Global Macro Trading

Global macro trading is commonly referred to as macro trading, global macro, big picture trading, global investing, pure speculation, etc.  There are a gazilliong different names but the underlying themes remains the same.  The global macro trader is focused on the best risk to reward opportutnities on the globe.  If stocks are good in India he might be there.  If bonds are looking great in South Africa she might be active there.  And if crude oil is looking good for the world in general he might be long the black gold.

Hopefully this paints the picture that the macro trader makes money by following every asset class in every country that is tradeable.  If you don’t then you are regularly leaving money on the table and in the same stroke are taking undue risk.

So how does a macro trader track all of this?  In the old days it was quite hard and most traders only traded the major markets of the world.  With the internet and technology we are able to track just about anything anywhere.  Using anything from an Excel spreadsheet to a Bloomberg terminal you can check quotes, get fundamental data, and even track sentiment on so many securities and markets that you have no excuse not to be doing it.

The majority of successful global macro traders use different timing models to cue them in on when a market is favorable or unfavorable and then they will go and dig deeper to make sure that it is a valid opportunity and that it has the proper risk to reward characteristics.  By using technology and different data series we are able to more efficiently find great trades across the globe.

For the retail trader that is interested in getting into global macro trading there are some wonderful and relatively new securities in the market today that enable you to trade in many markets that would otherwise be hard to get into to.  ETF’s or exchange traded funds are securities that trade like stocks but represent anything from the SP500, to platinum, to Malaysian equities, to the South African Rand.  Using these easily accessible instruments you can easily and at a low cost access the global markets.  Now you really don’t have an excuse to not look into global macro trading.

Become a Macro Trader