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Deron Wagner is the founder and portfolio manager of Morpheus Trading Group. His daily focus is managing and trading the Morpheus Capital Hedge Fund, which he founded in April of 2004. He also teaches his swing trading strategy with The Wagner Daily newsletter, which provides exact entry, exit,... More
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Morpheus Trading Group
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Morpheus Trading Group - swing trading blog
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Advanced Technical Analysis of ETFs
  • How To Trade Around Earnings Reports With Maximum Profits And Low Risk 0 comments
    Mar 26, 2013 6:16 AM | about stocks: LNKD
    The challenge of trading around quarterly earnings reports

    When I first began my trading career about 15 years ago, I had no idea how to manage trades that coincided with the quarterly earnings reports of various stocks. Whenever I simply held my positions through earnings and hoped for the best, I was somehow wrong a majority of the time, and the stocks gapped sharply against me. Conversely, I found that I missed out on a lot of potential profits whenever I simply stood aside and let the stocks react and do their thing after earnings.

    Fortunately, many years later, I discovered a system for trading around earnings reports that enabled me to have minimal risk, while still capitalizing on the majority of the gains. It became the best of both worlds, and that is what I want to share with you in this article, using an actual recent trade example.

    How we traded LinkedIn Corp ($LNKD) for a total 22% gain around its Q1, 2013 earnings report

    Throughout January and February of this year, we made two separate swing trades to buy LinkedIn Corp ($LNKD) in The Wagner Daily newsletter. The first trade netted a gain of 11%, from our predefined entry and exit points, over a 14-day holding period. The second trade also scored an 11% gain, but with just a 9-day hold.

    What's notable about that total 22% gain with an overall holding period of 23 days is that the trades were madeahead of and immediately after the quarterly earnings report of $LNKD.

    In this 4-minute YouTube trading strategy video, we walk you through the Earnings Trading Technique that enabled us to lock in these solid gains, despite both trades being centered around earnings reports.

    Hope you find the video to be educational and informative. As always, just drop me a line if you have any feedback or questions.

    To learn more about our swing trading methodology, visit MorpheusTrading.com.

    Original Source

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: LNKD
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