LDK down 15% after hours today on earnings release. I have a small position and that is why you never hold stocks into earnings. Its a gamble, not intelligent investing and trading. I was just reading a book on trading and it even told me not to hold stocks when they are releasing earnings, cause the stock is a 50/50 toss up on which way it will go. I broke the rules and tomorrow morning I will pay the price when the stock gaps down. I guess the only reason I held it was because most stocks have been reacting postively to earnings reports, and secondly, I remembered GRMN, the stock which I sold the day before their earnings and they killed it. The stock was up over 20% the next morning and I was kicking myself for selling it.
Now I have learnt my lesson about holding a position going into earnings reports. It is very speculative and if you're right, great. However if you're wrong, I hope that you didn't have a big position because it could hurt and there is nothing you can do about it. If anything take half your position off the table and only risk a smaller amount. Or you could go the casino and just bet on red or black on the roulette table, your odds may be better!
Set your gameplan and stick to your rules. That way you will be better prepared for such negative events.
Now I have learnt my lesson about holding a position going into earnings reports. It is very speculative and if you're right, great. However if you're wrong, I hope that you didn't have a big position because it could hurt and there is nothing you can do about it. If anything take half your position off the table and only risk a smaller amount. Or you could go the casino and just bet on red or black on the roulette table, your odds may be better!
Set your gameplan and stick to your rules. That way you will be better prepared for such negative events.
Comments