Are You Preparing For the Fed Announcement

• Posted by Greg Harmon
• on September 18th, 2013

I threw out a question to my followers just after the close yesterday: What should I write about in the morning ahead of the fed statement? To their credit, my stream seems to be very steady and calm. I consider myself lucky that this is the case. Some asked me to detail my breakfast (black coffee, English Muffin and some raspberries), or my favorite wine and food pairings (Lamb Chops with a nice Super Tuscan). Still another suggested a guest post from my wife about what it is like to be married to a trader.

Why do I think this is great? Not one asked for how to manage risk or adjust trade size. That is great news. It tells me that my readers already know that today is just another day. That the preparation that they do every day for every trade is what is important and that process has already prepared them for anything the Fed can throw at them. Today is not the day to start to think about what to do if the Fed announces a $25 billion taper or suggests that the economy is so weak that they need to add stimulus. More over, it is not the day to prepare for any exogenous event. That was before you took the trade. Today may release a powder keg and see violent swings in the market around the announcement. Then again, it may not. What is certain is that it will produce a lot of noise. My favorite response to my question last night was a plea that individuals should not panic in anticipation of Fed action. If you have prepared ahead of time you also should not be panicked today. Carry on wise readers. Perhaps I will share the lunch menu later.

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