Corporate earnings can increase stock volatility to significant levels. Investors & traders often look for tips to trade stocks during earnings season. It is the period when everyone is quite nervous towards its positions.
Stock analysts or experts start providing their earnings estimates. They even don’t hesitate to provide share trading strategies or views through media sources.
Big investors or fund houses become more active in the markets. It results in higher speculations in equities until quarterly earnings report is publicly out.
Thus, small investors or traders need to be extra cautious during earnings announcements. Here are 11 money making tips for share trading during earnings calendar:
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(1) Stock May Fall On Good Earnings & Rise On Poor Earnings
It is one of the most shocking & great tips to trade stocks during earnings season. Quarterly earnings report can increase your heart beat or nervousness. It is due to the fact that it may showcase many unexpected positive or negative figures on quarterly basis.
As a general rule of trading, stocks should rise for positive results while reverse on negative results. Most of us also think of the same movements after results.
But, if a stock falls on good earnings report or rise on poor or bad earnings reports can really shock you. It happens typically when markets tries to fool investors. However, still we should consider that market is always right.
Although, there are no hard & fast rules about how to trade stocks during earnings season. But, you should cautiously watch market reactions after quarterly results. It will help you to establish or maintain your position in a given stock.
- Trading During Earnings Season: Shutterstock