You are not going to trade today are you? + My strategy to trade
Today we’ve got the most important announcement of them all, the FOMC statement and interest rate announcement.
Its been the largest mover in the last couple of years, its has been even more important than the non-farm payrolls report…
So be careful alright? This is the time of the month where most traders wipe out their trading accounts.
Also, on Thursday, we’ve got more important announcements:
– JPY Monetary policy statement
– CHF Interest rate
– GBP Interest rate
– USD Core CPI
Si it might be a good idea to call it a week… what do you think?
It’s incredible that I still get emails asking for help about how to trade these announcements.
Please don’t trade them! This is not how you trade to get consistent results. You could get your entire account wiped account in a matter of minutes… The risk is not worth it.
You might get away with a few announcements, but sooner or later, the market and your broker will teach you this is not the way to trade.
It just takes one gap against you, a leveraged trade and booom! There goes another trade account!
Look my friend, 10 years ago it made sense to trade fundamental releases…
There was a time when the market could move 150 pips in one direction. But today is different.
The market gets pretty wild, your broker widens the spread, there are gaps, most of the time the market spikes on both ways, then, there is slippage and requotes… its a nightmare.
So let me suggest something else…
Instead of trying to get a quick gain here and there. Look at one chart, try to understand what the market is doing, does it make sense? I mean, is it ranging? Trading up? Trending down?
If it makes sense, trade accordingly.
If its ranging, just wait for the market to reach either extreme of the range, wait for upward/downward pressure and trade it.
If it is trending up, try to find a buy opportunity on a shorter time frame.
If its trending down, try to find a sell opportunity on a shorter time frame.
If it doesn’t make sense, just close that chart, and open up another one. Remember we’ve got plenty of instruments to trade.
Try it trader.
In order to get consistent results, what ever the way you are trading, needs to make sense, at least to you.
Let me know what you think.