Share price = Risks?
In an over simplistic way, yes I would agree share prices is propotional to risks, where higher share prices is likely correlating with higher risks.
However, that is only a single dimension perspective. In investing, there might be other reasons to consider. For example, the price may just break out from a range with a good uptrend structure. In that case, I might still take a long position and control my risks by placing stop loss at a reasonable price.
Do note if the price broke out of range, that level often is also the resistance line. Which means, it is highly likely the price might make an U turn and retrace. I would observe how the price moves before deciding on a good entry point. So do manage risks accordingly.
Lastly, how high is high? Is $4000 reasonable for $Amazon(AMZN.US$ ? I guess it depends on fundamental valuation and forward earning potential.
However, that is only a single dimension perspective. In investing, there might be other reasons to consider. For example, the price may just break out from a range with a good uptrend structure. In that case, I might still take a long position and control my risks by placing stop loss at a reasonable price.
Do note if the price broke out of range, that level often is also the resistance line. Which means, it is highly likely the price might make an U turn and retrace. I would observe how the price moves before deciding on a good entry point. So do manage risks accordingly.
Lastly, how high is high? Is $4000 reasonable for $Amazon(AMZN.US$ ? I guess it depends on fundamental valuation and forward earning potential.
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lady on street : Going charge to $180
IcySilver OP lady on street : $Apple (AAPL.US)$ is certainly still very strong
Johnnie Worker : AAPL is not cheap that’s for sure!
IcySilver OP Johnnie Worker : Yep, it is expensive now. If bought around $150 still good entry.
However, we don't know if Apple will go higher too. If that happens, then $180 might be cheap retrospectively.