This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Absolute Worst Advice on AAPL Right Now

Second, the Tweet from Carl with the quote from Rolfe. Again, might work for Wedgewood and the presumably well-off Rolfe, but, man, that frame of mind absolutely does not work for the average investor.

Rolfe seems like the type of guy who would admit this -- he's emotional right now. On one hand, he admits he made a bad call. He concedes he has to look at his position in AAPL closely. All good.

However, he's playing with fire -- and sending the wrong message to investors watching him -- by going against what the market gives him.

Valuation may never mean a damn thing again. I've been making the comparison between AAPL and names such as Amazon (AMZN - Get Report) and LinkedIn (LNKD - Get Report) for a while. Now, we throw NFLX back into the mix.

I'm not a valuation guy. I'm not calling irrationality here on AAPL on the basis of valuation alone. I'm calling it because we spend far too much time gauging Apple against its unwritten future and too little time assessing it vis-a-vis the reality of the current, subpar competitive landscape.

But, for better or worse, it is what it is. To dig your heels in -- because selling now would compound our original mistake, as Rolfe said -- are famous last words for so many investors. While that type of "strategy" might not blow up Wedgewood's account, it sure would crush quite a few retail portfolios.

There's a good chance that if you "stand your ground" (always be careful when you speak about a stock using such emotional language), AAPL will turn around, you'll make money, recoup any losses, gain back profits and look like a genius. But you have to resist that urge. Because, like so many other things in life, what you think is going to be a one-off thing often becomes a habit. And reacting with an emotional stubbornness will hurt you more often than not.

--Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $671.32 0.00%
AAPL $94.88 -0.32%
LNKD $124.91 0.00%
NFLX $91.54 0.00%
FB $117.43 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs