The 3-day rule is a trading strategy that suggests waiting three days after a company releases its earnings report before buying or selling the stock. The idea is that the stock price will have had time to adjust to the news by then, and you will be less likely to make a rash decision based on emotions.
There are a few reasons why it's a good idea to wait three days after earnings before making a trade. First, the market is often volatile in the days leading up to and after earnings. This is because investors are trying to anticipate the company's results and how they will affect the stock price. As a result, the stock price can be very unpredictable during this time.
There are a few reasons why it's a good idea to wait three days after earnings before making a trade. First, the market is often volatile in the days leading up to and after earnings. This is because investors are trying to anticipate the company's results and how they will affect the stock price. As a result, the stock price can be very unpredictable during this time.