We all know about the mighty green bucks. The new traders in Australia always try to stay on the safe side during the major news announcement. But if you stay away from the market volatility, do you think you can earn enough money to become a millionaire? To live a high standard of life-based on trading, you must learn to take advantage of the volatile market. This article is going to change the concept of news trading. What if we tell, that you can trade during the FOMC meeting minutes based on economic projections. You might think it’s crazy but it’s possible to make a big profit during the FOMC meeting minutes.
U.S economic projection
The U.S economic projection gives the investors a clear clue regarding the market movement. Most of the time the traders think to trade the stable market condition. But fundament factors are the most powerful signal providers in the Forex market. If the FED officials come up with a hawking statement in the FOMC meeting minutes, you can expect strong economic projections for the United States. So, it’s very obvious you need to buy the green bucks. On the contrary, if the come up with a dovish statement short the green bucks against the major pairs and start making a profit.
U.S interest rate change
During the FOMC meeting minutes, the U. S declared the new interest rate. The professional traders in the CFD market cautiously wait for the interest rate decision as it gives a vital clue regarding the market movement. If there is a hike in the interest rate decision, you can expect a strong rally in the U.S dollar index. On the contrary, if the U.S cut down the interest rate you can expect a bearish rally. So, executing long orders in the AUDUSD pair on the event of a rate cut from the FED officials is a perfect example of trading the FOMC statement.
Due to the high level of market volatility, it becomes hard for retail traders to predict the price movement. Most of the time they fail to make a profit since they ignore the technical parameters. But if you draw the key support and resistance level, you will notice price test the critical level on the event of FOMC meeting minutes. So, these critical support and resistance level will be the perfect place to execute the orders. But don’t think the support and resistance level will hold forever. The market might exhibit wild spikes in both directions. As a trader, you must find the best possible signals based on technical and fundamental parameters
Dealing with the risk
You must be extremely careful with the risk factors while trading the market during the FOMC meeting minutes. If you trade with the high risk you might have to blow up the trading account. Try to follow the conservative trading style since it is one of the most effective ways to protect your trading capital. Think about the long term goals. Those who feel the urge to trade with high risk should never trade during the FOMC meeting minutes. Unless you have complete control over your emotions, it will be really hard to make consistent profit from this market. So, look at the long term goals, if you want to make some serious profit from this market. And if you ever become emotional, never such a volatile market.
Trade with the best broker
To make a profit in the highly volatile market, you must trade with the best broker. Unless you trade with a professional broker, you will experience heavy slippage and lose a big portion of the capital. On the contrary, by using the Saxo trading account, you can expect to enjoy the best possible trading environment. And this will help you to make a big profit without having any hassle. So, chose your broker very carefully to trade such a market.