Global Macro Trading

Discussion in 'Trading' started by OneHipCat, Apr 24, 2004.

  1. I'm new to this board, but it seems to me that most traders here are primarily TA orientated and trade on a very short term basis. Which is surprising to me because from what I've read all the best professional traders are Macro orientated.

    So I would like to know if there are any traders on this board who use Marco strategies?
  2. I am getting more into it as part of my position trading...

    The book "Inside the House of Money" (Steven Drobny) is an excellent read and is the macro trading answer to the more general Market Wizards series...

    It is not an understatement to state that if you enjoyed Market Wizards (and who didn't?) you will thoroughly enjoy reading about how these hedge fund managers do global macro...
  3. prop shops are not set up for multiple asset class trading, even interactive brokers is very limited in their offerings.

    one needs institutional relationships to trade every market around the world.

    there is also a question of capital, since global macro is usually arbitrage/pairs one needs tremendous resources.
  4. Thata only a tiny subset of global macro...
  5. what are you talking about?
    every FX trade is basically a pair trade.
  6. Even if you want to call an FX trade a pair trade it is only a subset of global macro trading... and so is arbitrage only a subset...

    And who says you need tremendous resources for many aspects of global macro trading?
  7. The main problem with global macro is that the trades can take a long time to unfold, and timing them becomes just that much more difficult. Also, a lot can happen in six months in the markets, and you will be confronted with a lot of variable information. It requires a great deal of nerve, and belief in your ideas, as well as a lot of need to be CORRECT. The big problem is your tendency to be correct & but too early or just flat out wrong about what you thought was going to happen.

    I think that's why most people just throw up their hands and chuck it for short term trading. There's more "action."
  8. True...
  9. candle, please come back to talk about macro, when you get beyond Drobny's book..
    #10     Jan 2, 2007