FOMC Day is here, and that means one thing—volatility.

When the Federal Reserve releases its statement, markets can react with extreme price swings, making it one of the most unpredictable trading days of the month.

Some traders sit on the sidelines, while others look for opportunities in the chaos.

The key is having a plan.

Leading up to the announcement, the market tends to be choppy…

But once the Fed speaks, expect sharp moves in either direction as traders react to interest rate decisions, economic outlooks, and policy changes.

This type of environment requires discipline.

Risk management is crucial, as price swings can trigger stops quickly.

Being aware of implied volatility is also important, as options pricing can act a bit wonky before and after the announcement.

At NavigationTrading, we teach traders how to adapt to different market conditions—including high-volatility events like FOMC Day.

Whether you’re looking to trade the reaction or simply manage risk, having a plan in place will keep you from getting caught up in the noise.

Stay patient, stay disciplined, and trade smart!

– The NavigationTrading Team