As we've touched on today, the US reporting season has just kicked off. But our own ASX earnings period is just around the corner too.

Here in Australia, most ASX shares report earnings twice a year. The first window for these earnings normally runs over February and March. The second, over August and September.

Now, not all ASX shares report in this window. Some of the ASX banks are notable exceptions, for instance.

But most do. And when we get a look at the latest numbers from these stocks, it can often set the tone for the markets over subsequent months. To put it simply, earnings season is kind of a big deal.

So today, let's discuss how I'm personally preparing for this busy time in the markets.

How I'm preparing my ASX earnings season watchlist

First off, it's important to note that I rarely engage in selling ASX shares during earnings season. Earnings are a time of heightened emotions, and companies' share prices can swing wildly after they report earnings. Sometimes, the market initially decides it loves a report, only to send the shares lower in subsequent days. The opposite also happens.

As such, I tend to stay on the side lines unless the market wildly overreacts to a company that I've been eyeing off and offers up an illogically low share price.

Instead, I'll first be going over the reports of companies already in my portfolio, and making sure that management is doing what they've previously told us they would. Honesty and openness are traits I love to see in the management teams of the companies I own, and this is always most evident at this time of year.

More things to watch

But raw earnings numbers matter too. There are a few stocks in my portfolio that are currently 'on watch' for poor performance. These include Endeavour Group Ltd (ASX: EDV) and Kogan.com Ltd (ASX: KGN). I'll be watching these two names particularly closely to make sure they are carrying out the changes that they've said they will make to improve business performance.

Otherwise, I'll also be watching how the numbers (and subsequently, the share prices) look at some of the companies that I would love to own, but haven't bought yet. I'm very excited to see what TechnologyOne Ltd (ASX: TNE) has to say in its ASX earnings, for example. Ditto with REA Group Ltd (ASX: REA).

And of course, I can't wait to see what the big dogs of the ASX, the usual suspects like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), and the rest, have to show for themselves too.

See you next month for the earnings debriefs.