Strategies for Earnings Season

Earnings season is one of the most anticipated parts of the financial year. This season refers to the months when most companies release their quarterly reports which are usually in January, April, July, and October. Experienced investors know that several companies usually release these reports on Fridays and only after markets close.

The main reason for this is because news and reports tend to affect a company’s stock, so they do this to minimize any potential losses. So here are the tips to prepare you for the earnings season.

Go Through Your Company’s Previous Statements

One of the most vital tools you have is your access to the company’s previous earnings and statements reports. If they have been talking about the increase in sales throughout the year and everything else in the stories were positive, it is an excellent indicator of how the companies next earnings report will be and vice versa.

Use Alerts  

One of the most useful tools out there is the stock alert. Get one of the best alerts and add the company the list and you will receive an alert when anything comes out. Also, the alert should have an earning calendar, go there and check when your company of interest will release their earnings report.

Community is Important

It is not always easy to assess or measure the market sentiment, but you can follow the discussion and observe the trends in the investment community. Use investing forums to see what others think about a particular stock or more. You can also follow and join the conversation on sites like Reddit, where several investors gather.

Follow one or more Pundit

Whether you just created your first portfolio or have been investing for a while, you need to reinvent the wheel. You can’t figure it all by yourself because there are several pieces of information out there that can take you more than a lifetime to sort through. One of the best ways to get quick answers even without having to ask is to follow pundits. Find people you feel you can trust and whose interest align with yours and follow them.

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