Hey friend,
The Fed meets today and delivers its decision tomorrow.
Not much on the economic calendar today.
We got a bit of housing data, which showed new construction of single-family homes plunging to the lowest level since May 2020.
And we also had some data on import prices – which came in much higher than expectations, which will only add to inflationary pressures.
Let’s see how the markets have been moving.
The Daily Direction
Note: Indexes closed sharply higher yesterday but have been moving largely lower today. Still – all index directions remain upward.
The Daily Nugget
Didn’t get shares in the SpaceX IPO? Before you rush out to buy them on the open market, make sure you watch this critical video from Ross first – because it tells you exactly WHEN to buy.
The Daily Nugget
Understand what it takes for an edge to work.
Every successful trader has an edge.
Many of these edges can – and should – be copied.
But before you go ahead and do that, it is critical you understand what it takes for an edge to work.
For instance, consider the Medallion Fund – the most successful hedge fund of all time.
They made an unprecedented 66% average annual return before fees – absolutely crushing Warren Buffett’s performance.
You may have heard about this before.
But what you probably haven’t heard is that – to achieve these returns – the Medallion Fund took on extremely high amounts of leverage…
Often averaging 12.5 times its equity.
That means if one of their positions dropped just 8% – they would be completely wiped out on that position.
Did they have an incredible edge? Yes.
Did it result in absolutely incredible returns? Yes.
But to make that edge work, they had to take on dangerous levels of leverage – amounts that would be irresponsible for most retail traders.
This is what we mean when we talk about understanding what it takes for an edge to work.
You need an edge that is possible for you to follow…
AND one that you have the ability to make work.
Always keep that in mind.
The Traders Agency Team
