Learn how Earnings affect the market

11 July 2021

While marketing campaigns and plans from the top management are good, nothing says "We are successful" as well as a positive quarterly earnings report. That's what Earnings Seasons are here for — traders and investors across the globe are awaiting the Earnings Season as many companies release their reports, bringing volatility to the market.

So, what is Earnings Season, and how will it affect your trading? Let’s take a dive and see.

What Is the Earning Season?

So, as it was already said: Earnings Season is a specific period when companies release their quarterly earnings reports. It occurs at the end of a fiscal quarter, so we have 4 Earnings Seasons each year: in January, April, July, and October. Why is it so important? Well, performance reports generate a lot of speculation and predictions on the market. Should the company fail or exceed said expectations, its stock price enters a short period of high volatility. That’s why traders prepare for it, as a successful prediction gives an opportunity for big profits.

Take note: while trading on Olymp Trade, you are not buying stocks, even during the Earnings Season.

To help you to make said profit, our experts prepare and release special trading signals that will give you a direction for trading once the reports are released.

Trading Signals and How to Use Them

Starting 13.07, we’ll start to release trading signals regarding the most anticipated reports released on the market. In those signals, we’ll give you our prediction on the direction of the trend that will form once the report is out. We make our reports based on the companies’ yearly performance, plans, estimated future EPS, and past earnings. All of this information is compiled and published as a simple UP or DOWN trading signal that you can pick up.

You will be able to find our trade signals in our Instagram stories, platform’s stories, Telegram posts, and, of course, pushes.

How to Read Performance Reports

Our trading signals are based on the compiled data from the company, its past performances, ambitions, and, of course, its current performance report. But how do you read said report correctly? There are few indicators that show you how the company performed:

While there are more important economic indicators that you can pay attention to, these three are enough to make a prediction. Also, keep one fact in mind: the market expectations are always expressed in consensus forecasts, so if the results are higher, the stock has a better chance of rising, and vice versa.

Find out more about trading stocks and fundamental indicators on our blog. And that’s everything you need to know about Earnings Seasons, how they affect the market, and how to trade in those changed conditions. Now, all you need is to keep an eye out for our trading signals and be ready to trade!

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