Embrace The ‘Fear’ Of Earnings Trades


Simpler Trading Team

Nov 10th 2020  .  2 min read

We would never encourage throwing caution to the wind, but as we promote often – trading is risky.

Risk is often the single most alluring aspect of trading the stock market. Doesn’t have to be a “bet the farm” level of risk, but every trade has the potential for loss.

And gain.

Earnings season presents a unique span of time where traders can embrace volatile risk with the potential for profit.

Likely every trader at one point in time has read or heard someone promote the thought that earnings are scary, unpredictable, and unprofitable.

Simpler’s traders will beg to differ. Our traders know how to “pick their poison” when it comes to earnings.

Why would any trader purposely enter into earnings season when so many others run the other way?

Because earnings season offers some of the most explosive plays.

Earnings season – when companies relay quarterly filings through a combination of press releases, SEC filings, and earnings calls – is predictable (every quarter), has a history for every ticker (pricing and performance for all past quarters), and it can be traded with a plan (Simpler’s traders can follow which signals and indicators offer potential).

Earnings trades aren’t “plug and play.” Traders need to understand all risk associated with these trades, how earnings setups are different from other plays, and they must have a willingness to lose whatever they put into the trade. (Sounds almost like our daily methodology for trading.)

With a strong understanding of earnings trades, Simpler’s traders can target some of the most effective plays throughout the year.

These plays can follow the big-name stocks, but don’t overlook lesser-known tickers. Some of the “non-brand name” stocks can often offer profitable opportunities.

Did you miss earnings season? Not really, because all companies report at different times throughout the year with most following the quarterly report time frame. Traders can discover methods to target earnings events.

There are no official dates for quarterly filings, so earnings periods can be an almost daily rollout of earnings statements from a variety of companies.

You don’t have to trade earnings season alone. Connect with Simpler’s traders to learn about opportunities with the next round of earnings.