Editor’s Note: When should I get in on a stock?

It’s one of the first questions a beginner trader wants to know before making a trade.

So today at 1 p.m., our Lead Fundamental Tactician Karim Rahemtulla is showing traders his process for developing a trade.

He’ll also reveal one of his most powerful signals for buying a stock.

Click here to sign up for today’s live masterclass for FREE.

– Ryan Fitzwater, Publisher

When it comes to playing earnings, I prefer to look for companies that recently beat earnings and already have established momentum.

Take Lemonade (LMND) for example.

LMND recently beat earnings by a lot. It rallied 30% on Tuesday after reporting solid Q2 revenue and raising its full-year guidance.

Now, I don’t have a crystal ball. So I couldn’t guess if LMND would beat earnings or not.

But in all my years of trading experience, waiting until AFTER earnings to ride established momentum on a stock has been a proven way to generate consistent winners.

That’s what I did here with LMND.

As you’ll see in its chart above, LMND saw a big move up after earnings on Aug. 5. Then it consolidated for a bit before moving up again right after the opening bell yesterday morning.

This is the “post-earnings surge” in action.

And when you know what to look for in a chart, you can get positioned on the stock AFTER earnings to potentially capture more momentum.

In the case of LMND, after it reported earnings I noticed on my S.A.M. Scanner that it had a perfect 15-minute chart. So I added some calls before the end of the day to potentially capture early Day 2 momentum.

The stock moved up on Day 2 of earnings, and I added some more calls the following morning to continue riding the momentum.

I also added some more right before lunch after noticing a strong consolidation pattern.

I ended up closing for a 50% winner in 1 trading day.

Action Plan: Lemonade (LMND) is just one example of how I play post-earnings momentum for multiple potential winning trades in Daily Profits Live and Profit Surge Trader. I’ll be looking to get positioned again on the next pullback.

If you’d like more earnings plays like this, I invite you to join me today.

Click here to unlock my next post-earnings play.