I have increased some one-one-one mentoring with a few developing traders. Their goal? To make a significant leap forward during this earnings season. During our discussions my goal is to help them limit their trading to their best setups.

Here’s a thought that just keeps coming back to me. The market offers 100 windows that you can look into. My job is to get our traders to look into three with the set ups that work as an intraday trader. Their job is to cut those windows down to two and find the plays that work best for them. During earnings season I want them to look into one. Let’s discuss.

As I think about how to perform best during the next five weeks I see two trades: Trend Trend Trade, and Second Day Plays. I want to find weak stocks, with bad news, that are gapping down, starting to trend intraday, and with room to the downside on our long term technicals. I want to find stocks that are strong, with unexpectedly good news, that are gapping up, starting to trend intraday, and with room to trade higher on the longer term technicals. I wrote about this trade in The StockTwits Edge . This is the Trend Trend Trade. That is my focus. See $MAR $COP from today. See $CLNE yesterday. See $MCHP from Tuesday.

Also, I want to make note of the best levels in stocks that report and trade on Day One. From all these opportunities I want to narrow my focus to the top two best levels for Second Day Plays. These are my plays. This is all I want to do during earning season. I want to narrow and focus and limit. See CLNE today below 16.80. See MCHP from Wednesday at 33.10.

All of this is enough for me to have a successful earnings season. I will look into one window. Other trades that may offer opportunity will not interest me. I will not deviate. This is me trading my best set ups, more often, and with more size.

What is your plan to attack this earnings season?

Bella

Author, One Good Trade