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How to Trade Earnings Season Without Getting Burned Earnings season is a trader’s dream and nightmare rolled into one. It brings massive volatility — the kind that can create explosive gains or wipe out weeks of hard-earned profits overnight. If you’re not careful, you can get caught in a move that rips right through your stop and leaves you wondering what just happened. I’ve seen traders make the same mistakes every earnings season — jumping into trades without considering the risks, holding through reports without a plan, or thinking they can predict how a stock will react. If you want to survive and thrive, here’s what you need to know. Know When Earnings Are Scheduled This seems obvious, but you’d be shocked how many traders ignore it. Before you take a trade, check the earnings date. If you don’t, you might find yourself in a position that gaps 20% against you when the market opens. Most brokers will show upcoming earnings dates, but I also recommend using a dedicated earnings calendar. If you’re trading a stock heavily impacted by earnings, like Nvidia (NVDA), Apple (AAPL) or Tesla (TSLA), make sure you know when the report is coming and how the stock typically reacts. Avoid Holding Positions Through Earnings Unless It's Part of Your Strategy Earnings reports are binary events — the stock either moves in your favor or against you, and the reaction isn’t always logical. A company can beat expectations and still drop 10% because guidance wasn’t strong enough. If you’re trading options, implied volatility is usually sky-high before earnings, which means premiums are inflated. Buying calls or puts right before the report is often a losing game because even if the stock moves in your direction, the volatility crush can wipe out your gains. Focus on Post-Earnings Setups The best trades often come after earnings, not before. Once the dust settles, you can trade a stock based on how it reacts to the news instead of gambling on what might happen. Look for:
Earnings reports don’t just impact individual stocks — they move entire sectors. If a major company like Microsoft (MSFT) or Alphabet (GOOGL) disappoints, it can drag down the entire Technology sector (XLK). The same goes for other sectors. A weak report from JPMorgan Chase (JPM) can weigh on Financials (XLF), and bad numbers from UnitedHealth Group (UNH) can hit Health Care (XLV). Earnings season is a great time to trade, but it’s also when traders make some of their worst mistakes. Don’t treat it like a casino. Know when earnings are scheduled, avoid unnecessary risk, and focus on setups that form after the report. If you do that, you’ll come out ahead while everyone else is trying to figure out what went wrong. I hope that helps! But here's the explosive part nobody's talking about... While Trump pushes for cuts, inflation is quietly creeping back up. And Powell's caught in an impossible situation:
And I've identified exactly how this political showdown could impact specific stocks after Powell's decision. Some could drop like stones, while others could surge 40-50%. I've just finished an emergency briefing breaking down what I believe will happen next and how I’m adjusting my trading strategy. Granted, I cannot promise future returns or against losses… But if you’re invested in this market, this is a MUST SEE… Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. |
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