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  • Add You - Earnings Season: To Hold Or Not To Hold, That Is The Question

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    it is to move against you.

    Most people, including most analysts, don’t really knows what is going to happen until the company releases their earnings. Sure, there are a lot of folks that will profess to be a genius at predicting

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    Holding a stock (day or swing) trade into earnings can very often lead to some fairly large profits. However, it can also lead to some very large disasters…so large that it just may be the last trade you ever make.

    When I was still an active day trader and now as moderator of Daytraders.com, I have witnessed both sides of this phenomenon from each perspective. I have lost big and was lucky enough to catch a few winners. Yet, after years of experience, observation and unscientific analysis of this practice, it is my opinion that I was just that…lucky.

    First of all, holding overnight or even a few hours during the day waiting for an earnings report has removed you from a pure day trader status to a swing trader. There are merits of both methods of trading, which is fodder for a future article. Moreover, I will mention, that as common sense would suggest, that the longer you hold a stock as a trader, the more apt it is to move against you.

    Most people, including most analysts, don’t really knows what is going to happen until the company releases their earnings. Sure, there are a lot of folks that will profess to be a genius at predicting

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    ill an active day trader and now as moderator of Daytraders.com, I have witnessed both sides of this phenomenon from each perspective. I have lost big and was lucky enough to catch a few winners. Yet, after years of experience, observation and unscientific analysis of this practice, it is my opinion that I was just that…lucky.

    First of all, holding overnight or even a few hours during the day waiting for an earnings report has removed you from a pure day trader status to a swing trader. There are merits of both methods of trading, which is fodder for a future article. Moreover, I will mention, that as common sense would suggest, that the longer you hold a stock as a trader, the more apt it is to move against you.

    Most people, including most analysts, don’t really knows what is going to happen until the company releases their earnings. Sure, there are a lot of folks that will profess to be a genius at predicting

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    ation and unscientific analysis of this practice, it is my opinion that I was just that…lucky.

    First of all, holding overnight or even a few hours during the day waiting for an earnings report has removed you from a pure day trader status to a swing trader. There are merits of both methods of trading, which is fodder for a future article. Moreover, I will mention, that as common sense would suggest, that the longer you hold a stock as a trader, the more apt it is to move against you.

    Most people, including most analysts, don’t really knows what is going to happen until the company releases their earnings. Sure, there are a lot of folks that will profess to be a genius at predicting

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    der status to a swing trader. There are merits of both methods of trading, which is fodder for a future article. Moreover, I will mention, that as common sense would suggest, that the longer you hold a stock as a trader, the more apt it is to move against you.

    Most people, including most analysts, don’t really knows what is going to happen until the company releases their earnings. Sure, there are a lot of folks that will profess to be a genius at predicting

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    it is to move against you.

    Most people, including most analysts, don’t really knows what is going to happen until the company releases their earnings. Sure, there are a lot of folks that will profess to be a genius at predicting such things, but I haven’t seen it. In fact, I have yet to see anyone really much more accurate, if any, than that famous sitcom parrot that used to pick stocks using the Wall Street Journal lining the bottom of his birdcage. Yes, I said parrot, as in, “Polly wants a cracker!’

    When someone asks me if they should buy such and such stock because they are about to release earnings, I always tell them the same thing, “As a trader, holding onto earnings may be the single most dangerous thing you can do.” I suggest that if you are not willing to hold that stock for the next three to four months and into the next earnings period, then you should avoid the trade. If you hold into earnings and it misses their numbers, you may forced to hold the stock until the next reporting period or selling it a big lost. Or it could mean holding into, yet, another earrings report, and the beat goes on. If that be the case, you are not tra

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