11 Great Tips To Trade Stocks During Earnings Season
Woman trader excited to trade stocks during earnings season.
(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.
Image Source
- Trading During Earnings Season: Shutterstock
New traders always makes mistakes during the trading, so its a very useful source to avoid these kinds of mistakes.
How to identify profit cushion stocks?
You can identify such great stock through analyzing prevailing trend in the sector (some sectors are bullish), historical background of selected stocks (some stocks have history of announcing outperforming results), reputed analysts estimates (several sites provide them time-to-time), as well as your own expectation depending on your personal research on a given stock.
Best Wishes,
GetUpWise Staff