Genting, China Aviation Oil, Wilmar these few days have something in common. They gap down after reporting earnings miss. For some, you see your profits wiped out in 1 day.
I always explain in my class not to hold your stocks through earnings. This is from my experience trading in US Market for the last 8 years. In the past, I like to speculate if a stock will have good earnings and buy in just before the earnings announcement so that I could profit from the Gap Up. There was one time my bet was wrong and I lost US$25,000 in one night. It taught me a valuable lesson!
As a trader who constantly makes money, we don't like RISK. We love certainty only! And holding position over earnings is like holding a time bomb in your hands! Unless of course, you invest stocks like Warren Buffett, for the long term. But for those that can't stand seeing your profits vanish, why don't you profit take when you already make money from the stock run-up before earnings? Just get out first!
There are opportunities to play again, after earnings. This is one valuable TIP I am going to give you in investing. In my course, I teach investors how to play earnings before and after, which I think is a giveaway gift from the market to make you great money because every stock got their characteristics before and after earnings!