Do You Make These Mistakes During Earnings?

Here's how I use the path of least resistance to maximize gains and minimize risk ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

"The key is to not go too big in any of these trades." Nate Bear, Lead Technical Tactician, Monument Traders Alliance Despite the recent choppiness in the market, earnings season continues to roll through. And today is no exception, with big names like Costco (COST), Dell DELL), ULTA (ULTA), Marvell (MRVL), Zscaler (ZS), and NetApp(NTAP) reporting after the bell. But I won't take any trades in these stocks today in my Daily Profits Live Room. Why? Because trading ahead of an earnings announcement is an all-or-nothing bet. Imagine if you bought ATM calls yesterday in Salesforce (CRM)... The value of your call options would be nearly worthless. Not only is trading ahead of earnings super risky… It's not a repeatable process. Sometimes, they can have what appears to be a strong earnings report but sell off because they missed a key metric. As someone who turned a $37K trading account into $2.7 million in trading profits in just four years…I can tell you confidently there is a better way to trade earnings. It requires patience and discipline, but it's well worth it. Allow me to explain one of my favorite strategies for trading earnings stocks: #1: Find Stocks With Strong Momentum I typically like to focus on stocks that have gapped up after earnings. There have been several over the last few sessions, including Chewy (CHWY), Dicks Sporting Goods (DKS), and Hp Inc. (HPQ). #2: Wait To See How React Now, just because a stock has gapped up after earnings doesn't mean I will trade it that day. Instead, I want to see how it trades that day. Will it give up the move? Will it grind higher the whole day? Will it close near the highs? These are all questions I'm trying to answer as I'm watching these stocks. Ideally, I want to see them hold their move and grind higher. #3: Enter The Trade In a Consolidation Zone If the stock can hold its big move, I will wait for it to consolidate before buying call options. It's what I did with a recent earnings winner on Pinterest (PINS). This allowed me an opportunity to play call options… The Last Great Crypto Bull Market Starts with the Latest Bitcoin Halving? This catalyst has happened exactly three times before... on November 28, 2012... July 9, 2016... and May 11, 2020. And on those three occasions, those who understood what was going on had the chance to collect gains ranging from 8,616%... to 12,280%... all the way up to 330,000%! In just 18 months or less. Discover the most important catalyst in crypto. And I was able to get rather quickly for a solid profit… I've recently discovered a similar setup in Dicks Sporting Goods (DKS)... I placed an aggressive trade in DKS using options this morning. Of course, this strategy isn't foolproof. Sometimes they won't work. But here's the thing…I am on the right side of momentum. The path of least resistance is up. And based on my track record in my Daily Profits Live Room, I can tell you that I win many more of these trades than I lose. Moreover, the winners are significantly larger than the losers regarding percentage gains. The key is to not bet too big in any of these trades. You want to let the numbers work for themselves. I want to be profitable over a series of trades. I don't want to make an outsized bet on one of the trades, and if it loses, it wipes out several winners. So, how you position size is critical. I'm super pumped about the next round of earnings, and I'm hoping they give us some chances to score big. My focus remains on high-momentum, low-risk plays with the potential for a fast profit turnaround. Join me in the Daily Proifts Live Room and discover when the best-kept secrets for trading post-earnings stocks. We've got a busy few weeks of earnings still left… If you're looking for ways to trade smarter and supercharge your account's growth… Click now to snag my latest trade idea! JOLTS Trade LIVE Tuesday, June 4 at 2 pm When The Gov't Drops Economic Reports... This One Trade Could Have Made 253%... 327%... Even 383% gains... Enough for overnight payouts of $25,300... $32,700... heck even $38,300! Discover The JOLTS Loophole (BEFORE Tues at 2 pm!)

 

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