Earning Season Trade

Four times a year, publicly traded companies are required by law to report earnings. At these times, market can resemble a casino due to traders predicting the move and with the increase volatility this move can result in a hefty sum of money or could be a breeding ground for blowups. Of course, depending on one’s exposure or position size. 

A company can beat its earnings and stock price can still go lower if the earnings report news is already priced in or "baked-in" to the current stock price. Other times, stock can miss its earnings and can result to a stock price ripping higher. 

Today, we traded six stocks, five beats its earnings and one with a disappointing outlook due to rising interest rates. We were able to have a stress-free trading day using our earnings strategy trade book. Met goal and was done trading at 1045 AM, an hour and 15 minutes of trading that had given us a 100% win rate on the 6 out of 6 stocks that were all green trades. 

Learn how to trade earnings by signing up in our day trading unlocked course.