How to Analyze a Stock After it Breaks Down on Earnings

Even the best stocks to swing trade have bad reactions to earnings.  Gap downs post-earnings are often profitable trading setups.  In this short 6 minute video I analyze BWLD, Buffalo Wild Wings, post earnings.  You will understand exactly what I look for when a stock breaks down.

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 7 day free trial at BullsonWallStreet.com.  

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This is How I Prepare My Swing Trading Plan for the Week

Spending quiet time outside of the market, uninfluenced by emotion and biases is required for most successful traders. To get ready for the coming week, I spend my weekend analyzing sectors, basic scans (like the 4 percent breakouts), proprietary scans (like bottoming formations with a few unique variables added) and reviewing my watchlist.  The time I spend on the weekend is by far the most important work I do.

That's right.  It's not the time I spend executing trades, nor is it the decision I make in picking a stock.  The real work comes from developing the game plan.  It's during this time that I get a real feel for the market.  There are times when it's tough to even put into words what the "feel" is, but I know it's there.  It is at this point that I write down my game plan for the coming week, which I send out to Trade Report members.

Here is a free view of the Trade Report game plan for the week, which I develop for Trade Report members on the BullsonWallStreet website.  It is exactly what I trade from.  Since starting the Report the results have been fantastic, with a 14 percent gain in two months.

Are You Being Lazy Building Your Swing Trade Watchlist?

Building your swing trading watchlist can be a lot of fun, especially in the beginning of it's creation when ou find tons of new stocks.  However, after a while it can become a grind.  You start skimping on your scans and head over to twitter and see what the twiiterati is watching.  Or you forget about your stock sector analysis and figure you can just trade the ETF.

Yes, we've all been there.  After a while your watchlist gets bigger and less manageable.  Pretty soon it's been a year and you wonder why a beaten up stock is still in your breakouts list.  It happens to the best of us.

I combat this by starting a new, totally fresh watchlist every two months.  I've found two months is the point where my watchlist tends to get away from me.  While it may seem starting your watchlist from scratch is a pain, it actually is invigorating and lots of fun taking a fresh look at many of the stocks you were trading.  There also is the added benefit of getting away from trading the same stocks over and over.  Rather than reach for buypoints at the same old stocks, you'll find yourself with better entries in stocks that have better setups.

I challenge you to mark your calendar two months from now as "rebuild stock watchlist" day.  I'm willing to bet that when you are done you will wonder who stole your watchlist.  That is how different it will look!

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 7 day free trial at BullsonWallStreet.com.  

If you like this article, follow me on twitter