Small cap earnings will be in focus next

Next week onwards the earnings focus will slowly shift to small caps. This is where you will find lot of opportunities. The small caps are poorly covered by analyst, many of them have no analyst earning estimate, many do not offer guidance or pre announcement. Many of them are novice in the great Wall Street earnings game, so they are yet to learn earning manipulation. This creates for an interesting trading situation.

Over reactions to earnings are very common in the small cap world. Every earning season a handful of companies from this group will have blowout earnings and then they are discovered by the market. If they have low float then the mixture of blowout earning and low float acts to propel them several percent higher in few months. Many of today's well known stocks like NTRI, HANS, GROW, IAAC, etc were in similar situation few years back.

Some of these are just one earning season wonders, some have the staying power like HANS, NTRI, GROW etc as they continue to show good earnings for next 6-8 quarters and end up making several hundred percent moves. Season of opportunity for earning traders starts next week.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

2 comments:

Unknown said...: Here is one reason why it's too risky holding a long position into an earnings announcement on small cap, low float companies:
INPH - high today $13.73
Trading AH for $8.65

Glad I was stopped out of this one several days ago.; Oct 26, 2006, 4:29:00 PM
Pradeep Bonde said...: It works both ways. 67 days ago it had very good earnings. It has very low float. So from 6.50 it went to 14 in less than sixty days.

There were enough signs of trouble before it plunged today. Extreme momentum leads to reversal.; Oct 26, 2006, 4:39:00 PM

404

Recent Articles