2017

Nov
18

Earnings Season (season report) – 14 useful tips

Earnings Season

Continue to publish materials from the archive.

Earnings Season provides us with the most of the opportunities for conducting profitable trades. This is our final series of games. It's like opening a, repeating every day for six weeks and four times a year. Every day is a new. Every day is special. Every day – delicious. Every day gives a lot of possibilities. It's our favorite time to trade. Here are some suggestions for, to help you maximize these opportunities during this Earnings .

1) Spend a little more time for preparation

Read the briefing night and morning. You have it should become a daily habit. During Earnings Season , after Closing you need to read all the reports on the profits, and choose the most appropriate action. During Earnings Season training should take place in two stages:

  • training night
  • training in the morning

At night, you need to develop some trading ideas and fully prepare them – so, as if it were happening in the morning. You have to build a plan for each of these ideas. You need to be sure, you have excellent ideas and you know, as tomorrow will make the money.

2) Share your best trading ideas

When you notice the important level in stocks, traded, share this information with the group.

3) Relax

This is our final series of games. Take care of yourself and be ready to participate in them.

4) The most common applications for the purchase and sale

During Earnings Season , stocks make huge moves up and down. And these movements may be higher or lower than, what do you expect. A purchase requisition may appear to be unlimited, and applications for sale endless. The action opened growth 5%, it may take another 10%. At the beginning of the Earnings Season , you can have the mental attitude for the season. You need to realize, you entered another period and the movement can be stronger, longer and steeper.

5) Action "In the Game" can be "in game" all day

During Earnings Season , Action "In the Game" can give great risk / reward ratio in the trades throughout the day. Often it is necessary to be careful in the middle of the day. The best trading opportunities at the Opening, but during Earnings Season , the campaign could "be the game" all day. And therefore, the assertion, in stock, which just published a report, we are in the middle of the day can't take advantage, wrong.

6) Shares may be "in the game" for several days

First, The second and Third day can provide a great trading opportunity for the stock, which recently released report. The First day will set alerts at important levels of action. And trade from these levels. Some prefer to trade stocks on the Second and Third days. The amounts below, and the tape easier to read. But these levels they determine the First Day, and get the profit they make all the days.

7) Not too sprayed.

During Earnings Season provides a huge number of possibilities. But you should only focus on some. If you try to follow too many shares, you will put yourself at risk of ineffective work on this large number of shares, instead, to work effectively on multiple shares.

8) The levels of the Pre-and postmarket very important

Be careful, as stocks are traded. View, if you can see the point of changing the behavior of the stock -inflection points. Also, be careful, how the stock behaves after, as the reports sounded figures. Sometimes the action may initially panic, and then to return into place. This panic can be an indication, that action is short-term speculators, especially, if during the downward movement there is a considerable amount. So, if the next day you see a weakness, you can expect unusually strong downward movement.

Notice, as the action was trading at postmarket. If in the Premarket it is trading above, than postmarket, it is a bullish signal. If in the Premarket it is trading below, than postmarket, it is a bearish signal.

Notice, where in Premarket trading the greatest volume. For example, the action can show a larger part of their volume level 30.50. Use this level. If the stock is trading above it, it is open to long. If below – in short.

Identify the levels Premarket and postmarket in your stock. If AAPL could not trade above 93.50, use it as the resistance level. If AAPL cannot trade below 92.60, use this as a support level. For example, open the short on AAPL and are in it until then, as long as she stays below 93.50, but if AAPL breaks 92.60, then ask yourself, if AAPL is not going to start the break down.

9) Identify models for each Earnings Season

The model developed during each Earnings Season . Pay attention, whether the trend of a stock with a negative reports on profit closing at the lows, or make the bounces. Please note, finish actions with the strong leadership of the year in its highs. Please note, sold these, have a tendency a good bargain stocks, at the Closing. The model will appear. Each Earnings Season Earnings unique. Work, to recognize these models.

10) Do not enter a position during a conference call

If you study the action, which went report, find out, when the company, holding this action, will be a teleconference. If you are in the position right before or during the conference call, the company, you will not imagine the real risk.

11) Know, when your stock will be given a report

Day check what stock will be given a report. If you sell ADM before Closing, and after Closing it will be given to the report, it can make some strange movements before Closing. Traders can begin to position yourself to the report. If you do not have this information and trade promotion, you may not be ready for this strange and sudden movements.

12) Increase size the transaction

During Earnings Season liquidity more. You can increase the size of your lot. To get in and out of stock will be easier.

13) Focus

Unfortunately, the market does not care about your personal problems. Earnings Season is our very best opportunity to make money. This is the business end result. Stay in the workplace for as long as possible, to concentrate for as long as possible. Take care of yourself and not get sick. Be prepared to participate in transactions.

14) The volume

Share with an average daily volume of $3 million. can give $20 million. after the release of the report. A sharp increase can affect your ability to read the tape. Think, will your action be too much, even if she's in the middle is your comfort zone.

Learning stock trading on the NYSE, Nasdaq, Amex

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