Earnings reports is the company report for their quarterly earnings, including net income, sales numbers, earnings per share, and more. This is the time stock price has strong change, and this is the good chance for investors. Here’s my strategy use Earnings Reports to find a good time jump in.
1. For Bad Earnings Reports
Almost the value of company lower-than-expected will make the price strong down, and I like this, this is a bid chance to find good company has cheap price and good time to jump in, example, in Facebook Reports First Quarter 2018 Results, the price of Facebook stock drop more than 20% in a single day, the price drop from $210/unit to $178/unit. In my opinion, this is really good time to buy, I bought Facebook at this price and now this investment has +3.70% profit, you can check it on my eToro profile.
For other bad earning reports, if the price drop about 5-6% after earnings reports public, I always waiting more than 2-3 days, if the price sideaway or dropping a little bit, I will jump in.
2. For Good Earnings Reports
We can see some signal of good earnings reports, like price growing up many days before, and good news on some finance news website. If the earnings reports is good and the price up not much (below 5%), this is the time to consider to buy, if the company is good for long-term, good time to jump in, if not, we can choose another stock.
3. Affect To Index Fund
Earnings Reports will make price change a lot, it will affect to index funds including those stocks, some index fund (ETFs) has open trading hours 18 hours a day, we can research about Eanings Reports and predict the price will up/down, and decide to going LONG/SHORT of related index fund.
I create a website called MarketDatebook - collecting earnings reports group by day, I used it daily to check company stock earnings reports and do following strageties above to find good time to buy/sell stock.
Thanks you for reading and happy trading!