Earnings season is always an exciting time for traders, and it seems like one season barely ends before the next one begins!
There is always a lot to talk about as a new earnings season begins.
Analysts are beginning to plan for what earnings may bring, planning the calendars, all that fun stuff.
But before we really get deep in the thick of things, there's one piece of advice I always give traders as earnings come around:
Clear the deck!
Don't sit in positions on stocks that are about to report earnings, unless you are planning to hold them really long term.
So if you bought five shares of Apple and you plan to give it to your kids when they graduate high school, great! Hold it forever!
But if you're trying to trade something like Qualcomm on the bounce (that's just a random example, not based on anything I'm doing right now), then you need to be sure to get out of that position when earnings come around.
Of course, the temptation is always to stick around and hope for a big boost from the earnings call.
But to me, the risk of a big loss is too great. So I always clear my positions before earnings calls. |
No comments:
Post a Comment