If you've been around the block and traded some stones, you may have heard of this thing called burning's season. Wabbit season duck season fire. No, it's not wabash season nor duck season. It's earnings season, earning seasons are exciting times that happen four times a year in which publicly traded companies will release their financial results, basically informing their investors.

How much money they've made in the last quarter, depending on the results, these earnings reports can create some volatile moves. In some of our favorite stocks, whether it's ripping to the upside or dumping to a bottomless pit in this video i'll be going over exactly what is earning season and why you should care as a trader or investor and how to analyze some key metrics from the Financial results, so you don't have to read through 10 pages of 10q reports and, most importantly, i'll also share with you some important trading tips for you during these volatile times. So if you're excited to learn about earning seasons, to increase your earnings and my terrible bad jokes scattered throughout the video, remember to gently destroy the like button, all the proceeds from you clicking, the like button will go towards the chosen charity of the month. The bag holder foundation for my ex-husband mike beckholder, that starts from the very beginning.

What is earning season? Earning seasons occur four times a year. It's a period of time when publicly traded companies are required to report to their investors. How much money the company has made in the last quarter? This is important, because wall street analysts rely on these earnings results to determine the value of a stock, and many institutional and retail investors use these metrics and the sentiment to determine whether they want to buy the stock or just get a goat, because this baby is Taking on huge losses and is not making any more money for the company nor the investors, like we mentioned earlier, earning seasons occur four times a year, each lasting around six weeks. Yes, your favorite stocks, like tesla amd netflix and even our best friends, gamestop and amc - will do these quarterly earnings presentations every three months.

So don't worry. If you just missed the last one, you will still have many more chances to yolo. I mean to trade or invest in these stocks during this year and remember per regulations. These publicly traded companies are required to report their financials update the investors on how they're doing and any upcoming events or drastic development within the business individual companies, earnings dates are announced.

Usually, a few weeks before the actual earnings report and the conference calls are hosted monday to friday during regular trading weeks. The actual times of the report are either before the market opens first thing in the morning or right after the close most companies, at least the big tech names like google, apple, amazon or apple release, their earnings right after the bell from 4 to 4 30 pm Eastern time, because they don't want to give traders too much of a break before the next yolo, am i right what usually happens on the day of the earnings report? Is companies will first of all release a key financial metrics, basically a quick rundown of how they did in the last quarter, they'll post their revenue figures, as well as their earnings per share and right after the key metrics are announced. Usually this is when the company's stocks will start fluctuating after hours or pre-market many times. As the figures are exceeding the wall street expectations, you can see the stock rip up after hours like this amazon chart right here.

You can see the stock took off like a rocket and ran up 300 to 400 per share after hours. On the other hand, if the company releases disappointing financial results like this one, well, you can see the stock can still rip too no not rip to the upside. Like amazon, i'm talking about rip rip, don't worry we'll dive into the details of what these key metrics mean and how to analyze them as a trader or investor. In a little bit following the initial financial results like earnings per share and revenue, there will be a more in-depth conference call with a ceo, cfo and coos.

That's where they'll dive into the details of the business, such as balance, sheets, new product releases, consumer trends or even competition concerns. Now i know if you're watching this video you most likely don't have the time to read the entire 10 pages of the 10k on the sec website. So that's why we're going to be talking about some key figures. Most investors and wall street used to analyze whether a stock is a buy, hold or get out all right.

So the first key metric is earnings per share abbreviated, as eps earnings per share is calculated by taking the company's net profit divided by the number of outstanding common stock. So, for example, if my ex-husband's publicly traded company bagholder trading limited reported that they made one thousand dollars in profit in the last quarter, and they also have one thousand total stock shares available. Then we take one thousand dollars in profit, divided that by one thousand shares to get an eps of one dollar per share. Vice versa, if back holder trading limited reported that they didn't make any money, instead, they have a loss of one thousand dollars.

Instead, the eps will be negative one dollar per share, which is a big loss. The moral of the story here is kids, don't backhold, like my ex-husband. The next key metric to look at from the earnings report is revenue. Basically, revenue is the amount of money.

The company makes from providing its services or products to consumers, even though having a very positive revenue does not mean a company is highly profitable because none of the costs are considered. Investors still value this revenue metric very much, because a growing revenue is the number one driving factor that could eventually lead to higher profitability. Essentially, if a company can have increasing revenue year over year, this shows growth to their investors. This is especially important in tech companies or growth stocks in general.

Since wall street follow the statement, if you're not growing, then you are in the process of dying. That's why amd stock soared after hours after the q4 earnings report on february 1st 2022? Not only did they announce, they have an eps of 92 cents per share. They also have a very bullish, 49 year-over-year revenue growth. Another great example is google.

They also released their q4 earnings on the same day as amd. Google also had some blowout numbers as well. They had earnings of 30.69 per share and 32.4 percent year-over-year revenue growth. In both of these examples amd and google, they also had another very bullish factor.

They issued upside guidance, which is the third key metric to look out for when reading a company's earnings reports. In the simplest terms, a company's guidance is how much money they are expected to make in the near future and whether they are projecting their revenue to grow. Even more guidance is often discussed in depth during the actual conference calls after the initial financial metrics are released. Remember the stock market is forward thinking.

Well, it's great and reassuring for investors to know that companies like amd or google have made a lot of money in the past quarter, investors care even more about whether they are expecting to make even more profit in the future. So both of these stocks, we just talked about, did not disappoint. They both issued upside guidance and forecast even more growth in 2022. However, for stocks like paypal and facebook, or shall we call it meta, these companies are projecting a slower growth and subsequently making less money.

In the rest of 2022, and that's why these stocks dumped after hours and continued lower for many days later, remember these key metrics in earnings reports, the earnings per share revenue, growth and guidance are really just the surface of the story. Understanding these figures are enough. For short term day trading or even swing trading, however, if you are a long-term investor, i would highly recommend you to read the entire earnings transcript or tune into the earnings. Calls live alright.

So now that we understand the three key metrics to look at, how exactly can we both day traders and swing traders, take advantage of these reigning lamborghini opportunities that happen four times a year? The first thing for us traders is to look for the anticipation move into earnings stocks that have a big following or just enough weight to move. The indices often can make huge moves up or down into the earnings event. For example, stocks, like tesla apple amd, are some of the most anticipated stocks that traders love to trade. Generally speaking, if the sentiment and the market environment is expecting a company to release very positive earnings, the stock could rip up and run into earnings.

However, this is obviously not applicable to all the stocks in a fearful market condition such as during the pandemic or high inflation and rising interest rate environment. We're in right now, regardless of whether there's any hype for the earnings. Many stocks are still selling off like a bottomless pit, so just be very careful and take into consideration all the factors we just talked about. The second tip i have for you - and i think this is a very important one, especially if you are a new trader.

Never, i repeat, never hold your short term trading positions into earnings. This is a true 50 50 gamble. A stock can beat on earnings and still tank. It could also miss on earnings and take off like a rocket.

I've actually had personal experiences holding these trading positions into earnings calls in my first year of trading, i was new and very naive, and i really wanted that one home run trade and let me just tell you the profits from these gamble. Trades are very, very small. In comparison to the big losses, the risk was just not worth it unless you only have a very small partial position or you're hedged with options after so many years of trial and error. Honestly, my preferred way to trade during earning seasons is to trade.

The gap ups or the gap downs the next day after the full earnings reports have been released, which is my third tip for all of you. Traders take the time to fully analyze the after hours action on some of these stocks that made huge moves and use a time to observe how similar industry stocks react after their earnings by waiting until the next day. You now have the time to truly analyze and read the conference called transcripts and get a full understanding of all the three metrics. We talked about eps revenue and guidance and trade.

The pre-market moves the next day. Accordingly, if you are looking for more in-depth trading strategies to trade, these overnight gap, ups or gap, downs after earnings reports then feel free to check out the humble trader academy. On my website, i talk about trading earnings in even more detail in the program. These are some very exciting times that lead to a lot of volatility for us traders to capture some decent profits and hey guess what even, if you had just missed this one around there'll, always be another earnings season in three months.

Thank you guys. So much for watching as always, i'm the humble trader - and i will see you guys next time you.