How to trade or invest in Apple stock: The Tradu guide
We cover
- What is Apple stock?
- How has Apple stock performed over time?
- What affects the Apple stock price?
- How to trade or invest in Apple stock
- Pros and cons of Apple stock
- How to start trading or investing in Apple stock with Tradu
What is Apple stock?
Apple stock refers to shares released for public trading by Apple Inc., the largest company in the world by market capitalisation. The iconic tech giant was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Apple has gone on to design, manufacture and sell a range of consumer electronics, software and online services globally.
Famous products in its lineup include the iPhone, iMac, iPod, iPad and Apple Watch, all of which have disrupted markets through their innovative design. Apple's services line is fast-growing, too, including iCloud storage and streaming services such as Apple Music and Apple TV. This impressive roster helped it become the first company to hit $3 trillion in market value in 2022, less than four years after reaching the $1 trillion mark.
Listed on the NASDAQ stock exchange, Apple stocks have often been in high demand resultantly. They're also covered by top market indices including the NASDAQ 100, S&P 100 and Dow Jones Industrial Average.
Apple first went public on 12th December 1980 priced at $22 per share. The company took time to really hit its stride, however, with founders Jobs and Wozniak leaving the company in the 1980s and causing the Apple share price to plummet to $2.
Jobs returned to the helm in 1997, executing a turnaround plan that included launching the iMac Power, Mac OS X operating system and eventually the iPod and iPhone. Apple stock prices rose rapidly over the next decade, despite fluctuations around the 2000 dot-com bubble and the 2008 global financial crisis.
Steve Jobs resigned in 2011 due to illness, with Tim Cook stepping in as CEO and guiding the company to its record $1 trillion valuation in 2018. Concerns over company performance emerged soon after and during the COVID-19 pandemic, but shares recovered to hit all-time highs in 2023.
What affects the Apple stock price?
Like any financial asset, Apple stock quotes can be driven by a range of factors influencing supply and demand in the market. Key factors to monitor include:
- Earnings: iPhone sales have remained strong amid stiffening competition, while several other products and services have achieved success. Not every Apple release hits the mark, however, and there's constant pressure to keep performing and innovating in saturated markets.
- Economic news: As an international company, demand for Apple products is also driven by global economic health. Sales of non-essential items often drop during major downturns, even if many now consider smartphones as must-haves.
- Competitors: Apple's rivals include household names such as Microsoft, Samsung, Netflix and Dell, all of which are constantly striving to increase their market share in different areas.
How to trade or invest in Apple stock
Trading Apple stock directly
Trading directly means taking ownership of Apple shares. You then have the option to hold or sell them in the short or long term, profiting if the share price goes up and possibly receiving dividend payments too. Investing in Apple stock is easy with Tradu; simply set up your account, add funds and choose how much to invest.
Stock trading is ideal for longer-term investments and typically less volatile than trading derivatives as a result. You can't use leverage to increase your position size, however, and can only profit from bull markets.
Trading Apple stock with derivatives
Derivatives offer alternative ways to trade Apple stock without actually owning it. Instead, through CFDs (contracts for difference) with Tradu, you'll speculate on the stock's price movements over a defined timeframe.
Both products are leveraged, enabling you to take larger positions from smaller deposits and amplify your profits or losses. They allow you to speculate on rising or falling markets, creating extra trade opportunities in the short term. Read our guides to learn their finer details. · CFD trading guide
Pros and cons of Apple stock
Pros of Apple stock
- Market leader: Trading Apple stock gives you exposure to a global technology powerhouse and one of the premier securities in several top stock-market indices.
- High liquidity: The high profile of Apple stock means there are always lots of traders in the market, making your trades more cost- and time-efficient.
- News coverage: Apple receives considerable news coverage thanks to its celebrity status, making important updates easier to follow.
- Trade options: You have options to invest directly or use leveraged CFDs, suiting long and short-term goals and bear and bull markets.
Cons of Apple stock
- Volatility: Like all financial markets, Apple stock is vulnerable to fluctuations that are outside of your control and can be difficult to predict.
- Leverage risk when trading derivatives: Leverage is a powerful tool that can increase losses just as easily as it increases profits, making it important to use risk-management strategies.
How to start trading or investing in Apple stock with Tradu
- Open a Tradu trading account. Set yourself up online and add capital to begin trading.
- Craft your trading plan. Consider your trading timeframe, available capital, risk tolerance and preferred markets to shape strategic goals.
- Study Apple stock price performance. Use in-depth fundamental and technical analysis to track and predict the market.
- Open your first position. Buy Apple stock directly or speculate on its movements using CFDs.
- Improve your knowledge: Check out our wide range of resources to sharpen your skills and increase your market exposure.
- Expand your portfolio: Diversify your portfolio by trading across multiple markets, including CFDs on crypto, forex and commodities
With Tradu you can trade crypto via CFDs or you can own real crypto where you take ownership of the underlying asset.