Trading this Week’s Earnings Reports
One good way to get a jump start on your trading week is to look at what companies have big events lined up for the coming week. This week, there are a handful of major companies that have earnings reports that will be released, with Facebook and Disney being the headliners. Watching what happens before and after these announcements is exciting, but it also creates a great money making opportunity if you are able to get a good gauge on what will happen, and how traders will react to the possible situations.
Both of these companies are typically included in any asset list by the major binary options brokers. That makes the short term trading of these companies much more easily accessible to the average person. The day traders and high frequency traders that like to take advantage of these things will still have their opportunities, but you don’t need to have millions of dollars set aside for trading to do the same. Just be aware of when these events are scheduled for, and have strategies in place so that you know how to act regardless of which direction a price moves. If you have a set plan, it’s a lot easier to make trades in the heat of a busy trading day.
Facebook will announce their earnings on Wednesday and Disney will do the same on Thursday. Earnings reports are usually released after the end of the trading day, so there will often be a lot of movement early the following day if the results are unexpected. But because most binary brokers do not allow stock trading for the first 30 minutes of a trading day, this makes jumping on these trends a little tougher. However, if an unbalanced condition is created because of over-vigorous trading, then there can sometimes be a lot of back and forth movement for an entire trading day. This means that trading the news is no longer going to work, but a technical approach will be needed. This must be figured out on a case by case basis, so pay attention to price movement from 9:30 to 10:00 in the morning, even if you are trading binaries. Just because you can’t trade during this time doesn’t mean that what’s happening isn’t important. As you get ready for the trading day, spend several minutes going over motion so that your trading strategy can more accurately reflect what’s going on.
And because this will be the first full week of the month, the monthly jobs reports will come out this week, too. This is scheduled for Friday, November 6th. If a clear direction is created by any of the earnings reports, pay attention to what then happens with the federal jobs report and try to determine how this will affect any established trades you are in or about to create. This is yet another danger of short term trading. There are so many factors that influence price and trying to account for them all over the course of a few minutes or even a few hours is impossible. Over the course of a few years, these things are easily overcome. But it’s not possible to do for a 60 second trade. It just makes trading all the more challenging, yet all the more profitable when you do it correctly.
Other big companies that have earnings releases scheduled for this week are Tesla, MetLife, Cigna, Allstate, Visa, and Shake Shack. Finding these companies on a binary broker will be difficult, but if your broker does offer them, be aware that there may potential in these corners, too.