Over the years, I’ve learned that some of the best trading opportunities don’t come from guessing what a company will do before earnings. They come from reacting to what the market has already decided after earnings are released.
Earnings are one of the few events that can instantly change how investors perceive a company. When results are far better or far worse than expected, price can reprice aggressively in a short period of time. That initial reaction often creates strong momentum that can continue into the next trading session.
This strategy is built around one simple idea: let the market show its hand first, then trade in the same direction.
Instead of predicting outcomes, I wait for confirmation in the form of a large post-earnings move. Only when that move meets specific criteria do I take a position.
Post-Earnings Momentum Strategy
The $5 Portfolio
Bullish & Bearish Candlesticks
Long-Term Investing Vs. Trading
