Divergence Trader

Trading with Earnings Releases

Francis Chua
Publish date: Wed, 26 Nov 2014, 03:35 PM
Francis Chua
0 10,452
To find the truth, look below the surface

Do you trade or contra before company release earnings report?

I find that this argument for or against getting out before earnings is a never-ending conflict.

There are times I have gotten out before earnings and others when I held. There are times when I benefitted from the earnings but at times I have been hurt by the earnings (more often than benefitted).

But now I tend to get out before earnings report.

Why GAMBLE?

If I have to trade based on earnings report, I might as well visit a casino and bet on "Big" or "Small". The returns will be faster and exciting.

But overall, if you want to run your trading account as a business, I think it is generally better to get out.

Have no regrets.

Regrets are such a useless, corrosive force.

Be happy with your gains and move on.

Below are some examples that trading on earnings report may hurt your trading account more than benefit.

OSIM 3Q14 Net profit down 27.8%

Ezion 3Q14 Net profit up 29%.

OSIM earning results

Ezion earning report

Best wishes,

Divergence Trader Francis

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