I've had some success swing trading, (incl. C) but I'm new to day-trading. Assuming I'm comfortable with, say, a 2 to 1 profit/loss stop, is there anything specifically wrong with trading a given stock on the day of earnings? C announces at 8am on MON.
My idea: execute a trade immediately as the pre-market opens and listen to the earnings call. If good news, I hold on. If bad I get out immediatley.
My reasoning: C's been on a tear, but knocked out on FRI because of GS news. 7 day ATR is .21: Good news could provide quite a bump, but bad news might not dissolve the price as quickly, given that C stopped exactly on its 10 day EMA on FRI. MACD is hard to gauge.
Is this a really bad idea (one word response acceptable or is there any merit?
Makes money = good idea
Loses money = bad idea