Learn Pair Trading – Apple vs Rimm
It was not so long ago that everybody was looking at Research in Motion (RIMM) as the new best thing. Everybody had a BlackBerry and the world was hooked, but then came along Apple (AAPL) with its iPhone, and suddenly the whole game was changed.
Today we are going to look at a unique strategy called “pair trading.” In our Apple vs RIMM example, we are favoring the percentage change in the market between RIMM and APPL to move in Apple’s favor no matter which direction APPL or RIMM head.
It is a great way to lower your risk. Take a second to watch the video, Battle of Tech Titans, Apple VS RIMM, to get a better idea of how pair trading can be used in your own trading strategy and how it can actually be used in this example.
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