One of many rules that famous investing teacher

One of many stock 101 rules that famous investing teacher Jim Cramer has taught is to be careful before investing based on earnings preannouncements. What are earnings preannouncements? When a company has a poor quarter, they try to decrease the impact of that bad news by releasing it to the public. This way they can avoid those sharp spikes that tend to happen when companies miss those estimates. What’s important to learn from this stock 101 rule is to not jump on any sudden news release but instead to wait 30 days for market reaction.

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