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FOMC tomorrow.FED watch toolby CME shows the countdown, the odds and more.
Right now it seems like 98% that Fed will NOT CHANGE RATES
The following are my PERSONAL suggestions on trading during FOMC days:
Reduce trading size
Be extra picky = no trade is better than a bad trade
Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 2925.00 with a stop at 2919.00, instead "stretch the price bands" due to volatility and place an entry order to buy at 2919.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
Expect the higher volatility during and right after the announcement
Expect to see some "vacuum" ( low volume, big zigzags) right before the number.
Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
Know what the market was expecting, learn what came out and observe market reaction for clues
Be patient and be disciplined
If in doubt, stay out!!
Trading video 101:
How I like to use support and resistance levels
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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.