Trading Near/on Earnings Report Date

[JLJ 10]

I read somewhere that because stock prices may not behave normally, you shouldn't buy during 'earnings season." In my limited experience I've sometimes done well buying - minutes after the opening bell - stock from a company who just released good news early that morning. Obviously if they have a bad earnings report - of if they have a good report but their stock price isn't climbing - I don't buy. Am I missing something? Is it still to risky to buy then?

[brownsfan019 17]

Basically during econ reports - whether individual stock earnings info or major market info - all bets are off. It's suggested that rookies stay out of this time b/c you can blink and lose a fortune if wrong. If you enjoy trading when things are really moving, then trading around news is a great way to go.

[JLJ 10]

brownsfan,

Does that include announcements about interest rates, unemployment figures, etc? Should we avoid trading whenever any such announcements are expected?

But if the news is good, isn't that a good time to trade?

[brownsfan019 17]

brownsfan,

Does that include announcements about interest rates, unemployment figures, etc? Should we avoid trading whenever any such announcements are expected?

But if the news is good, isn't that a good time to trade?

 

Yes, it includes all major economic releases.

 

News being good is relative but if you can make it work for you, it's a great way to make some quick money.