The listening ear of the market.
Good afternoon Traders,
Today is the FOMC rate decision at 2 PM EST. Its highly expected on the street that interest rates will be cut again. The real question is by how much ? Wallstreet will pay close attention to the verbiage of fed chair Powell words. I anticipate seeing some volatility in the market today no matter what happens, however if wallstreet doesn’t like the tone of his words we might see volatility become very intense.
It doesn’t matter what the FOMC rate decision outcome is today, the best traders will stick to their guns and trade their prospective and perspective by following their charts and strategy. The pros will trade what they see as opportunity not emotionally attached to news headlines and sound bites.
(I truly hope you get my prospective and perspective humor)
I tell traders all the time when in doubt and you don’t know what to do the educated thing to do is nothing. Don’t ever feel like you have to get in the market out of fear of missing out on a move. Don’t ever feel like just because you see volatility or action in the market you must be involved. Remember if you don’t have a strategy before entering a trade you will be relying totally on hope and luck to get you through. In my opinion hope and luck are not statistically sound ways to manage risk or trade.
Some of you will ignore these words because you’re a trade action bandit. Some of you will ignore these words because you’re still on the simulator and you can’t lose real money when clicking the mouse. Some of you will ignore these words because you believe you can get in and out of the market very quickly without getting hurt to badly.
Then there’s the very few who will follow what I said precisely. You will wait patiently until your advantage reveals itself and execute your trading plan again and again compounding your results until you have used the market as leverage to increase your risk parameters which means you are now part of the 5% of traders who has success.
The real question is which one are you?
But keep in mind all of this is just my opinion so take it with a grain of salt.
Have a great trading day. I look forward to talking to you in the trading sessions.