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March 12, 2010
Edited: March 13, 2010
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There are three ways to play Earning Beater Stocks
1. Buy10 to 15 days ahead of earning and sell before earning announcement - the winners will be 75% plus.
2. Hold over earning date and one will make average of another 5% for taking the risk - Winners 75% plus
3. Wait for some pull back after earning or buy next day on any dip and hold for next 5 to 10 days for average of 5% up side. winners 75%.
My figures show 85% win ratio - I used 75% just to have lower expectations. One is happier when the results beat the expectations. It is all in the numbers. Data does not lie. One can twist the data presentation.
MIDD went from 43 to 55 in 17 days and did not do much in next 3 days after earning. Mutual funds managers will dye for that kind of return in a whole year. The move was 25% in under 20 days. Can one find 5 trades in their portfolio in a whole year. One could have traded MIDD 2 more times for $5 to $10 profits in last 200 days. Please back test using the rules mentioned at step 1 to 3.
ACN is another stock with earning due later on this month. It has gained 4% in last 7 trading days.
Nothing beats using a stop loss for any whip saw. Please move your stop loss when stock moves up to protect profits. Please do your home work before investing your hard earned money. My ideas are just based on my research / opinion and I can be wrong.
Happy Trading - beats buy and hold for some folks.
