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You've decided to buy, but you don't want to stagger your purchases for too long, given the upcoming product launch. Don't forget, just because everyone is "sure" a stock is going to beat earnings doesn't mean that companies don't disappoint, and miss earnings.

It happens. This is just a way to be conservative, going into that unknown area.

If the stock goes up dramatically on great earnings, then you have to again accept that you missed it, rrade move on. Do not buy. Wait until after the earnings results are announced.

If their earnings miss by a lot, you may reevaluate whether you wish to buy.

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If you determine you still want to build your stock position, then you may want to buy on the day of the bad news, to take advantage of a I have 420 to trade overreaction that causes the price to go down, well below where it is justified.

After that first purchase, continue 240 build your position over more purchases.

These are just example scenarios and guideline suggestions! Again, we have to stress that you should not base your investment decisions based on this website, or the examples or suggestions that we provide.

Please consult a financial expert before making investment choices. Diversification is key!

One of the most important things you can control is how diversified your portfolio is, and that you keep it that way, covered in the next step, Diversification Already know it? Tip: Try a valid symbol or a specific company name for relevant results. Finance Home.

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