at high prices. Apple is definately already high.

I'de advise looking into commodities like oil, corn, water, etc. You must know about market cycles. Right now, stocks are hot. When they do cool, investors flock to the commodoties, which is why I would say get in now. Specific areas to look at...

1. Oil Companies that are trading at discount...
BJS, TGA, XOM, ESV

Babyboomers are retiring and living longer. Healthcare demand will grow and grow as they age.

2. Healthcare companies trading at discount...
UNH, HLTH
----------------------

A good strategy...
1. Analyze the business model.
Profits, earning, metrics, etc. The underlying business behind the stock must be excellent.
2. Place valuation on stock price.
Apple trades at 106$, but I see it worth 103$. I would not buy. Finding this valuation is an art, and takes some quatitative analysis.
3. Charts tell you when to buy/sell.
If you have made a decision to buy/sell, charts will tell you when you should do the trade.
--------------------------------------...

NEVER SPECULATE

I'm assuming you're only looking at Apple because it simply is Apple and looks great, and don't get me wrong, it is great, but betting on it going up is a HUGE risk. KNOWING it's going to go up is much better on the nerves. That is why analysis is so important to so many investors. The analysis is like a weatherman's forecast. It may not be right all the time, but it can tell you the direction you should go. Which stocks to buy, when, how much, etc. You should never guess at those things, because you will lose out.

Check out...

1. Fundamental Analysis
2. Technical Analysis

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