An unusual source of trading wisdom

Yesterday I was chatting with my dad a bit about the up-and-coming Zoomers.

Gen Z doesn’t have an official name yet, but I think that one might stick.

Anyway, something that’s fascinating to me about that generation is how much of the digital world is natural to them. I grew up in the 90s, with a chunk of my childhood pre-high speed internet, so there’s an analog world I remember.

But Zoomers?

They grew up in the high-speed internet, video-on-demand, super digital world.

Being online is almost their natural state of existence. Which means that the analog world is both old & new to them. Old in terms of time & technology, but new in terms of experience.

These are people who are discovering the benefits of slowing down to read a (physical) book ... to write in (physical) journals ... to listen to music on (physical) records ... etc.

What’s old is new again.

I often find myself believing a foolish idea that new is always better.

Searching for new trading techniques, or new companies, or new ideas. But there’s so much hard-won insight that exists in older experience. The reality is that trading is ultimately a game of psychology.

That traders win by mastering emotions.

And because the psychology of people, in general, never changes, then any powerful insights from older traders -- even ones who have passed on from this mortal coil and left us with their writings -- are continually useful.

Sure, inflation changes the numbers and some things are tied to the era they lived in.

But there’s still a lot of wisdom to be gleaned from older sources.

What’s old is wise again.

Yahoo Finance

Well, it’s Fed day! The consensus is that the Fed will hold rates steady for a 5th consecutive meeting. I read another article that said since 2 of the Board of Governors have publicly stated that rates should be decreased, this is the most divided the Fed has been since 1993. However 2 of 7 does not make a majority.

The market will largely hold its collective breath until this afternoon when the decision is announced, then probably close mixed with no rate cut or really, really green if they lower the rates at all.

US economic growth rebounded in Q2 as the widest swath of President Trump's tariffs took hold.

Yahoo Finance

The second article is a little fodder to keep the rates the same.  When the economy gets going, so does inflation, generally. The Fed could use this for justification to keep the rates constant.

Comments: This is what I would call “hovering.”  The markets are slightly mixed with no big moves green or red.  Everyone is sitting on their hands waiting for the Fed. It’s a good morning to walk the dog.

As a general rule, I don’t like to open new trades on Fed day before they make their announcement. Because the announcement is at 2 pm ET, that doesn’t usually leave room for a morning trade idea.

That said, I do have an idea for a 1% trade into next Friday to consider...