📊 Stock & ETF Trading
How to Trade Earnings Season Safely
Earnings are volatile. Trade them safely with calendars, small size, wide stops, and ETF alternatives to avoid single-name blowups.
Key Takeaways
- •Gaps defeat tight stops—size down or step aside
- •Prefer post-earnings follow-through over holding through prints
- •Use ETF proxies to trade themes with lower idiosyncratic risk
Risk profile of earnings
Large gaps, slippage, and spreads widen. Even "beat" results can sell off.
Safer playbooks
Sit Out
Close positions pre-report; re-enter next day if trend resumes.
Small & Wide
Cap to ½ risk unit with wider, structure-based stops.
Theme via ETF
Use sector/industry ETFs to avoid single-stock landmines.
Post-E Drift
Trade breakouts/breakdowns after numbers with defined levels.
Planning
- •Maintain an earnings calendar for holdings
- •No new positions 48h before a print unless it's a deliberate event play
- •Avoid market orders in the first 5–15 minutes post-print
Track Your Earnings Trades
Add an "Earnings" column to your journal—tag "pre," "post," or "avoid," then track results.
Frequently Asked Questions
Should beginners hold through earnings?
Usually no.
Stops work on gaps?
They trigger, but fills can be much worse.