Earnings Strategy - Make money in one day

This is one of the most brilliant strategies that I have formulated, and it has really short time from in which you could in fact create up to 40% or perhaps even more profit.

Companies release earnings every quarter - or four times - in an year. These include details regarding revenue, costs of production, net income, profit, debt and so on.

Earnings of a company is one of the greatest influencers of its stock in the micro level.

Using this to your advantage, you could create a lot in just a day.

These are the following steps:

• Search up "Nasdaq Earnings calendar" or [Whichever Stock Exchange] " Earnings calender" and then make a note of the largest companies that are holding their earnings.

• Research regarding these companies online.

• Check the latest news and consider whether the current affairs would make it favourable for this stock to increase or decrease(For example, lockdown in all countries was favourable for online businesses like zoom, etc. The Russia Ukraine war was favourable for weapon companies such as Lockheed Martin)

• Do some fundamental analysis on the previous earnings of the company.

• Conclude whether it is likely that the stock will surge or plummet.

• Accordingly, Buy or short the stock prior to earnings.

Of course, you don't have to be right. There is a 50% probability that you are wrong, and hopefully the amount of research and analysis that you did reduces that till 40%(Its difficult to predict beyond that). It is necessary to note that negative news spreads faster than positive, so if you short a stock, it can be really beneficial because you can always be sure if a company is a sinking ship, but you can really never know if its a rocket that will take off and surge.

Additionally, If you get it wrong, waiting just one or two days before closing the trade would lead to fewer losses. This is because, after the sudden hype of the earnings (whether the earnings were good or bad), within a few days the dust settles and the stock that surged really high suddenly comes down, or the stock that plummeted suddenly recovers for a short while.

Keep investing