Spring Cleaning before Earnings Season!

It’s time to spring forward, and I’m not talking about clocks!

It’s the first Monday of a new month and it’s looking like we’ll be treated to some favorable market conditions following a choppy March.

And if you find yourself stuck in some sideways trades, it might be time to clean them out of your portfolio!

Something big to watch is the upcoming earnings season.

Earning season is a great time to trade on speculation, it’s not uncommon to see certain stocks melt up prior to their earnings reveal.

And companies are more ambitious than ever this time around, many are posting big expectations to close out the first quarter of the year.

Now are all of them going to hit these expectations? No, probably not.

But that doesn’t matter! You can use pre-earnings hype as a vehicle to profits by selling into strength before an earnings announcement.

You can certainly hold through an earnings announcement, but a play starts to become more of a gamble at that point.

So if you are deciding to hold through an announcement, just make sure you aren’t overexposed in case the company you’re betting on falls short of it’s target.

Bottom line: Use the hype around earnings season as your ticket to profits!

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Trading Tip of the Day: When Trading Gets Psychological

Greg Guenthner

A lot of traders tend to give up before they ever start seeing profits.

New traders often throw in the towel after spinning their accounts for months. Others get discouraged after a big loss. And inevitably, a few swing traders wipe out their hard-earned profits on a long-shot bet gone wrong.

There’s no real data to explain why many novice investors fail to make it in the trading game. After all, you don’t get an exit interview if you blow up your account.

I’m not one to gamble, but if I were to bet why I would say most new traders don’t make it for one simple reason: They try to outsmart the stock market.

Many newcomers view trading as a battle of wits. They’re determined that they need to beat the market into submission.

To them, that means mastering complicated strategies and using countless indicators to pinpoint trade ideas.

Yet over the years, I’ve found that the more complex you make your trading strategy, the worse your results will be in the long run. Just like most things in life, simple is better.

Of course, simple doesn’t necessarily mean easy…

It’s not easy to implement a simple trading strategy. It’s even harder to stay committed to one when markets get tough.

But with the right mentality and consistency, you can begin your own journey down the path to profitability!

— Greg Guenthner

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It’s not always about how stocks act, but how they react that counts. That’s what we’re looking for in the markets right now after some much-needed profit taking tanked the Nasdaq toward a quick correction. I know big market unwinds tend to spook investors. But it’s healthy action!

Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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