FOMC Interest Rate Decision Due Tomorrow 7.29.2015

Hello Traders,

The FOMC interest rate decision is due at 14:00 ET in the US tomorrow ( Wednesday, July 29th ).

FOMC days have different characteristics than other trading days. If you have traded for a while, check your trading notes from past FOMC days that may help you prepare for tomorrow.

If you are a newcomer, take a more conservative approach and make sure you understand that the news can really move the market.

The following are 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 2085.00 with a stop at 2079.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2079.75 and place a stop a few points below in this hypothetical example.
• 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.
• Know what the market was expecting, learn what came out and observe market reaction for clues
• This is another great example why a trading journal would be an asset, as you can go back and check your notes from previous FOMC days.
• Be patient and be disciplined

 On a different note:

Did you know Cannon offers FOREX trading including the MT4 platform?

Did you know that Cannon offers trading systems on auto trade basis including iSystems?

Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains. If you need help creating a trading plan, visit our broker assist services. 

GOOD TRADING