11 Great Tips To Trade Stocks During Earnings Season

Great Tips To Trade Stocks During Earnings Season Woman trader excited to trade stocks during earnings season.

(10) Never Expect Big Moves Near Expiry Of Derivatives

It is one of the most technical strategies or tips for share trading during earnings calendar. Expiration date of all listed option contracts may vary from one country to another.

In US, it is usually 3rd Friday of contract month while in India, it is on last Thursday of contract month. Investors usually prefer to book profits near contract expiry.

Those who were trapped in wrong position will not get any chance to cut their losses. Thus, you should not expect any magical movements near expiry even if results are declared around it.

However, big movements may occur but only in rare case scenario. Sometimes, big investors or traders may bring good change even after few of days of result announcement.

[Read Also: 16 Key Indicators To Make Money Quickly In Stock Markets]

(11) Try To Look Beyond Consensus

It is one of the wonderful tips to trade stocks during earnings season. Result season is always accompanied with stock analysts estimates or consensus about company’s performance.

Generally, consensus estimate is an aggregation of individual forecasts. It may not include what the best analysts think about a given stock.

Some stock experts or analysts are widely known for providing accurate earnings forecasts. However, others are known for missing their forecast with a wide margin.

Therefore, it’s wise decision for investors & traders to follow analysts with best & proven track record. You should use their forecast rather than following consensus blindly.

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3 Comments on 11 Great Tips To Trade Stocks During Earnings Season

  1. Commodity Tips // March 20, 2017 at 2:28 PM // Reply

    New traders always makes mistakes during the trading, so its a very useful source to avoid these kinds of mistakes.

  2. How to identify profit cushion stocks?

    • Editing Staff // February 14, 2017 at 9:02 AM // Reply

      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

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