This content is restricted to CTU members
We take a look at the SPY on the 5 minute chart. This is when an FOMC event is taking place. After Clay sets up the trade, we establish our logical stop loss level and target. We all have to remember that in a high volatility news driven event, it is HIGHLY LIKELY you will get stopped out. The key point is that you have a stop in place and it is logical. We see that after it touches the 200 simple moving average it has a 15 minute bounce good for over a dollar. As we trail our stop up we see a huge candle wick down which should have generally stopped everyone out. After a discussion about various ways to mitigate and manage risk, we see that the next 2 hours provided quite the roller coaster of moves. These types of trades are not for everyone and as I said above, carry a very large possibility of stopping out but they also provide some great opportunity.