Strategic Swing Trader Earnings Plays – April 23, 2019

Please see Sami's earnings plays for April 23, 2019 here:

WARNING (IMPORTANT):
Due to the extreme volatility that is associated with trading earnings, utmost caution is warranted. Your share size should be extremely small until you are profitable trading this strategy.

WHEN ALERTS ARE SENT:
During earnings season, the list is reviewed daily and names are selected based on pattern and price action towards day's end (refer to SST manual for more detail). Since the stock's closes is key, the list is usually not generated until 3:30 – 3:40 PM. Check your email or the tracking sheet on your portal around 3:45pm.

SHARE SIZING AND RISK CONTROL:
Stocks reporting earnings are expected to gap, there is no predetermined stop. Without a top, there is no way to determine share size. So the best way to control risk per trade is through the dollar amount in each position. It is best to start small.

MANAGEMENT POLICY:
The positions are held overnight and managed the next morning as follows (assuming a long position):
1) Wait for 1st 5-min to complete.
2) Set stop below 5-min bar’s low (LOD).
3) If the stock breaks the 5-min low, the position is exited immediately.
4) If the 2nd 5-min bar breaches the high of the 1st 5-min bar (i.e., makes a new HOD), keep stop at LOD. Do not manage the play. Exit at end of day.
5) If the 2nd 5-min bar does not break the high or low of 1st bar (i.e., an inside bar), manage position bar by bar on 5-min chart (i.e., keep raising stop as new 5-min bars form) until it is trailed out.
Note: The bulk of the gains is made through the gap, not through the management. If you find this management too cumbersome, feel free to close all positions at the open without managing at all.