Shyon
07-25
My strategy will always be : Only trade after the earnings. I usually don't bet with the earnings as this used to be one of my major weaknesses in trading. Last time, I always tend to buy big before earnings especially on the companies which I am extremely confident with its results. However, throughout my investment journey, I learnt about the importance of "market expectations" and "next quarters forecast".

We need to factor in the current share price before earnings might already factor in especially for the "super impressive" results, as some insiders might always leak the news out. Therefore, sometimes, even if the earnings is extremely good (let's say improve by 100%, doubled), but if it is still below market expectations or the existing share price already been rallied and factored in such earnings expectations, the share price will usually pullback and drop.

Incoming quarters forecast is another key decider. Poor forecast will usually send the stock down regardless good QR.

Share your strategies for the earnings season
We would like to invite you to share your strategies for the upcoming earning season. How do you achieve high returns during the earnings season? How do you use options strategies to hedge risks?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Shyon
    07-25
    Shyon
    @TigerEvents @TigerStars @CaptainTiger @MillionaireTiger @Tiger_comments @TigerGPT @Daily_Discussion Please support if nice! haha
    • TigerGPTReplyShyon: 

      The recent drop in the market can be attributed to several factors. Here are some key points from the news articles:

      Dow Inc. reported lower-than-expected earnings for the second quarter and highlighted a slower-than-anticipated macroeconomic recovery. The company's net income and operating earnings per share were lower compared to the same period last year. The slower global macroeconomic recovery has impacted their sales and earnings. Read more

        

      Disappointing corporate results in the United States and Europe have contributed to the market drop. Tesla, one of the prominent stocks that have fueled the global rally, reported a drop in second-quarter earnings. This has had a negative impact on investor sentiment. Read more

        

      The Singapore stock market also experienced a decline, following a three-day losing streak. The market dropped more than 50 points or 1.5 percent, indicating a potential acceleration of losses. Read more

        

      It's important to note that market movements are influenced by various factors, including economic indicators, corporate earnings, geopolitical events, and investor sentiment. The recent drop in the market can be attributed to a combination of these factors. It's always advisable to closely monitor market developments and consult with a financial advisor before making any investment decisions.

      Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in the stock market carries inherent risks, and past performance is not indicative of future results.

      If you would like more specific information about a particular stock or market, please let me know, and I'll be happy to assist you further.

    • ShyonReplyTigerGPT: 
      Why market keep dropping these few days?
    • TigerGPTReplyShyon: 

      Certainly! Here are a few more strategies you can consider during the earnings period:

      Trading Options: Options trading can be an effective strategy during earnings season. Options allow you to take advantage of potential price movements while limiting your risk. You can use strategies such as buying call or put options, or employing more advanced strategies like straddles or strangles to profit from volatility around earnings announcements.

        

      Monitoring Analyst Estimates: Analyst estimates can provide valuable insights into market expectations for a company's earnings. By comparing actual earnings results with analyst estimates, you can gauge whether the company has exceeded or fallen short of expectations. This information can help you make informed trading decisions.

        

      Tracking Price Reactions: Pay attention to how the market reacts to earnings announcements. If a company reports strong earnings but the stock price drops, it could indicate negative sentiment or other factors influencing the market. Conversely, if a company reports weaker-than-expected earnings but the stock price rises, it could suggest positive sentiment or other factors at play. Monitoring price reactions can help you identify potential trading opportunities.

        

      Using Technical Analysis: Incorporating technical analysis alongside fundamental analysis can provide a more comprehensive view of a stock's potential during earnings season. Technical indicators such as support and resistance levels, moving averages, and chart patterns can help identify potential entry and exit points. Combining technical analysis with earnings-related news and data can enhance your trading strategy.

        

      Diversifying Your Portfolio: Earnings season can be volatile, and individual stock performance can be unpredictable. Diversifying your portfolio across different sectors and asset classes can help mitigate risk. By spreading your investments, you can reduce the impact of any single stock's earnings report on your overall portfolio.

        

      Remember, these strategies are not foolproof, and there are no guarantees in the stock market. It's essential to conduct thorough research, stay updated with relevant news and data, and consider your risk tolerance before implementing any trading strategy.

      Please note that the information provided is for reference purposes only and does not constitute investment advice. It's always recommended to consult with a financial advisor or professional before making any investment decisions.

      Let me know if there's anything else I can assist you with!

    • ShyonReplyTigerGPT: 
      Cool, any more strategy to use during earnings period?
    • TigerGPT: 

      It's great to hear that you have developed a strategy of trading after earnings. Taking into account market expectations and future forecasts is indeed crucial for making informed investment decisions. By considering these factors, you can avoid potential pitfalls such as buying into a stock that has already priced in positive earnings results or overlooking negative future forecasts.

      Market expectations play a significant role in stock prices. Even if a company's earnings report shows impressive growth, if it falls short of market expectations or if the stock price has already rallied in anticipation of strong results, there is a possibility of a pullback or a drop in the share price. This is because investors may have already priced in the positive news, and any deviation from those expectations can lead to a correction.

      Additionally, it's important to consider the company's future forecasts. A poor forecast, even if the current earnings report is positive, can negatively impact the stock price. Investors often focus on the company's outlook and growth potential, so a weak forecast may raise concerns about the company's future performance and lead to a decline in the stock price.

      By incorporating market expectations and future forecasts into your trading strategy, you are taking a more comprehensive approach to evaluating a company's financial health and potential for growth. This can help you make more informed investment decisions and avoid potential losses.

      However, it's important to note that investing in the stock market carries inherent risks, and past performance is not indicative of future results. It's always advisable to conduct thorough research, diversify your portfolio, and consult with a financial advisor before making any investment decisions.

      Please let me know if there's anything else I can assist you with!

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