This question has long perplexed the minds of many people since the advent of trading and has been asked more often in the past century where it became the very foundation of economies around the world.
Everyone wants to be rich in this world and one of the most common ways is by investing in stock markets. A stock market is a place where you can exchange the shares and stocks of companies for a price, which can fluctuate over the course of the day. Here commodities are also exchanged, but the main focus lies on exchanging the shares of companies. Purchasing a share entitles you to be a part owner of the company. The companies who sell their shares on the stock market are called public offerings.
The question now is how should I invest in stocks?
The best way to go about this is by taking the help of various websites which have a ton of documents to help you understand how the markets perform and what is the best time to invest in them. The most important one amongst them is the earnings calendar. In this calendar, you will find a detailed list of all the earnings date of all public companies. The earnings date is a particular date when the companies release all the profit and loss details and their reports on performance. This could be for a stated time period like a few months or for the full month.
Based on these reports and previous iterations of the reports, analysts calculate the predicted % movement of the price the next day, seven days later and the Earnings per Share (EPS) over the time period. All of these details can help you see the potential of the stocks you are planning to invest in and see if they are worth it.
They can also give you a list of companies which can be good alternatives to the company you were planning to invest in. Most calendars contain filtering tools to help you sort out the companies based on the returns you wish to see. It will also show the previous closing price so you can see some real-time changes in price. All of this can help you be a better investor and help you strategize wisely.
Why invest in and around the earnings date?
The major reason is the volume of shares being moved around during this time. What this means is that you can very easily get your desired shares for a much lesser price or sell yours for a much higher price. The key here is planning and identifying the stocks which are likely to see a big fluctuation on earnings date. With the help of a solid strategy of investment, you can secure your shares and be a winner in and around this time. Investing in these markets is always a good idea, and can be a good source of an alternative income; if you happen to have a knack for identifying good spots, you might get rewarded very handsomely.