The US Federal reserve is meeting soon. Guy said not to trade during this time. I just wanted to know why and what the problems could be of doing so?
Posted by Sid Li on 02 April 2018 05:59 PM

Trading flags is a technical trading method.

We don’t want a major news event to destabilise our method, so the safest thing to do is to sit tight while big announcements, such as Earnings reports and Federal Reserve statements are being made.

So for example, if a company has their earnings report next week, it may be an idea to trade other stocks in the meantime, and be wary of the earnings season in general, as one piece of news can completely rock the market and destroy even the neatest flags.

At the same time these news events can catapult stocks favourably for us in context of flags, but it’s a bit of a gamble, so the safest option is to be cautious around that time.

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