Week in Review: Sharpe Trade, LLC, Economics and … Reason

Posted on Oct 3 2015 - 8:55pm by Sharpe Trade

A number of times within podcasts, videos and text entries we at Sharpe Trade, LLC have stated that we do not believe that it is important to understand economics, in order to mechanically, profitably invest and trade in the markets.

Yet in a number of podcasts, we discuss matters pertaining to economics.

Why do we do this?

Does this contradict our statements regarding what is involved in the mechanics of trading?

Grab your cup of coffee this weekend as we discuss this in the following podcast …

If you prefer to listen to this podcast on YouTube, you can do so here.  Our podcasts are also on Podbean, and at the same time, we have an itunes feed and you can find our podcasts on itunes if you prefer to subscribe there …

1 Comment so far. Feel free to join this conversation.

  1. NewLife October 5, 2015 at 10:59 am - Reply

    You nailed it with the point that there is a complexity to macro economics that not only isn’t going to help most traders, but quite frankly, is way over their head. This includes myself.

    Having read some articles and one short book on macro, I realized that it’s not only a really dense topic with a lot of variables, but that the variables themselves can have so many different effects on each other that even the most sophisticated modeling and interpretations from the greatest minds often lead to unintended consequences and wrong predictions. It’s a lifelong pursuit for those who really want to understand.Not a hobby.

    Buying a dip in an uptrend with high volume is a decision that can be hard enough to make. Trying to decide how a trade deficit with Japan, steel prices and slowing growth rates in emerging markets will effect automobile stocks and subsequently the indices I trade just sounds like a nightmare.

    This was so pronounced in the world of stackers. A bunch of unqualified analyzers and their dubious analysis serving only to justify a commodity that was crushed more and more as their buying justifications increasingly became more convoluted. They’d all have done better had they just looked at a weekly chart and noticed that the price was collapsing, and still is.

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