I received this email which frankly was so much better than my post today that I had to share…

Thanks for the blog post today on “How I Will Trade This Earnings Season”.  It provides focus for thought and more efficient preparation.

As a tool to get better as a trader, I developed a spreadsheet to collect and categorize data/results from all of my defined play types and subsets over the past four months. Logging everything is a tad onerous, but the end result is worth it. This spreadsheet identifies which plays provide a positive expectancy for the way I trade, which trades warrant more risk, and it demonstrates how the application of consistent risk on trades will enhance results.

There is now statistical evidence of play types to avoid. Anything with a ticket average under $6 is a waste of mental and real capital. Passing on a sub-par play setup and watching it trade favorably is no longer frustrating, because it is not a good play for the way I trade.

There is now statistical evidence of strengths as well, highlighting four defined play types and subsets on which to focus. These are the plays where I have confidence in execution, where applying more risk is warranted. Focus just on these play types will make me a consistently profitable trader.

For earnings season, my plan of attack is to look for trading opportunities where proven play types can develop into the Trend Trend trades and Super Chops. Other play setups maybe profitable, but do not maximize the opportunities or skills available to me.

Where does the bigger picture for the stock align with the news catalyst reaction and the intraday technical levels to create the perfect storm for my trades? Finding one of these a week should make for a decent month. Finding two of these a week should make for a very good month.

For this earnings season my job is to find the confluence of charts, news, and selective tactical play entry for my trades. This is how I will make money. This is my plan of attack.

Have a good night.