Earnings Trading

Discussion in 'Strategy Development' started by chiefraven, Oct 7, 2006.

  1. Anyone here focus on trading stocks who just had their earning reports out? If so, what are your strategies? What are the steps you take to do your research. What are some important things you look for?

    What sources do you use for finding the best fundamental data and anlysis... i currently use yahoo finance, but it's not the greatest thing because most of the stuff on there are delayed. For example, the shorts interest only shows shorts a few months before the earnings. =\

    Let's hear some ideas
     
  2. I've done this before. One thing to remember is never to trade ahead of earnings. It may seem like a sure thing from what all the analysts say, but IMO its a 50/50 gamble. I dont use fundamental data, and what fundamental data I do read from dow jones news wire is only a few sentences, enough to get a good idea of stock direction. Also, i think TA becomes somewhat useless when earnings come out because everyone is trading on emotions. I like to just wait a day or two after and play the gap that the earnings produce. Any gap of over a dollar, to me, is worth looking at. If you trade intra-day, get a good news streaming service. I dont use any news service other than briefing.com and dow jones news wire that i get for free :D, but its not streaming :(. Your going to need streaming news for this if you're a day trader.
     
  3. Earnings Whispers the night before, confirmed by large premarket gap. Its free.
     
  4. yeah but how do you know if the stock doesn't just come down right away right after the premarket gap? you dont know that
     
  5. yeah, no need to look for specific companies reportin'; just scan for gappers in premkt and u find 'em all there; specifically those that attract a lot of interest in premkt are the ones more likely to trend big and offer the best r/r.
     
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  7. i couldn't trade meslef outta paperpag on large caps liquid issues with non news. reports and upgrades/downgrades/m&a is all i trade; r/r is 20fold better. can't figure out melsef how people can trade succesfully 20c ranges stocks every day.
     
  8. what's r/r ?

    and do you guys usually get in before the earning release, immediate after the release at the afterhour, or the next day at the open?
     

  9. r/r= risk/reward.

    i usually get in at the open or in premkt, the day after report is out. at times i also trade ah releases, dangerous to do that but sometimes it's really feee money if u are in at the first bar and ready to pay up the spread. takes seconds for the stock to move 3-5%.
     
  10. what's r/r ?

    and do you guys usually get in before the earning release, immediate after the release at the afterhour, or the next day at the open?
     
    #10     Oct 7, 2006