Jerome Powell's Speech – The Nightmare for Long/Short Traders!

In the financial world, nothing is more terrifying than the speeches of Fed Chair Jerome Powell – and for leveraged traders (long/short), it could be the “death candle” that wipes out accounts in just a few seconds.

Why are Powell's speeches so dangerous?

1. The market reacts immediately to every word: Just a hint from Powell saying “inflation is still persistent” – asset prices instantly plummet. If he shifts to “ready to cut interest rates” – the entire market turns bright green right away.

2. Unpredictable: Even if the market expects him to “talk soft,” Powell can unexpectedly turn hawkish, or vice versa – causing trading positions to reverse without warning.

3. Extreme volatility: Within just the first few minutes of the speech, asset pairs can fluctuate by tens of percent, “sweeping” both long and short positions at the same time – a phenomenon traders call “double kill.”

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A warning for traders:

• If you are using leverage, stay out when Powell is about to speak.

• Check the economic event calendar (FOMC, CPI, Non-farm…) and keep your account safe before the “shark waves.”

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Conclusion:

In the financial market, Powell doesn’t say much – but every time he does, it’s “red all over the board.” Always remember: Keeping your capital safe is essential for long-term fighting.