EARNINGS SEASON WARNING

There are a couple of stocks that I have been following that are expected to report earnings later this week. This means one of two things - the stock will rise or the stock will fall. Looks kinda dumb when I write it, but the rise or fall can be big. If a stock misses its earnings, get ready for a big fall.

So the solutions:
1. Get out of the stock and look away.
2. Stay in on the stock and play.

You could also modify staying in on the stock by buying puts. When you buy a put, you are protecting your stock from a severe loss. If the stock drops the day after reporting earnings, sell off the stock and keep the put in your portfolio for a while. Of course, this sounds a lot easier than actually performing this kind of trade so before you even attempt this type of manuever educate yourself on how to do it. i.e. if you are new to investing just get out of the stock because it is gut wrenching to lose a lot of money. Remember, we are trying to take emotion out of investing.

So, the stocks reporting earnings later this week include: TRAD and WCC

Be prepared. Good luck trading. JD