A possible gain of more than 90% by the first day of summer

Good News Sets Up a Potentially Winning Trade ...READ MORE
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Good News Sets Up a Potentially Winning Trade

It is earnings season again and that is time for a strategy that focuses on risk. While many traders try to take positions ahead of the earnings report, we find it is possible to find trading opportunities by waiting until the announcement is made and then entering the trade.

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This strategy is less exciting but could be less risky than trading ahead of the announcement. If the trade is on the wrong side of the news, shares bought before the announcement could drop sharply and leave traders with large losses of several hundred dollars or more.

In fact, there is no way to know how large a loss will be if the news is unexpected. Well, there is one indication of the potential loss. You could lose 100% of the amount invested in any stock which can be a large amount of dollars.

With this strategy, as explain in our latest article, the maximum size of the loss is known in advance and is limited to about $170 based on recent market data. We explain how that can be determined and how the size of the potential gain can also be precisely known. In this case the possible gain is more than 90% in less than two months.

We have the details on the trade in our latest free educational article that is available right here.

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