Many people always wonder whether they should buy Apple (APPL) or Rimm (RIMM) but another strategy you can employ is actually to trade the pairs simultaneously. This means that you aren’t concerned with whether AAPL or RIMM will go up or down but rather which one will go up (or down) the most relative to each other. Market Club has a better explanation through video on how it’s done so check it out.
Usually, trading pairs of stock indicates that the trader isn’t sure about the direction of the general market. What you do, once you figured out which one will move higher than the other one, is to buy the stock that will go up more and short the one that will go down more, creating the relationship.
Let me know if you have any questions and enjoy the video.
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