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Why you should not trade, when Federal Rate expect to raise?

3/15/2017

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Just 3 hours to FOMC Statement, I the regular FOMC meeting usually traders like us as a retail traders with the small capital compare to the big banks, prefer to stay out of market, manage open positions, and do not open new positions. But today Federal Funds Rate is add to the FOMC, Expert expect raise rate from 0.75% to 1.00%. So why we should stop trading? Firstly, as a trader keep our capital safe is the our priority. This is the first responsibility for the traders. Secondly, this is the time which big companies, Big banks, financial institutions  come to play. They already set their huge volume of orders into the market. Third, In these kinda events most of the time spread increase, it means you should pay more if you wanna trade, and It doesn't make sense for retail traders. Finally, uncertainty will increased, when It comes to the forecasting, expectation, Trading come with uncertainty which is not good, because it will increase risk. We are not like Risk, traders always try to control, manage the risk, less risk is better. So for the all reasons above, close your chart, and enjoy your life by reading a great book, and sip of tea.
1 Comment
Kitchen Kara link
7/14/2021 09:43:46 am

Great share thanks for writing this

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DISCLAIMER: Futures, stocks, Forex, and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, Forex, and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. The highly leveraged nature of futures trading means that small market movements will have a great impact on your trading account and this can work against you, leading to large losses or can work for you, leading to large gains. You are responsible for all the risks and financial resources you use and for the chosen trading system. You should not engage in trading unless you fully understand the nature of the transactions you are entering into and the extent of your exposure to loss. If you do not fully understand these risks you must seek independent advice from your financial advisor.

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