(8) Stock’s Reaction Is More Important Than Earnings Report
It is one of the most tricky & profitable tips for share trading during earnings calendar. As a general rule of trading, stocks should rise for positive results while fall 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.
You should try to trade as per stock’s reaction in markets. You should not waste your valuable time in finding answers for the rise or fall. These trading tricks are unarguable in stock markets.
[Read Also: 10 Wonderful Option Trading Strategies For Beginners]
(9) Make Positions Only In Already Researched Stock
It is one of the highly ignored yet valuable tips to trade stocks during earnings season. Share trading is quite tricky in nature. You can’t do gambling while trading in stocks.
You should make positions only in already researched & familiar stocks rather then unfamiliar stocks. Some stocks shows great up move before corporate announcements.
You should analyze a stock movement for a period of 1-2 months before the release of earnings. If a stock has already shown good upside then it is shows good results already factored in.
In such case, you should not expect big upside after results as it has already been taken place. Thus, it will be best to book profit or lock your profit with put option.
- Trading During Earnings Season: Shutterstock