Wednesday, August 12, 2009

FOMC? No Problem!

Federal Open Market Commitee or FOMC announcements are cause for apprehension for market watchers and many traders. On days like this we know we're going to see more extreme volatility so we dial up to an even longer interval chart like a 12,000 Tick pictured below. If you're a scalper and you want to kill brain cells taking every trade then this approach is not for you.
But if you just want to take 20 points per contract ($1,000) and leave with $10K, $100K, $1 mil. or $10 mil. and call it a day then you'll "adjust your microscope" and zoom out.

For entry and exit use a magnified view like the 1000 Tick chart below. We had three clear confirmations for the buy around 4am, 8am and 9:30. So you knew which way it was going long before it went.


Warning!
Futures Trading Disclaimer: Trading futures and options involves the risk of loss. Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of future results. The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

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