Why are so many people attracted to playing during earnings?

If the company did very well, it could jump quite a bit due to the earnings news and you can make a few thousand dollars very quickly.
On the other hand, you can also lose a few thousand dollars very quickly, depending on how the company did or when the stock moves down.

 

You said it yourself. Earnings are a source of alpha. That's why people attracted to playing during earnings!

 

don't be biased.

if you want to be a successful trader learn the art of short selling.

 

I'm generally not able to trade the overall market, or a particular sector. I'm better at trading a particular stock. The most stocks are making unique moves during earnings, so I trade the most during earnings.

I think a giant red herring in trading is thinking about making x per day. If the dow moves 20 points or the dow moves 300 points, why would I be able to trade the same amount and/or risk/make the same amount on each of those days?

Similarly if I trade individual stocks, why would I be swinging the same on a day where X companies have earnings if other days 10X have earnings?

The day with more earnings is more likely to be better for me.

This isn't a game of perfection; it's taking the best shot with the most size at the most opportune time.

Edited to say - I wait to trade during market hours. Get profitable first, then get size. I think another red herring is taking a position and pure gambling on the direction of NFLX or whatever on their announcement. I do not do this. I trade the following day when the market is open and am not distracted by what I think of as "glamor stocks," the high-priced ones everyone has heard of. I will consider ANYTHING that had earnings prior to the open.

 

Earnings are interesting to traders for two reasons:

- Most of the time they are premium crushers
- On exhuberant moves they tend to pin price to test key areas in larger charts that would otherwise take weeks if not months to be reached

Typically an intelligent trader will trade earnings after the report, not before

 

Not two words one hears often on ET... bit of an oxymoron on this site...

 

Why are so many people attracted to playing during earnings?"

Simple. that's a relatively huge catalyst. -- Trading is all about catalysts, or a market's pulse to make it move.
You have to understand what you're doing though -- and not just basically blindly bet on a direction.

 

Hello,
I think, those people have some analysis reports and insights.
so, they can play with some amount.