MON 8/3: AME – BUYING (1/3) @ $244.04

3:58 PM – Starting a 1/3 position in AME ahead of its earnings report. Earnings trades carry significant risk because stocks can gap sharply in either direction after the results are released. However, I have had success with several recent earnings plays, and with my personal trading account at all-time highs—up +42% YTD and 63% YoY—I am willing to assume that calculated risk with a smaller starter position.

James’ Trader’s Tip: Size Positions According to the Risk

  • Earnings announcements can produce sudden and unpredictable price gaps.

  • Beginning with a 1/3 position limits exposure while still providing meaningful upside participation.

  • Higher-risk trades should always be matched with smaller, more controlled position sizes.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.