The Truth About Buying A Stock On Its Quarterly Earnings
The excitement of buying a stock on its positive quarterly earnings can be short-lived and costly.
Good news will have investors, speculators, and traders buying the stock. Money will pour into the stock and send its price soaring. The stock could increase 10% or 20% or higher in minutes.
Analysts will follow the action and increase their price estimates for the stock. Some investors will buy it on the way up and overpay.
Hours or days later, some or most of the stock’s gains could disappear. Taking investors’ money with them. Euphoria is gone at that point. Disappointment takes over.
A month later, negative news could come out about the company. Analysts could reverse course. They may downgrade or lower the stock’s estimate.
Investing does not have to be chaotic if you are prepared. And that starts with knowing the price to buy and sell a stock. That comes from proper research.
Who knows? Investors could significantly drive the stock down. You could get the chance to have over a 100% return. All because of people buying a stock over one quarterly report.
Have a good day.
Enjoy your investing.
Mo Hicks
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