Become a Better Global Macro Trader
We have been in this business for a long time and have found these things to be lacking when helping struggling global macro traders improve their performance. In fact we basically look at these not as guidelines but as rules. You may have other problems but these are a few things that will help you to improve your investing results.
Capital Preservation: This goes by other names such as risk management but the same principles apply. You must learn to size your positions on a standalone basis as well as in the context of a portfolio. You also need to learn to use and adhere to stops. If you don’t then you leave yourself open to seemingly never ending losses. By not losing a lot on any trade you will have a better chance at making a lot. Simple but true.
Process is Key: The process is ten times more important then any one trade result. If you focus more on doing the same thing each time and less on the potential gains or losses in each trade your results will be far better and you will make more money. If on the other hand you obsess over each loss you will become destructive and likely try and reinvent the wheel on each new trade.
Look for Real Opportunities: Look for the best risk to reward opportunities. Many traders will stay in a trade at the expense of everything else. Between not learning how to take a loss and just a bad understanding of opportunity cost many global macro traders will stay in a position when they could have made money in a new one. Look for trades with significant upside and minimal downside. The more you do this the lower your hit rate can be.
Outside Services: Traders hesitate to pay money to services because they are usually very skeptical. While that skepticism is well warranted it is also important to keep an open mind. If you are ever lacking for ideas or are just wondering if there is more money out there then you may want to take advantage of some of the many newsletters and other outside services. You will find that some don’t fit your style but others will resonate well with you and by subscribing to 3-6 of these services you will likely plug some holes in your market knowledge.
Read, Read, and Read Some More: Trading is an ongoing pursuit and most of the best global macro traders never stop their education. If you need to learn more about economics then buy a book or take a class. If you want to know more about earnings then read a book, take an accounting class, etc. Bad at reading charts? Join the MTA and look at some technical analysis books. Basically fill in the voids that you have in knowledge.
Your Body: If you neglect your health your trading results will show it. If your mind is not at 90% or higher then there is a great chance that your decision making process will be sorely lacking. If that is the case then you will obviously not be making the kind of money that you should be. Don’t neglect your body and your mind will thank you for it.
If you are able to follow these relatively simple steps then you will be well on your way to improving your trading performance. If you are already working on these weaknesses then good for you. If not then look inside yourself and work at improving your global macro trading performance.






































