Trading the headlines in this market can make you sick to your stomach.Is Russia invading Ukraine… or not?Is inflation bad for stocks… or good?Will the Fed raise rates too fast… or too slow?Every day, there’s a new angle being spun by the mainstream media…And if you ask me, it’s all just noise.Yes, these things can move the markets.But I can’t help but watch these intra-day swings and shake my head…Because I’ve got a tool to trade the markets that’s 100x better than any headline.
The Most Important Event and the Right Way to Trade It
See, I’m not a day trader. I don’t look to make gains in a matter of hours (though I’m not opposed to it).I know there’s nothing solid behind these quick swings. They change from day to day.Instead, I focus on a single event that happens with stocks every quarter that goes beyond the noise and gets to the foundation of any company…The earnings announcement.These are the most talked about, most anticipated, and most traded events for any single stock.So it shouldn’t be a surprise that I have an entire strategy based around this single event.But what likely will surprise you is how it works.I mentioned it on Monday, when I showed you that trader playing Cameco (CCJ). They didn’t gamble on the event itself, but jumped in after a solid earnings beat and nice price jump in the stock.Many traders see that initial move, and think they missed the trade…I’ve heard it over and over…
“Chad, why didn’t you tell me to buy Tesla yesterday, before it was up 10%?”“Chad, you’re a day late. Sorry.”“I think we missed this one. The stock is up over 30%.”
And I get it. I really do.I know the excitement and temptation that comes with those big overnight winners.But gambling on a single event is NOT how you make money long-term in the stock market.You do that by developing a proven strategy that delivers in all types of markets. And that’s what I did with the earnings announcement.So we trade the earnings event, we just do so after the earnings are released, not before.This makes a world of difference.With this simple change, we’re not gambling on what the company will say, or how the market will initially react.I’m waiting until all that data is out on the table for investors to digest. We look at how they react, how the company did, and then compare it to historical events for the stock.These earnings events occur four times a year, for every single U.S. listed stock.Each one can be a great opportunity to jump in after the earnings are laid out. Thousands of opportunities throughout the year.But with my strategy, you don’t need to trade nearly that much…
526% in 3 Days AFTER Earnings
In a recent interview with our publisher, Chris Cimorelli, I showed how I narrowed down the pool of stocks to trade on earnings to just a small handful.And we narrow down the list even further, by only trading a special signal that occurs after these stocks report earnings.We go through it all — from how I developed the strategy, to how it fits onto a simple calendar.And I show how it’s led to winners like 100%, 182%, and 200% all in just over a month.Plus, when accounting for half-positions, we’ve scored gains as high as 438% in five days, 465% in 10 weeks, and even 526% in just three days.But, if there’s one thing I want to get across today, it’s that you don’t need to gamble on earnings for big, short-term winners.If your goal is to make money, then click here to check out this video.I guarantee, after you watch this, you’ll know that trading a stock after earnings is a 100x better way to make money.Regards,
Chart of the Day:A Perfect Example of What Chad’s Saying
(Click here to view larger image.)
There are a few things worth talking about on the Shopify (SHOP) chart…One, the stock is down about 60% in four months. It, like a lot of other tech stocks, has really suffered from the recent rout.Two, we’re seeing positive divergence on the MACD and RSI indicators. That could mean we’re close to a bottom in this beaten-up name.But third, and most importantly, is what happened yesterday…Shopify reported earnings that beat estimates. It beat on earnings per share, revenue, and sales.So why did the stock fall 18%?The company cautioned it could see lower revenue in the next quarter or two.This is exactly the kind of thing Chad’s talking about. If you bet on SHOP before earnings, you could’ve very well been right…Except for one little piece of bad news that told the traders and algorithms to panic sell it to oblivion.Using Chad’s system, you would’ve avoided this loss entirely.Whether Shopify bottoms here or not, it’s irrelevant when you’re using Chad’s strategy. You’re only trading the top stocks, with the strongest track records of performing well after a special earnings signal.Either way, I think SHOP is due for a bounce here, along with a lot of other tech stocks, based on the technicals alone. Do with that what you will…Regards,
