The full FOMC statement for March 2023. Hikes by 25 bps

The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-3/4 to 5 percent. The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the extent of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Christopher J. Waller.

The Importance of Gut Hunches in Trading -#AnirudhSethi

Gut hunches, also known as intuition, play an important role in trading. Trading is a highly analytical and data-driven activity, but there are certain market situations where traditional analysis and data may not provide sufficient insight to make a confident trade decision. In such cases, gut hunches can be invaluable.

Gut hunches are the result of the subconscious mind processing vast amounts of information, experience, and intuition. The subconscious mind can pick up on subtle signals and patterns that the conscious mind may not be aware of. This makes gut hunches a powerful tool in trading because they can provide insight that traditional analysis and data may not reveal.

Gut hunches are especially important in high-pressure trading situations, such as when a trader is under pressure to make a quick decision in a rapidly changing market. In such situations, a trader’s gut hunch can provide a valuable sense of direction and confidence.

However, it is important to note that gut hunches should not be the sole basis for making trading decisions. Gut hunches should be used in conjunction with traditional analysis and data to make a well-rounded decision.

Traders should also be aware of their own biases and emotions when relying on gut hunches. Emotions can cloud judgment, and traders should take steps to ensure that they are making decisions based on objective information, even when relying on their intuition.

In conclusion, gut hunches play an important role in trading. They can provide valuable insight and confidence in situations where traditional analysis and data may not be sufficient. However, gut hunches should be used in conjunction with traditional analysis and data, and traders should be aware of their own biases and emotions when relying on their intuition.

Turning Goals Into Consistent Habit Patterns – #AnirudhSethi

In the world of trading, turning goals into consistent habit patterns is essential for success. Many traders set ambitious goals for themselves, such as achieving a certain level of profitability or consistently beating the market. However, without the right habits in place, these goals can remain out of reach.

One of the key habits for successful traders is discipline. This means sticking to a well-defined trading plan, even when emotions are running high. It also means maintaining a consistent approach to risk management, so that losses are minimized and profits are maximized over the long term.

Another important habit is continuous learning. The world of trading is constantly evolving, with new strategies and technologies emerging all the time. Traders who are committed to staying up-to-date and expanding their knowledge base are more likely to achieve long-term success than those who rely on outdated methods.

Finally, successful traders prioritize self-care. This means taking breaks when needed, getting enough sleep, and maintaining a healthy work-life balance. Trading can be a stressful and demanding profession, and traders who neglect their own wellbeing are more likely to experience burnout and make costly mistakes.

Overall, turning goals into consistent habit patterns is essential for success in trading. By cultivating discipline, continuous learning, and self-care, traders can set themselves up for long-term success and achieve their most ambitious goals.

How not to lose everything, after losing a Little. Not losing 90% of your wealth like the 99% of Trader – #AnirudhSethi

Here are 10 points to consider to avoid losing everything after losing a little in trading:
  1. Stick to a Trading Plan: Develop and stick to a trading plan that outlines your investment goals, risk tolerance, and trading strategies. This will help you stay disciplined and avoid impulsive decisions.
  2. Use Stop Loss Orders: Use stop-loss orders to minimize losses and protect your capital. Stop-loss orders automatically sell your position if it reaches a specific price level, helping to limit losses.
  3. Diversify Your Portfolio: Diversify your portfolio across different asset classes, sectors, and geographic regions to minimize risks. This can help protect against losses in a single asset or market.
  4. Avoid Chasing High-Risk Trades: Avoid chasing high-risk trades or hot tips that promise quick profits but carry a high risk of loss. Stick to your trading plan and avoid getting caught up in FOMO (fear of missing out).
  5. Learn from Your Mistakes: Use losses as an opportunity to learn and improve your trading strategies. Analyze what went wrong and adjust your approach accordingly.
  6. Manage Your Emotions: Don’t let emotions like fear or greed drive your trading decisions. Stay objective and make decisions based on your trading plan and analysis.
  7. Use Leverage Carefully: Leverage can magnify your gains, but it can also increase your losses. Use leverage carefully and only when you fully understand the risks involved.
  8. Invest in Quality Assets: Invest in quality assets with strong fundamentals and a proven track record. Avoid speculative investments that lack a sound investment thesis.
  9. Stay Informed: Stay informed about market trends, news, and events that may impact your portfolio. Stay up-to-date on the latest developments in your industry or sector.
  10. Seek Professional Advice: Consider seeking professional advice from a financial advisor or experienced trader. They can provide insights and guidance that can help you make informed trading decisions.

Barking up the wrong Tree in Trading -#AnirudhSethi

“Barking up the wrong tree” is an idiom that means to pursue a mistaken or misguided course of action, usually resulting in failure or disappointment. In trading, barking up the wrong tree can refer to various situations where traders make incorrect assumptions or decisions that result in losses or missed opportunities. Here are some examples of barking up the wrong tree in trading:
  1. Chasing Hot Tips: Some traders rely on tips or rumors they hear from other traders or online forums. However, these tips are often unreliable or outdated, leading traders to invest in stocks that may not perform as expected.
  2. Overreliance on Technical Analysis: Technical analysis is a popular trading strategy that involves analyzing charts and historical price data to identify patterns and trends. However, some traders rely too heavily on technical analysis without considering fundamental factors like company earnings or market trends, leading to poor trading decisions.
  3. Ignoring Risk Management: Risk management is a crucial aspect of trading that involves setting stop-loss orders, managing position sizes, and diversifying portfolios to minimize risks. Traders who ignore risk management principles are barking up the wrong tree and may suffer significant losses.
  4. Failing to Adapt to Market Conditions: Market conditions can change quickly, and traders who fail to adapt their strategies accordingly may be barking up the wrong tree. For example, a trader who relies on a long-term strategy may miss out on short-term opportunities or fail to capitalize on market volatility.
  5. Emotional Trading: Trading can be an emotional rollercoaster, and traders who make decisions based on fear, greed, or other emotions are barking up the wrong tree. Emotional trading can lead to impulsive decisions, overtrading, and poor risk management, resulting in significant losses.
In conclusion, barking up the wrong tree in trading can lead to poor decisions and losses. Successful traders avoid common mistakes and use strategies based on careful analysis, risk management, and adaptability to changing market conditions.

A Wish versus a Decision in Trading – #AnirudhSethi

  1. Based on hope or desire without a concrete plan of action.
  2. Often driven by emotions such as fear, greed, or FOMO (fear of missing out).
  3. Lacks research and analysis to support it.
  4. Can result in impulsive decisions that are not aligned with trading goals.
  5. Often based on incomplete or incorrect information.
  6. May involve chasing trends or following the crowd.
  7. Can lead to irrational risk-taking.
  8. Often leads to losses in the long run.
  9. May not take into account the trader’s risk tolerance.
  10. Can result in a lack of discipline in trading.
  1. Based on careful research, analysis, and a well-defined plan of action.
  2. Driven by logic and reason, rather than emotions.
  3. Supported by data and information from reliable sources.
  4. Aligned with the trader’s specific trading goals.
  5. Based on a thorough understanding of the market and its dynamics.
  6. May involve a contrarian approach or taking a calculated risk.
  7. Takes into account the trader’s risk management strategies.
  8. Often results in long-term profitability.
  9. Can adapt to changing market conditions.
  10. Requires discipline, patience, and consistency.
  1. Often focuses on short-term gains.
  2. May involve ignoring warning signs or red flags.
  3. Can lead to overtrading or holding onto losing positions.
  4. May involve trying to time the market or predict future price movements.
  5. Can result in missed opportunities or regrets.
  6. Often relies on luck or chance.
  7. Can lead to a lack of confidence in trading.
  8. Can result in emotional burnout or fatigue.
  9. Often lacks accountability or responsibility.
  10. May involve blaming external factors for poor performance.
  1. Focuses on long-term gains and sustainability.
  2. Takes warning signs or red flags into account to minimize risks.
  3. Involves cutting losses quickly and letting profits run.
  4. Uses technical and fundamental analysis to inform decisions.
  5. Maximizes opportunities and minimizes regrets.
  6. Minimizes reliance on luck or chance.
  7. Builds confidence through a track record of successful trades.
  8. Emphasizes self-care and balance to avoid burnout.
  9. Takes accountability and responsibility for trading outcomes.
  10. Learns from mistakes to continuously improve trading strategies.
Go to top