AAPL may do a 4 -1 Split

Discussion in 'Stocks' started by rolando87, Feb 26, 2010.

  1. bnichols

    bnichols

    While I've been an investor for decades I haven't been trading long either (a few years) so please accept this advice for what it's worth.

    If it's true that price *can* rise following a split for the reasons mentioned in the Investopedia article then it should potentially happen over & over. Predictive rules (patterns) do exist otherwise trading would be far more of a crap shoot than it is, and therefore it might be worthwhile watching stock splits for a while to decide for yourself if this is such a rule and under what circumstances it should work work for you.

    In other words, IMO it would be unwise to risk capital on any hypothesis that you haven't tested "on paper" first for yourself (especially a lot of capital, hoping for a home run perhaps), because

    a) patterns don't work 100% of the time
    b) there is a very fine line between a pattern and wishful thinking, between a pattern working and lucky coincidence, and it takes a while to learn the difference, or at least to acquire the discipline to accept that a pattern has failed (and bail)
    c) another opportunity, presumably to make money, will come along soon enough.

    It's hard initially watching trades get away, but by the same token it's far more pleasant making money than trying to make money back :-/
     
    #11     Mar 2, 2010
  2. +1
     
    #12     Mar 2, 2010
  3. mnikolic

    mnikolic

    heh. Almost as rare as Canadian $2 notes.
     
    #13     Mar 4, 2010