Million Dollar Trader Updates You On His Trading Pairs Strategy For Apple (AAPL) and RIMM (RIMM)
About five weeks ago I produced a video showing you the relationship between Apple (AAPL) and Research In Motion (RIMM). In the video I explained that the relationship was changing between Apple (AAPL) and Research In Motion (RIMM). I showed you a way to make money from this fact using a trading strategy that I call “pair trading” or “trading pairs”.
What pair trading means is that you buy one market while going short the other market in the same sector. Apple (AAPL) and Research In Motion (RIMM) are continuing to battle it out right now in the smart phone sector. It remains to be seen who is going to win this battle but it would appear as though Apple (AAPL) may have the upper hand based on its very successful release of a new, lower priced IPhone and the “APP” store.
Trading pairs is what many professional traders do when they are unsure as to the direction of the general market but feel pretty comfortable in their analysis of the relationship between two stocks. I hope you find the video both informative and educational.
