The Key to Trading Market
by Frank Soler of SolerInvestments.com
While I sit here waiting for the FOMC (Federal Open Market
Committee) decision on interest rates, I figured it was
a good time to talk about trading big news events of this
Usually, in the lead up to the announcement the markets
will stay a bit flat.
But, as it gets closer and closer to the actual event they'll
become more and more volatile.
When the rate decision (or other big news) is released,
the markets will move strongly one way or another.
Then, it'll retrace some of this move, usually also quite
There are numerous strategies you can use to trade these
huge swings, but which is best?
It depends (sorry if you were hoping for a one size fits
all answer here).
IF you're a trader who normally trades off of daily charts,
you need to sit back and wait for what you normally look
for on daily charts to form.
IF you normally trade the 60 minute time-frame, you need
to wait for set-ups you normally look for
on 60 minute charts to form.
I think you get the idea here: You look for patterns you
normally look for on the time-frames you normally trade
And then you trade them using the strategies you
Sound too simple and boring? Good, that's real trading.
Of course, if you want the excitement of trading 5 minute
charts when you usually trade 6 hour charts, and want to
do so when the markets our moving at extreme speeds, and
using a strategy you've never tried before..
Well, go ahead, but the market won't even thank you for
Frank Soler is a successful trader and Registered Investment
Advisor. His company provides real-time Forex,
Futures, Options, and Stock Picks, an eye-opening Trading
Blog, and a free
online trading education center.