The Fed Play:
Unexpected news often introduces volatility due to the market's general unpreparedness. This can create risks but also opportunities, depending on the outcome.
Conversely, expected news, such as a Federal Reserve announcement, tends to disadvantage smaller market players. The advantage lies with the well-informed, and volatility poses significant risks.
Risk-Averse Strategy:
The most risk-averse approach is to avoid exposing capital around the Fed announcement entirely, thereby sidestepping volatility risk.
Moderate Risk Strategy:
A somewhat riskier option involves maintaining an already established, financed position. This way, only the free market money is at risk.
High Risk Strategy:
An even higher risk play involves participating with a significantly reduced position size.
Advanced Strategy:
The highest risk strategy is implementing an advanced Fed play tactic based on fading momentum. This should only be attempted by those highly experienced in scalping techniques and with many years of practice in this specific approach.
KK FED Scalp Play:
1. Observation: Begin by observing the initial momentum move.
2. Wait: Await a 90-110% bounce (retracement)
3. Fade: Fade that bounce in the direction of the original momentum move (1,2,3 play).
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