
Earnings season is one of the most exciting times to be involved in the stock market. BetterTrades watches more than 20 stocks on this site to keep you abreast of company news and the latest earnings report. BetterTrades coaches are available to help students learn how to examine company earnings news and determine whether a potentially profitable trade is possible.
Each publicly held company is required to announce its financial welfare every three months. This is when the companies declare their dividends and expectations for the future, both long-term and short-term. The conjecture leading up to this time can be a potentially profitable time for those who study with BetterTrades and know the educated way to handle company earnings.
When a company announces its earnings, the price of its stock will sometimes shoot up like a rocket. Other times the stock will drop like a rock from a 10-story building. Other stocks will show very little reaction to the news. Students who have enrolled in the BetterTrades education program learn how the volatility or movement of the stock can be leveraged to make better trades. Sometimes the profit margin can be wide and the move can take place in a hurry.
BetterTrades also teaches its students that it makes sense to end a trade before the company announces earnings. Since a reaction to earnings can be significant – and often unpredictable – the BetterTrades coaches advise students to exit their trades before an earnings announcement. It's important to keep up with the earnings schedule for any stock in which you hold an active position. Failure to do so could potentially lead to a big loss.