The steady cadence of earnings reports introduces heightened volatility—often triggering rapid, sometimes disruptive, price swings.
The Earnings Run Strategy
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Identify a Strong Candidate:
Look for companies with a consistent history of outperforming earnings expectations. Prioritize those forecasted to beat analyst estimates in the upcoming quarter. A great starting point is the
Zacks Earnings Calendar.
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Mark the Date:
Confirm the company’s scheduled earnings release using the earnings calendar.
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Chart the Setup:
Two to three weeks before the earnings date, review the stock’s chart. If it’s trending upward or recovering from a dip, use the
Risk Control Calculator
to determine your optimal position size.
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Enter the Trade:
Buy the calculated number of shares. Monitor price action daily. As anticipation builds, consider selling most or all of your position to incoming buyers just before the earnings announcement.
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Ride the Final Surge (Optional):
If you held onto a portion of your shares, wait for the earnings release. If the report is positive, a final price surge often follows as investors react to the news. Sell the remainder into this momentum.
For additional scheduling insights, visit the
Yahoo Finance Earnings Calendar.
⚠️ Important Disclaimer
Earnings-based trading can be highly volatile and is not suitable for all investors—especially those new to the markets. While the strategy outlined above seeks to capitalize on price momentum, it also carries the risk of sharp reversals, missed expectations, or unexpected market reactions.
Always use a clearly defined stop-loss or exit plan to protect your capital. Never invest more than you can afford to lose, and consider paper trading or backtesting before committing real funds. Risk management is not optional—it’s the foundation of long-term success.