In a recent video shared with the trading community, veteran equities trader Zune revealed why he strictly avoids trading through earnings reports—a decision that stems from experience, capital preservation principles, and risk-to-reward logic.
Known for his systemized, asymmetric trading strategies, Zune emphasized that earnings reports introduce levels of uncertainty that can’t be accurately quantified in advance, regardless of technical setup or market conditions.
“Even if the setup is perfect, the risk-reward becomes undefined when earnings are involved,” said Zune during his breakdown. “You could be right on the trade thesis and still get crushed because the earnings reaction doesn’t align with expectations.”
Citing examples from both his past trading and recent market events, Zune explained how even consistent patterns and strong technical levels lose reliability around earnings releases. He also pointed out that price action can often behave irrationally, spiking against the broader market trend—or completely disregarding fundamentals—based solely on after-hours sentiment or unexpected guidance changes.
Zune’s approach is built around probability-based trading with a defined edge, and he notes that trading through earnings contradicts that foundation.
“There’s no real edge in trading something you can’t measure. I want repeatable setups, not 50/50 gambles based on earnings whispers,” he added.
He encouraged newer traders—particularly those in the small-cap and options communities—to back test their performance through earnings dates, arguing that most would find inconsistencies or account drawdowns correlated with those periods.
The video has sparked discussion within trading circles about how discretionary retail traders approach news-driven volatility, especially during earnings season. While some traders choose to gamble on earnings outcomes for large paydays, Zune’s message is clear: professionalism in trading means passing on uncertain opportunities—even if they appear tempting.
Zune continues to post educational breakdowns, trading psychology insights, and real-time market commentary via social media and trading forums. His focus remains on high-conviction setups, risk-adjusted sizing, and consistent process execution.
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