How to start trading Global Macro
Okay... at the risk of making myself sound really dumb, but hopefully helping answer some of the same questions that others on this board have... here goes...
Assume the following:
Someone paper trades US equities but not to any meaningful degree because they have to work the whole time that markets are open. This person then decides they'd rather start paper trading and eventually trading with real money in global macro markets. These markets are open 24/7 so trading can be done from home at night and the macro environment appeals to said person much more, but this person has NO idea where to begin.
I know a few answers to the questions below, but just wanted to make the post for someone who just read the "global macro" article on wikipedia and knows absolutely nothing else about it.
1 - Paper trading: can you even paper trade global macro?
a - If so, how? (besides checking currency spot rates on google and jotting it down in an excel spreadsheet) Are there sites like Investopedia or something to trade currencies, interest rates, commodities, etc. and other global macro products?
2 - Real trading: what does one need to truly get up and running? and what is highly recommended?
a - what's a good free/low-cost real-time trading platform that could be used for global macro trading?
b - how does brokerage work? what are some recommended brokerage providers?
c - what else does one need? what are some good free websites for research? what are some obvious do's/don'ts that a complete novice might not be considering?
I'm pretty interested to see the replies.. I think it's great to share some basic knowledge with each other.
Investopedia let's you do FOREX
Interactive Brokers is great for both paper and real trading.
Now I ask you, what do you consider to be global macro?
If you want to paper trade forex, here's what you need to do. Set up an account with Oanda, FXCM, Alpari, or any other good forex broker. Next, start reading A LOT. Read every post that comes out of DailyFX, and read enough of ChartSchool so that you're familiar with Fibonacci, Elliott wave, macd, RSI, etc. I'd also recommend Pip School on Babypips as well. Be careful with risk management. You can use leverage up to 50x so don't blow your account up! You can also learn a lot on forums like Forex Factory.
KeepYourDistance... YES!!
this is exactly the type of stuff I want to know! Thank you.
Now does anyone else have similar info for non-FX products? I.e. i read on some global macro blogs that people are trading on fed funds rates.. how do you trade that?
How do I learn more about managed futures or other global commodity trading products? Where is the real literature for this stuff? Something a beginner can follow and understand and eventually have intermediate/advanced knowledge of it?
Same goes for other global macro products... what else is out there? I want to learn as much as I can. All the suggestions are greatly appreciated.
i'm in a similar position to you. i am also passionate about global macro, and have recently opened a personal trading account. i've spent considerable time researching these topics. as such I have answers to all your questions and more!
but i'm not going to share any information with you out of spite. do your own homework.
I couldnt stop myself from asking this question. I thought global macro was always a style of trading...since when did markets start getting called global macro? The topic of the thread is quite misleading in that respect.
yonderworld - i'm not saying Global Macro is a market(s).. I'm simply asking what products/markets are more closely aligned with a global macro strategy. I am aware you can theoretically trade Microsoft common stock in a global macro style, but I think it's fair to say there is more to that security than a global macro approach.
I am just trying to see what types of products funds/traders that employ a global macro strategy most often trade and in what markets those products can be found in
I hope that makes a little more sense but I definitely agree my initial post was a bit misleading
Plugston - Thanks. I'm glad you have answers to all my questions, oh great sage of wisdom. Good luck with all of your new knowledge and freshly minted PTA. Thank you also for assuming I am not doing my own homework but lazily asking for you, who have already done your "considerable" research, to simply serve it to me on a platter. Your presumptuous nature and high levels of spite will take you very far in life!
Oh and all the research and homework you did - it was information that was provided by other people and made available for your benefit. Just think if all those people thought just like you.. you would know nothing.
I just saw this post. I am also interested in Global Macro. I've read and know about it a little but don't really know where to start to actually turn it into something serious, either through trading or eventually having some kind of specialized knowledge that might lead to working in this area professionally.
I was wondering how you have been doing in your information gathering/experience, and overall anything related to your post. Have you started trading any products? It would be good to hear from you.
I just saw this post. I am also interested in Global Macro. I've read and know about it a little but don't really know where to start to actually turn it into something serious, either through trading or eventually having some kind of specialized knowledge that might lead to working in this area professionally.
I was wondering how you have been doing in your information gathering/experience, and overall anything related to your post. Have you started trading any products? It would be good to hear from you.
Something tells me these guys are going to sell us something...
you can create a trading game on marketwatch.
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