Are you ready to swim with the current? [Part I]
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Ok guys...Welcome...I know the reason you are here...
So this tutorial that I am releasing in stages over the coming days and weeks is going to be based on a series of questions I have been getting via PM ... the brief is open so keep them coming as this is going to be more or less an ask-me-anything 'AMA' format. There are a whole bunch of questions that I am sure everybody has wanted to ask and if you have been in touch via PM it can be difficult to find time for more than a 5 minute conversation as there are too many people.
The whole idea behind this AMA is to start building a framework for trading which will cover all the most important/b] questions and decision processes for managing finance and capital from a professional traders perspective. I think there is +/- 200 questions... and counting so far... to get through so I will be editing it down and cherry picking otherwise it would just be a ridiculously long tutorial series and no one would ever read it and it would have been completely useless.
This AMA format will also become aim to become a timeless piece of content so that ten years from now people will still read and study this because it's relevant. The reason it will be relevant (unfortunately?) is because of the current generation that is coming up, in particular in the Western world, has gotten completely lost in terms of finance and understanding global capital. So we need to make content available where they can understand the very basic notions which underpin global finance and capital flight .. and in turn hopefully will trigger some "eureka" moments for when they are managing their own funds.
... I am starting it here with 'Capital Flows'
It is amazing how often retail traders do not understand this basic principle which underpins volatility . It is essential to consider macro in FX markets because the FX market plays a major role in the global economy and financial system. If one cog turns, others move with it. We need to align ourselves with the cogs (or flows) from the largest sharks in the business.
Everyone in the market is seeking yield on their AUM (assets under management), from pension funds to small bedroom retail and everything else in-between. Maturity is the name of the game!
This can start to get really dry and boring if I start talking for a really long time about Capital preservation ... I don't care this is not about being a 60 second punchy one liners to keep lazy and short-cutters entertained ... we will be covering a lot on this here in these posts because it's about getting the real information out there. The basic premise when looking for reasonable returns is to understand your pain threshold with drawdowns ( DD ). In my books DD up to 10% are acceptable. I would recommend a maximum leverage of 5:1 on initial positions with risk never exceeding more than 1% of capital.
Information ...as this becomes available to market participants you will trigger manoeuvring of capital as investors seek optimal returns with minimal DD . Yes ridethepig its nice but we already know this ... point I am making is if you are not reading information objectively how can you be aligned with capital flows? I highly recommend for all those wanting to dig deeper in FX to start considering macro before diving in. Of course as with all things in life there are constraints, and it is no different in macro. We will cover more on these in the coming posts.
The waters warm ... are you ready to jump in?
So this tutorial that I am releasing in stages over the coming days and weeks is going to be based on a series of questions I have been getting via PM ... the brief is open so keep them coming as this is going to be more or less an ask-me-anything 'AMA' format. There are a whole bunch of questions that I am sure everybody has wanted to ask and if you have been in touch via PM it can be difficult to find time for more than a 5 minute conversation as there are too many people.
The whole idea behind this AMA is to start building a framework for trading which will cover all the most important/b] questions and decision processes for managing finance and capital from a professional traders perspective. I think there is +/- 200 questions... and counting so far... to get through so I will be editing it down and cherry picking otherwise it would just be a ridiculously long tutorial series and no one would ever read it and it would have been completely useless.
This AMA format will also become aim to become a timeless piece of content so that ten years from now people will still read and study this because it's relevant. The reason it will be relevant (unfortunately?) is because of the current generation that is coming up, in particular in the Western world, has gotten completely lost in terms of finance and understanding global capital. So we need to make content available where they can understand the very basic notions which underpin global finance and capital flight .. and in turn hopefully will trigger some "eureka" moments for when they are managing their own funds.
... I am starting it here with 'Capital Flows'
It is amazing how often retail traders do not understand this basic principle which underpins volatility . It is essential to consider macro in FX markets because the FX market plays a major role in the global economy and financial system. If one cog turns, others move with it. We need to align ourselves with the cogs (or flows) from the largest sharks in the business.
Everyone in the market is seeking yield on their AUM (assets under management), from pension funds to small bedroom retail and everything else in-between. Maturity is the name of the game!
This can start to get really dry and boring if I start talking for a really long time about Capital preservation ... I don't care this is not about being a 60 second punchy one liners to keep lazy and short-cutters entertained ... we will be covering a lot on this here in these posts because it's about getting the real information out there. The basic premise when looking for reasonable returns is to understand your pain threshold with drawdowns ( DD ). In my books DD up to 10% are acceptable. I would recommend a maximum leverage of 5:1 on initial positions with risk never exceeding more than 1% of capital.
Information ...as this becomes available to market participants you will trigger manoeuvring of capital as investors seek optimal returns with minimal DD . Yes ridethepig its nice but we already know this ... point I am making is if you are not reading information objectively how can you be aligned with capital flows? I highly recommend for all those wanting to dig deeper in FX to start considering macro before diving in. Of course as with all things in life there are constraints, and it is no different in macro. We will cover more on these in the coming posts.
The waters warm ... are you ready to jump in?
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