Earnings season is four times a year, and that represents four times a year you can avoid disastrous results for your stock market portfolio.
The worst thing you can do is try to predict the direction a stock will take following the release of its earnings report. You have to be able to predict a company’s earnings per share, their revenue per share, first and foremost, and then you have to accurately predict earnings guidance in the future. But even if you get all of that, guest what, you have no way of knowing whether the stock’s price will reciprocate the stock’s earnings report with like price action. Earnings season is four times a year, and that represents four times a year you can avoid disastrous results for your stock market portfolio. The worst thing you can do is try to predict the direction a stock will take following the release of its earnings report.
You have to be able to predict a company’s earnings per share, their revenue per share, first and foremost, and then you have to accurately predict earnings guidance in the future. But even if you get all of that, guest what, you have no way of knowing whether the stock’s price will reciprocate the stock’s earnings report with like price action.