How to Trade and Profit during part 2 #FOMC #trading

22 Jun 2023 · 0 min

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In this segment, the presenter emphasizes that Federal Open Market Committee (FOMC) meetings and Consumer Price Index (CPI) releases act as powerful catalysts that can cause extreme price volatility, especially on Wednesdays when these events occur. He warns that traders who are not experienced with such macro‑economic releases often get “wrecked” by the rapid price swings. Consequently, he advises most traders to stay out of the market on these days unless they have a solid understanding of the events and appropriate risk‑management strategies, highlighting the importance of preparation and caution during high‑impact news.

Now it's very important that you pay attention to these events because they can be catalysts to do really, you know, just really shenanigans kind of price action. And on the trading days where an FOMC or a CPI is happening, which is usually on Wednesday, you don't— you want to try your best not to be trading unless you know what you're doing, because price action is going to be very volatile. And a lot of people get wrecked by this, at least a lot of people who don't know about these events. But you guys are prepared.