How would you trade during Earnings Season?

Earnings season is a good gauge on how well or bad the company perform. However, one quarter or half yearly earnings results does not necessarily mean that the company is performing well all the time ir performing bad all the time. We need to look at historical performance of 5 or 10 years to see if the earning results truly reflect the life or death of a company.

I strongly believe that during the Earnings Seasons, it wiĺl give me a roughgauge on whether to increase or decrease my investments. Earnings report on why or how the company is doing plays ian important factor. For example, EV industry are badly affected by the Covid-19,  manpower resources, parts shortage, etc. Personally, many of you would agree that EV is the future of motor industry given the rising costs of Oil and Gas and climate change. Hence EV has a strong future of leading upwards as more countries are producing and buying EV cars.

For Tech stocks or consumer goods, it is an important and necessity in our life to have gadgets and consumer goods. Hence tech stocks and consumer goods stocks will constantly be rising. Earnings results are good for you to make decisions to review and restrategise. 

I will buy more during the dip, hold some and sell off some to gain profit and the cycle goes on. In this way, I have made decent profits while keeping some for dividends payout. 

You need to ask yourself if you will be buying more before the earnings results or after the earnings results.

Happy Investing :)