Yesterday morning it happened again…
“Tim, what are your thoughts on the Fed?” Listen, preparation beats improvisation every single day. If you really want to succeed at trading, you’re going to have to learn the power of daily preparation. Do you want to know who tries to improvise in the markets? I learned this from Tim Sykes…
Today At 2PM ET Tim Sykes Reveals
The #1 Strategy He’s Trading Now
The Big Picture
That’s right, those who try to improvise are clowns. It rarely ends well.
By now you know that I don’t anticipate, I react.
So, yesterday before the Fed decision, instead of trying to guess what was going to happen, I went through a process.
It starts with questions…
- What do I need to see before acting on a trade?
- What do I do if the market tanks?
- What if it rips?
- Do I have orders ready on the stocks I’m watching?
- If so, do they still make sense?
- What if the setup skips the pattern?
So, when someone asked me what I thought about the Fed during Pre-Market Prep, my answer was…
“I don’t know what Kevin Warsh is going to do, I just react.”
That means we trade the price action. But to trade the price action…
We Prepare To Win the Day
Now, when we go through the process and answer the questions, we know how to react to the price action.
Those who want to trade like a pro will have orders ready.
You don’t have to execute orders, okay? But if you have them ready when the setup turns into a pattern, there’s a better chance of executing your plan.
There’s a better chance of getting the number of shares you wanted at the price you planned for.
Now, some people don’t like this answer. They want me to say “I think the Fed is going to do this, so you should do this.”
Nobody but Kevin Warsh and the other Federal Open Market Committee members knew what was gonna happen.
A lot of people said they would raise rates. But trying to play guessing games with trades never ends well.
My Take
Everything we do, every day, follows a process. Now, some people want every trade to be a win. They expect to know ahead of time. That’s not how trading works. You only have control over one thing: yourself.
So, start to develop a process. Follow it every day, refine it, and become a real trader.
Watchlist
On Tuesday (Sept. 15), DataMEDS AI, Inc. (NASDAQ: MEDS) announced it had acquired AI cancer diagnostics laboratory business Helomics Corporation from Axe Compute Inc. (NASDAQ: AGPU).
The stock ran during the day but the big move happened yesterday:
MEDS, 9/15-16/26, Oracle winner, key levels to watch
MEDs formed a cup and handle in premarket yesterday. At the market open it hit the Oracle signal and never looked back.
At the close it was still hugging VWAP. So, it could get squeezy today. Watch for the key levels and breaks of resistance at $9.95. If it goes, the target is today’s major resistance at $14.80.
On My Radar
- FOMC statement (always read these when the release)
- Yesterday, South Korean memory maker SK hynix Inc. (NASDAQ: SKHY) announced a potential deal with Intel (NASDAQ: INTC) to manufacture memory in the US
- Mentioned before be relevant for today’s newsletter: “Discipline Equals Freedom: Field Manual Mk1-MOD1” by Jocko Willink