There’s a specific occurrence that happens 4 times a year for virtually every company you can invest in, and that occurrence often brings with it a huge price jump or drop.
If you don’t know what it is or when it’s happening, you could all of a sudden be down 20% or more.
That’s why you need to know this date…
I clearly remember 2 specific days when I was just starting out as a novice trader and investor.
On one day, I had only just bought a position in a technology stock that looked promising when it tanked about a 3-hour period.
It came out of nowhere, as far as I could tell, and I lost roughly 22% on the trade.
Only about a week later the opposite happened to a different tech stock of mine, which jumped nearly 20% in a single day, and I had no idea why.
But both situations didn’t come about because of random events that couldn’t have ever been foreseen. They both happened because of a specific date that every trader and investor needs to know…
For absolutely any company that you’re either invested in or are interested in investing in, you need to always know this date:
The earnings report date.
4 times a year, 1 for each quarter, virtually every company that’s publicly traded is required to report their earnings for the previous quarter, and the results can be incredibly impactful.
A good report can cause share prices to skyrocket, while the exact opposite is true for a bad or mediocre earnings report.
And an important aspect of earnings reports to always keep in mind is that the good or bad sentiment about them all stems from the expectations by analysts about what the results should be.
So if analysts project a gain in net sales of 2%, but that number only rises 1.8%, that’s technically a “bad” earnings report despite the fact that sales did in fact go up.
And that “bad” report could doom the shares of that particular company to drop through the floor.
That’s why I recommend buying and selling stocks after earnings reports are released, which is usually on a different day for different securities.
Just do a quick online search for when the company of the stock you’re interested in reports earnings, and you should have the date within in a minute or 2.
And sure, catching a 15 or 20% bump in a single day because a good earnings report came out is fantastic, but witnessing one of your positions open 20% lower than the day before because of a less-than-stellar earnings report is horrible.
So be wary of earnings reports, and don’t go into a trade blind.
Thanks for info