I emphatically say "otherwise", i've made a very successful career doing what you say is foolish.
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How to trade earnings reports?
- Thread starter thatSAMazing
- Start date
I emphatically say "otherwise", i've made a very successful career doing what you say is foolish.
Hey easyguru. That was an absolutely phenomenal reply. I learned a lot and I thank you!!!! I only wish I could learn more things like this on a daily basis!
So does anyone know of the fastest way to get these reports? Is the company websites press release the first to get the info usually? Is that where the newswires get the info that they report?
If you are going to try and daytrade the news (earnings), I would highly recommend against it. I know several guys who have been trading earning and earnings only based on the Bloomie and it took them 1-2 years of losing before they became fast enough physically (on the keys) and quick enough mentally to put it all together.
However if you are looking to swing trade earnings where speed isnt AS big of a factor, then thats another story. That you could probably work
But to daytrade earnings, there is no better way to lose and lose a lot quickly than to try and compete with the sharks.
However if you are looking to swing trade earnings where speed isnt AS big of a factor, then thats another story. That you could probably work
But to daytrade earnings, there is no better way to lose and lose a lot quickly than to try and compete with the sharks.
Quote from thatSAMazing:
So does anyone know of the fastest way to get these reports? Is the company websites press release the first to get the info usually? Is that where the newswires get the info that they report?
Well, say I was trying to trade the earnings of companies I follow regularly but did not want to get into ahead of earnings. Companies I can comfortably predict what the earnings will do to the price. Where is the fastest place to get the numbers from? Is the company website faster than the newswires? Where do the newswires go to get the reports?
I'm telling you, it doesnt matter if you follow the companies or not, you arent going to be able to compete with guys who daytrade earnings as their bread and butter. I guess you will have to find that out on your own, as 100's of others have.
I would recommend getting a Bloomberg terminal if you are die hard about this, but I think (I dont know for sure) this will cost you like $4000 a month.
I would recommend getting a Bloomberg terminal if you are die hard about this, but I think (I dont know for sure) this will cost you like $4000 a month.
Quote from thatSAMazing:
Well, say I was trying to trade the earnings of companies I follow regularly but did not want to get into ahead of earnings. Companies I can comfortably predict what the earnings will do to the price. Where is the fastest place to get the numbers from? Is the company website faster than the newswires? Where do the newswires go to get the reports?
I appreciate the advice and after a few trys may end up taking it. However, do you know the answers to the above questions? Do you know where the newswires get the info and who the first to receive it is? When the companies release their earnings, where is the first place they are sent?
Quote from easyguru:
.........
Each quarter when companies report their earnings, there are usually a handful of companies whose earnings are either surprisingly good, or shockingly bad. You can immediately recognize these companies by the post earnings announcement jump or plunge in their respective stock prices.
If you look at the stocks which had surprisingly good or bad earnings three quarter down the line you will notice that the stocks that had positive earnings surprises continued to go up, on average. ...
not to be argumentative but CSCO last quarter bombed after great quarters of growth and ORCL did the same earnings report implosion last year after steady quarters of growth.
I mention these 2 stocks because they are among the most widely followed and traded stocks.They also point out that bad news or growth slowdown can happen without warning and you will only find out this news at earnings time.Sure you can make a ton off earnings if you can predict the future but otherwise it can be an expensive and not a prudent investment strategy.
Even more chilling example is CROX...This is the hi growth fad company that was going gangbusters all teh way up to their earnings report in oct or whatever.... surprise:bad report, and the stock got chopped in half in 2 days...from 75 to 40...
CSCO bombed last quarter because they didn't up their guidance which is what the market was expecting. They then went on to blame the state of the economy in the conference call which sent all tech tumbling.
Please though, lets try to keep this thread on topic. This is not about whether trading earnings is good or bad. It is about how to best go about doing it. Does anyone know the first place that quarterly earnings are sent? Is it the website? Where do newswires get the numbers that they report and is it possible to go there directly.
Please though, lets try to keep this thread on topic. This is not about whether trading earnings is good or bad. It is about how to best go about doing it. Does anyone know the first place that quarterly earnings are sent? Is it the website? Where do newswires get the numbers that they report and is it possible to go there directly.
Dear Sir or Madam
Nothing at all wrong with your agenda. I do however want to point out that your questions about where the information goes first are going to be unproductive.
The critical information is not the earnings themselves but what the best analysts think and what they do before and after they learn the news (ratings). This thought process and the comments they provide to their customers are what really drive the stock, because the players who have enough juice to move it are not retail traders, but institutional trade desks, professional speculators, and funds who pay to get the information before you (the retail trader) get it. This is why people try to get in on the phone conversations that take place prior to the announcements, and why it is imperative to learn about the analysts (who they are, who the best ones are, how many are following the company and what the "consensus" is). This is one of the key elements of finding an edge trading earnings.
Part II of trading earnings is knowing the earnings history of the company you are following and being able to characterize what has happened at and around previous earnings report dates. What you have to do is to develop a model that gives you some idea of what to expect.
Part III is learning to evaluate outside data so that you can get some idea (so that you can deduce) what the professionals are doing. Fact is the pros get set up way ahead of the retail crowd. They position themselves based on info they get ahead of you, they sniff out the best opportunities ahead of the retail traders and they are able to put more resource into it (deeper pockets) so they can wait out the bumps in the road while their trade plays out. Don't know if any of you will take the time, but the most useful information about how the pros are setting up comes from looking at the options volume and open interest. After that one can (if they have the analytical skills) look at the chart and see where professionals are getting long or short on the outright stock or playing the volatility crush on the other end.
Now I am certainly not going to give up an edge to you simply because you ask for it. Not a chance. However I don't mind pointing you in the right direction. The rest is up to you.
As a final comment, you could go out and buy Ben Warwick's book "Event Trading". It does give a little bit of help with the logistics.
Good luck and Merry Christmas Newbies.
Steve
Nothing at all wrong with your agenda. I do however want to point out that your questions about where the information goes first are going to be unproductive.
The critical information is not the earnings themselves but what the best analysts think and what they do before and after they learn the news (ratings). This thought process and the comments they provide to their customers are what really drive the stock, because the players who have enough juice to move it are not retail traders, but institutional trade desks, professional speculators, and funds who pay to get the information before you (the retail trader) get it. This is why people try to get in on the phone conversations that take place prior to the announcements, and why it is imperative to learn about the analysts (who they are, who the best ones are, how many are following the company and what the "consensus" is). This is one of the key elements of finding an edge trading earnings.
Part II of trading earnings is knowing the earnings history of the company you are following and being able to characterize what has happened at and around previous earnings report dates. What you have to do is to develop a model that gives you some idea of what to expect.
Part III is learning to evaluate outside data so that you can get some idea (so that you can deduce) what the professionals are doing. Fact is the pros get set up way ahead of the retail crowd. They position themselves based on info they get ahead of you, they sniff out the best opportunities ahead of the retail traders and they are able to put more resource into it (deeper pockets) so they can wait out the bumps in the road while their trade plays out. Don't know if any of you will take the time, but the most useful information about how the pros are setting up comes from looking at the options volume and open interest. After that one can (if they have the analytical skills) look at the chart and see where professionals are getting long or short on the outright stock or playing the volatility crush on the other end.
Now I am certainly not going to give up an edge to you simply because you ask for it. Not a chance. However I don't mind pointing you in the right direction. The rest is up to you.
As a final comment, you could go out and buy Ben Warwick's book "Event Trading". It does give a little bit of help with the logistics.
Good luck and Merry Christmas Newbies.
Steve