How prepared are you for the outcome from FOMC today?

18 sept.

Hello traders!

I see one of three possible decisions being made today:

• Highest probability, 25bp rate cute
  
• Low probability, 50bp rate cut
  
• Low probability, no change (they did say over many months how committed they were to 2% inflation).
  

These 3 possible decisions can have multiple outcomes.

• 25bp rate cut: Market moves in the current direction (up for assets/crypto etc)
  
• 50bp rate cut: Market turns heavy bullish
  
• No change: get ready for a very cold and painful winter and QE to turn the market back around in 3-6 months from now.
  

How are you preparing for these three possible outcomes strategically and mentally?

Here is my play:

• I have bets for the long side, so if a bullish outcome happens, I'm ready to take my profits at my targets
  
• And if there is no change and we see a crash over the next few months, I'm mentally prepared and will embrace that outcome with a smile on my face and get ready to buy again at the next bottom once the FED unleashes QE.
  

There is one last rare possible outcome: selling the news type of event. We could see a sharp decline over the next few weeks, but it will be all very bullish. There could be an attempt to mark down the prices to get folks to sell so they can buy.

Let's play smart and be prepared mentally. Trading is just like any other sport; it's a mental game.

Good luck to everyone today, and green pips to you 🤑