Very soon we will be in the earnings season | stockbee


Very soon we will be in the earnings season

Very soon we will be in the earnings season. As all of you know I have written extensively on this topic and detailed what is involved in it. If you really apply yourself , you can easily find 5 to 10 very good trades during earnings season. Trades which will give you anywhere between 20 to 100% plus returns in few months post entry. This is one method if you master, it gives you dividend 4 times in a year.

The trick in this is to prepare well in advance and think through what you want to achieve . Some traps people fall in to while trading earnings are:

1 Making it very complex. I have seen spreadsheets so complex to track earnings, that I don't know what the trader is trying to achieve. When the earnings spreadsheet was up I use to get so many request for adding column or information to it that it would have easily become 100 column spreadsheet.

2 Trying group collaboration. It does not work. If you want to trade this and want to really make money, forget depending upon someone to update the databases. Do it yourself. I do this entire thing without spreadsheet, I just write earnings next to symbols on a small pad and feed selected list in watch list for next day.

3 Searching for perfect sources of information. Please understand it is what it is. For retail traders there are no easily available and timely source of information. So within the constrains one has to innovate. There is sufficient opportunity to exploit in spite of limited databases.

4 Falling in love with a stock. A stock might show 10000% growth and if it is not surprise to market, it will not react or go down.

5 Not ready both mentally and in terms of method well before the earnings season. You have to do all the thinking and planning before earnings season, if you want to trade this method. Bull market, bear market earnings trade works.

How To Trade Earnings
How to trade earnings Part2
How to trade earnings Part3
Earnings and Bulkowski
Improving odds in earnings breakout
Earnings Season- Time to be very careful...
Earnings and Dan Zanger
Earning Surprise System for $1495
Trading Earnings Breakouts
Earnings Acceleration- Long Term Impact
Trading Earnings Breakout -Part1
Trading Earnings Breakouts -Part2
Trading Earnings Breakouts -Part3


Neal said...


Can you tell me what is included in the members area vs. the free portion of the blog?

Do you make trade recommendations or just a deeper analysis of your methods?

Great site by the way. One of the most useful I've found. I'm thinking if the free portion is this good, I can't imagine what the members area is like!


Pradeep Bonde said...

"Do you make trade recommendations or just a deeper analysis of your methods?"


Michel Lahaye said...

Neal, I thinks the member-area is (going to be) very usefull for me. At the moment I've got myself a membership but for now I'm still learning from the free blog to understand how things work before going actually in trades.

Pradeep, you mentionned in a post that it is a usefull thing to have the IDB- newspaper. Is this one?

Investor's Business Daily® MONDAY
Investor's Business Daily is not your traditional business newspaper. It's a comprehensive stock rating and investment system. IBD® provides fact-based ratings for all domestically traded stocks, and uses the proprietary CAN SLIM® approach to alert readers to stocks showing signs of strength. Includes subscriber-only access to ($295/annually)

Pete said...

pradeep- can you comment on entry styles-

on candidates- do you enter day of the episodic gap near the close, the following day, wait for a pullback entry or range to id lower risk, piece in over time, etc?


Neal said...


I know you directed this at Pradeep but I do know this is the paper he is referring.

I'm a daily subscriber to IBD and must say it's one of the best investments I've ever made. You can visit their website,, for more details. Also, O'Neil's book "How to make money in stocks" is a must read in my opinion.

I definitely agree that the free section has lots of great content to digest. The IBD 200 method is pretty awesome and I've had good results following the system he details in the blog.

I wish you success in your investing endeavors.


wimpyVO2max said...

Everything you wrote about PEAD makes sense. I'm putting real money on your method -- I bought JOYG today. It's up +7% today on earnings and strong 2008 guidance. Company has climbing sales overseas due to weak dollar. It's just under $60. Lehman upgraded to $75, but short term I'm looking for a retest of the July $65 high.

It was hard for me to do this. I've been brainwashed to never chase breakouts!

Pradeep Bonde said...


Entry is intraday or next day.Good EP do not have pullbacks.

JOYG earnings are not really the kind that will lead to PEAD.
I only buy where there is major surprise or acceleration of earnings.

Andy said...

Hi Pradeep:

I've been following your blog for a while now (got hooked when I read your bit about how chartists behaved like members of a true!).

Anyway, I have taken my first earnings breakout trade since reading your blog. LNN seems to fit the criteria. With a little luck it will pay for my subscription to your members area! ; )

Thanks for the great site.

Pradeep Bonde said...

Yes LNN earnings doubled, sales up around 50%, low float.
Sector trends also favorable.

Andy said...

Amazing how exciting earnings season becomes when you discover a way to apply method to the madness. I decided high float breakouts like RIMM and ACN were good ways to diversify the overall "earnings breakout portfolio" I've implemented. So far I've got LNN, ACN, BYI, and RIMM. Of my cash allotment for this portfolio, these picks account for 33% of the total.

I've got a race of sorts going between earnings breakouts and ibd 200 plays. Will be fun (and hopefully profitable) to see how it turn out once earnings season has come and gone.

Just finishing up my Double Trouble watch list and scan parameters. Once I've got that laid out, it will be a three legged race in 2008.