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Millions of investors think trading around earnings reports can be dicey, but I'm here to tell you that it doesn't have to be that way.
In fact, you can set yourself up for huge profits if you understand three very basic rules:
First, start with the fundamental premise that companies get put "on sale."
We talk about this a lot because it's time tested, well proven, and profitable advice. You wouldn't go to a 50% more sale any more than I would. Paying too much means you don't get as much for your money. However, chances are that you'd go if your favorite store offered 50% off – I would, too.
That's how you need to think about the stock markets. Earnings season is a time of great volatility because traders are trying to decide whether or not they want to buy or sell their favorite stocks based on newly released earnings information.
The prices don't always line up… which means opportunity is yours for the taking.
Second, look for companies that are going up when everything else is getting beaten down.
The reason behind this is that traders constantly hunt for the best stocks they can buy, so they use big down days to establish positions that have better odds of going up.
I want you to do the same thing because that's how you make your money work with the Unstoppable Trends we talk about all the time… instead of against traders who are keen to separate you from it.
Third, have a list of great companies with great results ready.
Right now one of the best is Visa Inc. (NYSE: V).
I've recommended it to paid subscribers of the Money Map Report, and the company has returned 39% (and counting) versus only 13% from the S&P 500, which means anybody following along is enjoying a 3-to-1 advantage.
The company is still a great buy for three reasons: 1) it's a global payments processor with no lending risk, 2) it operates in more than 200 countries around the world at a time when global growth is synchronized for the first time in a decade, and 3) total payment volume is around $7 trillion a year, which translates into roughly 10% of global GDP.
- Stick with the profitable opportunity that buying "on sale" means for your money.
- Prioritize companies that are trading higher when everything else is trading lower on earnings-related volatility.
- The global payments market is on the cusp of a once-in-a-lifetime change that you do not want to miss. Mark my words, you will be kicking yourself for years to come if you do.
Editor's Note: Keith has been researching even more aggressive income potential, too. He's found a special class of investments he calls "26(f) programs," which give investors the opportunity to tap into huge monthly income – $2,000… $5,000… or more – every month for the rest of their lives. Click here to learn how it works…
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.