In today’s world wealth creation is something which everyone needs to lead better lives and the most common way to go about this is by investing in stock markets. These investments are, however, not the easiest things to understand.
What are the stock markets and at what point do I invest in them?
The place where stocks or a share of a company, is dealt with is called a stock market or a stock exchange. The ownership of the stock entitles you to own a small fraction of the company. Here billions of stocks are traded for money or for other stocks, on a daily basis. The daily exchange of finance is what determines the prices of individual stocks and together these come together to give us stock indexes of markets.
The terminology might sound a bit complicated and tracking the prices of each individual stock can be quite a headache. Especially when it is time for quarterly reports release or yearly reports dates. During these dates the markets can be highly ‘unstable’ or as experts like to the use the term ‘volatile’. At these release dates, it is important that you think about investing or divesting in certain companies. But in order to do this, you will need to keep an eye on all the companies and their stocks and this could get quite stressful.
The point when companies announce their earnings in full for a year is called the Earnings date, and it is perhaps the most sought-after date by brokers and investors. On this date, the stocks of the company can fluctuate very easily. The dates for each company on the stock listing are never the same and thus you would have to be aware of the release of earnings date, however, most of the dates are around the same time period. So when you are strategizing to acquire certain shares, you should plan it in great detail taking help of tools such as an Earnings calendar. This is a calendar that contains various dates and predicted movement about the stock prices of many companies.
What makes up an earnings calendar?
In this calendar, there is all the necessary information required by stock brokers and traders to keep an eye on the movement of share prices. Yet, this is not enough as it would take days for people to sift through the stacks of listings which are there in a stock market. Hence there is the need for a filtering tool which can narrow down the best companies based on what your requirements for investment are.
The calendar comes with details such as % predicted to move the next day, % predicted a move in the next seven days, estimated Earnings Per Share (EPS), market capitalization, average volume moved, and last but not least, previous day closing price. All of these details can give you a different perspective of how companies are going to perform once the earnings date is announced. With this tool in your hand, you can now make some well-thought moves to secure your portfolio and put yourself in a good spot in the stock market.