How to trade around earnings?

hedron said:
Does anyone have a rule dealing with earnings? Now, I'm not asking about trading earnings directly, that is on earnings day based on momentum. I hope that made sense. But it seems that the best technical setups (on a daily, weekly or even hourly) always exists around earnings time. I do not hold through earnings unless I intend on holding the stock for more than a year. But I've missed the only good trades I've noticed this year because of that rule, but then, in the past, when I violated that rule I got my ass handed to me. Which is why I made the rule in the first place.

I'm only thinking now that maybe I should reduce my list to only stocks that I would consider holding for more than a year. That sounds like a good compromise. I'm just wondering if anyone has any insight they want to share.
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I've got the same rule. Since I don't trade individual stocks, I'm not so much concerned with earnings, but the same applies to Fed announcements (FOMC). Too often have I seen the volatility hit my stop and then run the anticipated way. So, I have this rule in place to close all short term positions when we're approaching FOMC, like tomorrow. There will always be great opportunities, so I'll just have to wait a day or two.
 
GreedAndFear.eu said:
I've got the same rule. Since I don't trade individual stocks, I'm not so much concerned with earnings, but the same applies to Fed announcements (FOMC). Too often have I seen the volatility hit my stop and then run the anticipated way. So, I have this rule in place to close all short term positions when we're approaching FOMC, like tomorrow. There will always be great opportunities, so I'll just have to wait a day or two.
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I feel the same way (if I'm swing trading) as I consider FOMC or NFP to be the earnings of US indices.

If you are daytrading though, these days can offer improve volatility intraday which is a real blessing for daytraders.
 
Yeah, earnings are a crapshoot at best. I used to think that I could trade around earnings but since realized that’s not a great way to make money. You would have to have insider knowledge to make it work, but the SEC frowns upon that…
 
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