Short post for today but the question usually comes up on what a trader should do during a major financial announcement, like today's Fed (Federal Reserve) announcement? In what surprised very few, today the Fed kept interest rates at their current level instead of raising them. Regardless of what the decision was I can guarantee one thing.... At 2:00pm EST, on every Federal Reserve announcement day, the markets go crazy, wonky even. I don't care how sophisticated your software is. Generally when announcements are released, the market swings so drastically that it's near impossible to profit, unless you're trading on a 1 minute time frame and/or initiating some serious short term trades. Be safe, stop your trading at 1:59pm EST and call it a day. Your trading account will thank you in the end. Take it from me who has learned the hard way in the past. Leave that risky game for the other guys and prepare for the next trading day. Cheers.
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