You don’t mind playing in the mud if you’re like me. It’s a dirty game when you’re playing chat pumps, fugazi stocks, and low-float face rippers…
That’s why I like to class it up every now and then. And talk about “real stocks.”
And with it being earnings season, there’s plenty of opportunity on the table.
The problem is most folks trade earnings like degenerate gamblers. They’ll take trades right after the earnings are announced, like they’re a 5-star analyst, knowing what it all means.
Trade earnings like that, and you’ll eventually swear them off for good.
Too bad…because there’s a lot of meat on the bone if you know how to play them correctly.
And today, I’m going to share with you an awesome setup on how to play them that won’t give you a panic attack, make you want to kick the dog, or send you to the grave early.
I call it the stress-free way to trade earnings.
Here’s what it’s all about:
This swing trade setup works best on a stock that’s recently had earnings and is grinding higher during the trading day.
What I Want To See:
- A slow and steady move higher
- The stock is pushing near its 52-week highs
When To Look For It:
- Ideally, you want to wait until after 2 PM ET
- You want to try to enter on a breakout above its resistance level
Now, you might be thinking it’s too simple to work.
You probably missed out on Tesla’s latest earnings run if you think that.
On the last day before it announced earnings, Tesla was trading at $144.43…the following day, the stock gapped to nearly $160 per share…then it opened the next day at $162 …grinding higher the whole day.
In the afternoon, it was trading near $179…which would have been a solid entry for a momentum swing trade.
The stock rallied an additional 17% from that entry-level, hitting a high of $210. It has since pulled back with the rest of the market, but I would be surprised if it doesn’t go higher from here.
The same setup played out on Netflix in January. After breaking above its earnings high level of $342, the stock rallied to a high of $379 just a few days later.
These moves might not be as impressive as a 200% penny stock rip-roaring on fake news. But I know many people who trade “real stocks” with options, and those things can fly if you know how to play them.
Plus, I think it makes sense to pay attention to this setup because there are still a few hundred earnings releases still left.
Since these are “real stocks,” they tend to flow with the market. For example, Tesla’s and Netflix’s moves occurred when the market was hot.
It has since cooled off some.
So you need to keep that in mind.
Most traders can identify when a stock has had good news…
What really trips them up is their timing.
There’s nothing more painful than being in the right symbol but not making money on it because your entry was bad or your stop was too aggressive.
If you suffer from this issue… I have good news for you.
But only if you’re serious.
It’s an ALL-DAY trading workshop starting at 8 EM ET on Friday, February 17th. My team and I will be hosting An ALL-DAY trading workshop. It’s your chance to see us during the pre-market, opening bell, afternoon session, and after-hours trading.
In that workshop, you’ll discover a tool we use to improve the timing of our entries and exits and how it can potentially lead to faster and bigger profits.
Joining this event is simple.
Lead Trainer, StocksToTrade