Identifying Great Earnings Trades
On Friday we had another great earnings eruptions trade on TTD. It hit our entry point and cruised 10% higher the same day. Another great earnings trade after the announcement. We are still holding a larger swing trading position using the 3 Stocks to Wealth strategy and up nearly 20% over the past couple trading days.
Over the past week or so several trading setups qualified and made great profits for those using our #1 short-term swing trade and day trade setup – the earnings eruptions trade. Meanwhile, other stocks turned over after a gap after earnings.
People keep emailing and asking what the difference is between a great earnings setup and one that is…… an underwhelming earnings trade setup on its face.
I don’t have a whole lot of time right now but here are some of the critical factors that make for a very profitable earnings trade setup that blows away other short-term strategies.
- A great long-term chart. This is probably the #1 overlooked factor. If they are not generating shareholder value over the years, why would fund managers jump in immediately to send the price skyward? You have to know what a good long-term chart really looks like.
- A great pre-market chart pattern. Our earnings strategy videos tell you exactly what we look for to get such a high win rate vs other earnings trading strategies.
- A superior earnings beat on both the top and bottom-line. Along with a big guidance raise. It needs to be big enough to qualify.
- The right float parameters, volume and industry is important as well.
I could spend the next 2 hours explaining the strategy rules in detail. Things you must know. But I already have a complete video training guide that will get you prepared for more great earnings trades coming up in the weeks ahead to nail a big trade at the right time.