(4) Keep Stop Loss But Don’t Give Extra Room More Than 10%
It is one of the most preferred money making tips for share trading during earnings calendar. Earnings season is full of speculations in the markets. These speculations can hit the markets anytime.
It usually results in increased volatility for some moments during trading hours. These speculations may result in sudden spike or downfall for a day or two.
It is a common strategy to shake weak hands. It can also hit your stop loss even when your positions are on right direction. You can prevent execution of stop loss order by giving additional 10% room for placing your order.
But, you should never give extra room more than 10% to your order. It is usually considered best strategy to deal with increased volatility during quarterly result announcements.
(5) Pay Close Attention To Stock Position With Or Without Profit Cushion
It is one of the most profitable tips to trade stocks during earnings season. Stocks with a profit cushion are considered best to hold during corporate earnings announcements.
A profit cushion indicates that you have unrealized gains in the current stock position. Stock positions that are lacking a profit cushion can be dangerous to hold.
It is due to the fact that big investors or fund houses have some information about the likeliness of earnings. It is very much possible that they are avoiding such stocks.
You should play cautiously when your stocks have unrealized loss before quarterly announcements.
- Trading During Earnings Season: Shutterstock