Millionaire TradersQ : Right, run us through your FOMC game plan yesterday
because FOMC is always one of the more interesting days in the
futures markets.
A: What I do is I usually watch whatever the initial reaction is.
I’m not a big fader, but I will fade that.
Q: How do you fade it? Do you wait for the candles to turn
around?
A: When the announcement comes out and they yank it up, I’ll
fade that. Or vice versa if it also comes up and they yank it down,
I’ll buy.
Q: At what point do you start? Yesterday they yanked it up first,
then they brought it down, and then they brought it back up. On
that first initial thrust forward, did you get short?
A: I shorted it, yes. It hit a moving average that I watch right on
the noggin.
Q: At that point you weren’t waiting for any weakness in the
price action, you just got short on the move?
A: Right.
Q: What would you have done if it continued to move forward?
How much of a rubber band were you willing to give yourself at
that point, on that trade?
A: I let that go about 1.6 to 1.8 against me. However, I have a
few spots. I won’t put all my stuff in at one spot—so that I get a
nice average—and it really doesn’t go above that. Like I said, if it
does...hastalavista. Yesterday I played it to a T. I shorted from
my moving average, and then I caught most of that bottom.