My lesson from the March 2020 Fed rate cut

I still remember the scramble leading into the March 2020 emergency Fed rate cut. My mistake wasn't in anticipating the move, but in overthinking the immediate market reaction. I went short $SPX thinking the rate cut, despite being aimed at stabilizing, would initially be seen as a sign of deeper trouble, triggering a sell-off. Instead, the market interpreted it as decisive action, and we saw a sharp reversal. My stop was too tight, reflecting my conviction rather than market reality, and I got taken out for a quick loss right before the rally really took hold. The lesson: price action, especially during high-impact news, can be counter-intuitive, and having too strong a bias can blind you to immediate reality.