Strategies for Identifying Profitable Trades During the Current Earnings Period

Strategies for Identifying Profitable Trades During the Current Earnings Period

Ready to nail those big earnings season profits? Here's your ticket to trading success - follow these three easy steps:

Step #1: Run the Earnings Predictor

Crack open the Earnings Predictor and find stocks reporting earnings in the upcoming 7-14 days. Don't forget to apply filters like:

• High Trading Volume (1M and above) for greater liquidity.
• Top Companies (Large & Mega Cap) to spot the big hitters with massive market influence.
• Middle-to-High Price/Earnings Ratio to target growth drivers.
• Sway Romper (Beta > 1.0) for more volatile stocks offering potential for greater returns.
• RSI Readings for oversold or breakout setups.
• TrendSeeker® and the house opinion (our trend and momentum indicators) to get the scoop on market sentiment.

Step #2: Sort and Peep Smarter

Now that you've got your list of candidates, take a smarter approach to sorting and scanning:

1. Sort by Volume - to set your sights on highly-traded stocks.
2. RSI - keep an eye on overbought or oversold conditions hinting at possible reversals.
3. Beta - focus on stocks demonstrating high volatility for the potential of massive moves.

Bonus tip: Give visual scanning a whirl using tools like FlipCharts - quickly spot patterns or setups that grab your fancy.

Step #3: Plot Your Plan with Expected Outcomes

When you find a stock tickling your trading fancy, delve into the Predicted Outcome to lay out your game plan:

1. Get the lowdown on Predicted Outcomes: This arrow-straight statement forecasts the range of price movement around earnings announcements.
2. Make your move:
3. Take a gander at potential risks compared to rewards.
4. Eye up possible breakout zones where stocks might spike.
5. Set targets based on the predicted outcome range for optimal profits.

Now you're all set to go hunt for sensational earnings trades!

Eager for more insights? Our Premium membership unlocks advanced screeners, trading cues, and deeper insights - perfect for serial traders preparing for earnings season. Dive in with a free 30-day trial.

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(Please note: Our house Insights did not hold any positions, directly or indirectly, in any of the securities mentioned in this article on the date of publication. All information and data in this article is intended solely for informational purposes. For more information please view our Disclosure Policy here.)

For an enhanced understanding, learn how a clever-clogs approach to earnings screening enhances your trading opportunities during busy earnings seasons.

When deploying an earnings screener, take note of the following strategies to yield superior earnings trading opportunities:

1. Spotting Stocks to Screen: Filter for stocks reporting earnings within the next 7-14 days.
2. Applying Effective Filters: Use criteria like:
3. High Trading Volume (1M and above) to maintain market liquidity.
4. Top Dog Companies (Large & Mega Cap) to zero in on major players.
5. Middle-to-High Price/Earnings Ratio to target growth-oriented stocks.
6. Sway Romper (Beta > 1.0) to suss out volatile stocks with the potential for bigger returns.
7. RSI Readings to pinpoint oversold or breakout setups.
8. TrendSeeker® and Barchart Opinion (trading indicators) to capture market sentiment trends.
9. Smarter Sorting and Scanning:
10. Sorting Criteria:
    • Volume: Prioritize actively traded stocks.
    • RSI: Look for overbought or oversold conditions that might signal reversals.
    • Beta: Focus on stocks with higher volatility, as they may display bigger price swings.
11. Visual Scanning:
    • Utilize visual scanning tools, such as FlipCharts, to swiftly zero in on patterns or setups that appeal to you.
12. Solid Strategy Planning: Plan your trades with specific precision by leveraging expected move data:
13. Understanding Predicted Outcomes: The anticipated range of price movement around earnings announcements.
14. Set Targets: Consider potential rewards and risks while identifying potential breakout zones for enormous swings.
15. Exploit the Spikes: Adjust your targets to align with the expected outcome range to maximize profits.

By following these steps, you can boost your trading opportunities during earnings season by harnessing the power of earnings screeners while keeping a keen eye on expected price movements.

1. To find promising stocks for earnings season trading, run the Earnings Predictor and filter for stocks with high trading volume, top companies, middle-to-high Price/Earnings ratio, Sway Romper (Beta > 1.0), RSI readings, and TrendSeeker®.
2. Once you have your list of candidates, sort them by volume, RSI, and beta to focus on highly-traded and volatile stocks, then use visual scanning tools like FlipCharts to spot patterns or setups that interest you.
3. When you've found a stock that seems promising, delve into the Predicted Outcome to lay out your trade plan by considering potential risks, breakout zones, setting targets based on the predicted outcome range, and adjusting targets to align with the expected price movement range to maximize profits.
4. To uncover more insights and advanced screeners, consider a Premium membership that offers trading cues and deeper insights, suitable for seasoned traders preparing for earnings season.

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