Understanding the story behind a stock during earnings season is key. If a stock has a story behind it and good earnings — there's potential for an explosive move.
But just like any other trade, you have to have your timing right when trading earnings winners…
Timing Trades In Earnings Winners
Trading during earnings season requires patience and strategy. You don't want to anticipate moves…
If you buy the day before earnings or the week before, the odds aren't in your favor.
We want to join the trend and the crowd….
Don't play guessing games.
Because ultimately, stocks can announce terrible earnings.
And if you buy the night before and earnings are terrible, you get destroyed.
You get stopped out and take a big loss because you were playing a guessing game.
The key to trading earnings winners is to wait for the stock to react to the news. Then trade a repeatable setup if it's there…
If a stock is reacting positively after earnings, align factors in your favor — check all your boxes, create a solid trade plan, and set your stop-loss.
One pattern I like to look for in earnings winners is the…
Dip-and-Rip Strategy
Take advantage of powerful chart patterns like the dip-and-rip during earnings season.
Look for stocks with an earnings catalyst that is gapping up, trading high volume, and breaking key levels.
This is what I call an earnings winner.
You don't have to dissect earnings reports and dig deep into fundamentals. The chart will show you if the earnings were solid.
Combine a good earnings reaction with a compelling story stock and you could have a winner…
But you still have to time your trade right.
That's where the dip and rip pattern comes in.
Look for a stock gapping up in premarket and wait for it to set a high of the day at the open.
Then ideally it pulls back to suck in shorts. Then enter when it reverses and breaks the high of the day.
The dip and rip pattern is one of the must-know patterns available in my ebook.
Watch this video to learn how to trade the dip and rip.
For new traders, the key to success and consistency is trading less — focusing only on the most high-probability setups.
If you're juggling a part-time trading schedule with other commitments, earnings season is a great time to focus on swing trades in 'real' companies that you don't have to micro-manage.
Real stocks aren't as volatile as penny stocks, but you can still grow your account with the right approach.
Learn how AI can help you spot explosive opportunities during earnings season, and all year long...
I'm giving a special presentation on it next Thursday at 8 p.m. Eastern to show you how...
Sign up here to save your spot!
See you there.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
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