Should we hold stocks before the announcement of earnings? I once lost 30% because of this!

Many investors may have faced this dilemma, unsure whether to keep their stocks during the company's earnings announcement period. Recently in Malaysia's stock market, despite companies announcing positive earnings, their stock prices have decreased. Often, investors have anticipated good performance and chose to sell their stocks at the time of the announcement - sell on news.

But should we hold through earnings in the U.S. market? At the end of April this year, I held a stock through earnings, and the result was shocking. The earnings were better than expected, but the stock price fell by 30%!So, the release of earnings in the U.S. market is full of uncertainty. If you mainly engage in swing trading, it is not recommended to buy stocks in the days leading up to the earnings announcement due to high uncertainty!

You see, NVDA's earnings drove the stock price up by 30%, whereas TSLA and NFLX's earnings announced yesterday led to a decline in the entire stock market today.

There is only one situation where you might consider holding stocks during the earnings announcement.In "Momentum Master," numerous trading masters (MM, David Ryan, Dan Zanger, Mark Ricthie II) discussed how to get through the earnings announcement period. A key factor is whether you have "paper profits." If so, you can use these profits to hedge the risk. If not, you can choose to sell or sell half of the stocks. Protecting your capital is most important in the trading process.

Therefore, if you are trading stocks and don't want to be at a loss during earnings announcements, I recently found a very useful feature on Moomoo. With just one click, you can add the earnings announcement dates of your held stocks to your calendar!