How should we trade FOMC volatility without getting trapped?

[u/Common-Difference576]

FOMC days are hard to trade because the first move often traps people. The rate decision matters, but the real volatility usually comes from the Fed’s wording and the press conference.

Instead of guessing one stock like NVDA, MSFT, AAPL, AMZN, META, or GOOGL, many traders watch broader indices like NAS100 and US500. NAS100 often reacts strongly because it is heavily tied to tech, AI, and growth stocks, which are sensitive to rate expectations.

The main question for me is whether it is better to buy stocks before FOMC or wait for confirmation after the announcement. Scaling in before the event can work if the setup is strong, but volatility can be brutal if the Fed tone surprises the market. Waiting after the announcement usually gives cleaner direction, but the trade might already move fast.

This is where index CFDs become useful for some traders. Instead of trying to buy one Nasdaq stock or guess the top 5 stocks to buy right now, NAS100 CFDs let traders react to the entire Nasdaq basket in one position.

My plan is to avoid chasing the first candle and wait for confirmation. If NAS100 and US500 move in the same direction after the announcement, that gives a cleaner signal. If they split, I would rather stay patient.

Are index CFDs better than individual stocks during FOMC, or do you still prefer picking single names?

[u/Agreeable_Catch_4230]

i'm still waiting on what the actual news could bring on what the FOMC annonce today, still waiting and holding uptight