As the economy is on the cusp of what could potentially be the next “recession,” the current earnings season is kind of a big deal.
Over the next several weeks or so, publicly traded companies are scheduled to share last quarter’s performance with the market and their shareholders.
We’re going to find out the nitty-gritty about all of these companies…
Did they make or lose money? Was there growth or retraction? Did the value of these businesses rise or fall?
From my experience navigating the markets, one earnings report typically isn’t a trend-changing event.
Instead, it typically either stalls the current trend or accelerates it.
Stick to the Plan
Don’t get me wrong, there are cases of earnings causing drastic changes to a stock price… Sometimes they benefit, and sometimes they suffer.
But unless you have a strategy to trade specifically around an earnings release, to me the best recommendation is to stay the course of your trade plan.
If your trade plan is technical, stick with the technicals.
If your trade plan is fundamental, stick to the fundamentals.
The reason most traders struggle to find consistency and success is due to their own personal lack of discipline and consistency.
The market is always evolving, of course. And many believe that they should be evolving with the market.
But a timeless trade plan will work over time…
If you tweak something today to force a trade to work, it could eat you alive over the next six or 12 months.
You’ll sit there scratching your head and start tweaking your strategy again, which will ultimately only take you to a new level of frustration.
Prove It Out
So, stay true to your trade plan. And invest the time into proving your trade plan is profitable for the long term.
Test it in a simulated or paper style account before ever putting your hard-earned money in the market. You’ll thank yourself later!
If earnings season causes the market to become too volatile, there’s no harm in preserving your account value for calmer seas.
As I’ve shared with you before, “living to trade another day” is survival in this business.
Without that approach, it becomes gambling. And most don’t find sustainable returns gambling for too long.
You’re better than that!
Josh’s Latest Endeavor
Before I go, I need to invite you to a LIVE special event happening TODAY at NOON!
Josh Martinez is going to talk about how he uses his Chandelier Trader strategy to pinpoint precise entry and exit levels in the futures markets.
This brand-new professional-grade system is one that virtually anyone can use with minimal upfront investments…
We’re talking as low as FIFTY BUCKS! So, get in the know by joining Josh this afternoon.
Rules to Live By
“Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.” Martin Luther King Jr.
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.