In this episode, Brian Montes discusses the hazards of trading or holding stocks just before earnings announcements. He emphasizes that as a swing trader, it is important to not hold over earnings due to the uncertainty of how the stock will react and the potential for large drawdowns.
Brian provides examples of recent earnings reports from companies like Meta, Disney, and Plantair where despite solid results, the stock prices dropped significantly. He highlights the importance of being aware of the earnings date, following a disciplined trading strategy, and keeping loss positions small to stay profitable as a swing trader.
Episode takeaways -
As a swing trader, it is important to not hold stocks over earnings due to the uncertainty of how the stock will react and the potential for large drawdowns.
Even if a company reports solid earnings, the stock price can still drop if the management team provides a cautious or slightly negative outlook for the upcoming quarter.
Being consistent in your focus on risk management and keeping loss positions small is the best way to become and stay structurally profitable as a swing trader.
Avoid trading over earnings to minimize the risk of overnight gap downs, which can occur when unexpected events or negative news impact the stock outside of regular trading hours.
Stay informed about the earnings date of the stocks you are trading and consider it as part of your analysis before entering a trade.
Do you have a question you want answered on the podcast? Email your question to
[email protected]!
---
Send in a voice message: https://podcasters.spotify.com/pod/show/brian-montes5/message