Home > Lessons from the trading floor > Day trading lessons: FOMC trading

Day trading lessons: FOMC trading

As a professional stock trader it is important to learn when the conditions suit trading aggressively.  To profit consistently at day trading or even swing trading, you need to “wait for money to be lying in the corner” as Jim Rogers said in Market Wizards. This roughly translates into being patient for your set ups to form.

Today I was mentoring trader who has been in our Keystone Premierprogram for two weeks. Although after only two weeks in the program she is already gross positive in her trading, she was getting a little frustrated with her progress the last week so we did a one on one session for the morning.

After sitting together for only half hour it became clear to me she was not letting the set ups form completely and was making too many mediocre trades. We were able to put our finger on one little tweak and she couldn’t wait to get back to her seat to trade again.

This brings me back to my title of this article, trading FOMC policy statements. Many newer traders will say they “need” to trade those days because there is great volatility. Yes thats usually true, but is it price action that fits into your trading model?

Remember we are not here to make money by the hour, we are trading to make money by the month. Go over previous P&L statements you have and see what your trading looks like pre FOMC and especially the day of the announcement.

If it looks good, congrats, you are one of the few traders who can trade the confusion. If you spot a trend of sloppy results and or bigger losses, take a guilt free day and a half off and go improve your golf game. Your account equity will thank you.

Come back on Friday after the dust settles, a good trend kicks in and you can climb on board.


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