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Need book recommendations for Macro analysis

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  • First Post: Aug 5, 2013 3:10pm Aug 5, 2013 3:10pm
Hi, do any of you have any book recommendations for learning about Macro?
Macro.... what? Economics?

If that's the case, what would be your definition of Macro Economics? (So that we're all on the same page)
I'm not trying to convince anyone. I'm not in the "convincing" business.
I think it is macro-economics. I was reading Market Wizards and one of the guys was an expert 'Macro' guy. He talked about things that I couldn't understand. So I want to learn about these things that impact a currency in detail. Same thing when I was watching the ECB press conference last week - the audience asks the guy some questions and I had no idea what they where talking about. Also, I am aware that other markets effect a currency. So I want to know which ones and why. I want to know what bonds are. What is LIBOR, Euribor, yield curves, etc...Any recommendations?:-)
Macro is such a varied subject that you'll probably need several books (at least) to get a good understanding. For some reason no books come to mind though I've read many... but besides a basic general economic textbook (like Principles of Macroeconomics by Mankiw), you'll want to mostly read books specializing in specific subjects like inflation, monetary policy, ... again my mind is blank for some reason but that's somewhere to start I guess. If you're interested in bonds and money market stuff then you're not gonna find that in macro books, you should probably start looking at stuff like Stigum and Fabozzi.

Mind you, don't go expecting to become a better trader by reading any of that... purely for informational purposes/academic interest.
Economic Indicators for Dummies - Michael Griffiths
WSJ Guide to the 50 Economic Indicators That Really Matter - Simon Constable & Robert Wright
Currency Trading for Dummies - Brian Dolan
Intermarket Analysis - John J. Murphy
Currency Trading and Intermarket Analysis - Ashraf Laidi
The Alchemy of Finance - George Soros
si hoc legere scis nimium eruditionis habes
Quoting eurotrash
Mind you, don't go expecting to become a better trader by reading any of that... purely for informational purposes/academic interest.

Really? George Soros is a Macro trader.
Quoting numbnuts
he Alchemy of Finance - George Soros
Thanks. I didn't know George had any books.
Quoting pbylina
I think it is macro-economics. I was reading Market Wizards and one of the guys was an expert 'Macro' guy. He talked about things that I couldn't understand. So I want to learn about these things that impact a currency in detail. Same thing when I was watching the ECB press conference last week - the audience asks the guy some questions and I had no idea what they where talking about. Also, I am aware that other markets effect a currency. So I want to know which ones and why. I want to know what bonds are. [b]What is LIBOR, Euribor, yield...
Just use wikipedia, it will teach you enough - the best way to learn the significance of them is by watching them and playing around with them.

Also, I can bet only 1% of the traders here will understand the significance of this chart, plus you don't really need to know it. Before learning about these things - know what you need to learn. FRA's are near useless but have a strong relationship to IBOR's etc as you asked, but you don't need to know about these.
Attached Image (click to enlarge)
Click to Enlarge Name: AUD FRA.png Size: 169 KB
Quoting JeremyWS
{quote} Just use wikipedia, it will teach you enough - the best way to learn the significance of them is by watching them and playing around with them.
Ok thanks, thats what I'll do!

Quote
Also, I can bet only 1% of the traders here will understand the significance of this chart, plus you don't really need to know it. Before learning about these things - know what you need to learn. FRA's are near useless but have a strong relationship to IBOR's etc as you asked, but you don't need to know about these. {image}

Yeah...I dont't understand the significance. Looks like a spread of AUD T-bills/Bonds...
Quoting pbylina
{quote} Ok thanks, thats what I'll do! {quote} Yeah...I dont't understand the significance. Looks like a spread of AUD T-bills/Bonds...
its 1x4 FRA and 3x6 FRA and the spread between - it shows the "libor equivalent" for AUS in 4 months and 6 months vs 1 and 3, and is used to show potential changes in base rates. This is where many people get their numbers for chances of rate cuts. Completely irrelevant for the average trader...
You can learn economics, from Youtube.
I learn most of my subject there... it is easier to understand for me as I hate reading stuff!
Quoting pbylina
{quote} Thanks. I didn't know George had any books.

Macro trading is a trading style that capitalizes on the correct anticipation of global macro flows. You can learn about macro trading from Soros if you manage to follow his thought process, it's not easy to say the least. An easy read would be the Market Wizards series by Jack Schwager, there are some good macro trade examples shared by macro professionals. In order to actually learn macro you would need to open long term charts and find out what caused the market to make big moves. Then you study the current conditions and try to anticipate future moves. Do not confuse macro with fundamental analysis, fundamentals don't move the market as described in EMH, they are just a variable in macro analysis.
BTW, you should read this guy's posts if you're interested in global macro.
Quoting seagreen
{quote} An easy read would be the Market Wizards series by Jack Schwager, there are some good macro trade examples shared by macro professionals.
I'm definitely going to do that! I just got done with the first half of Hedge Fund Market Wizards. The first guy got me interested in this macro trading.

Quote
In order to actually learn macro you would need to open long term charts and find out what caused the market to make big moves. Then you study the current conditions and try to anticipate future moves.
Thanks for the advice - definitely going to try this!
Quoting seagreen
BTW, you should read this guy's posts if you're interested in global macro.

Thanks seagreen. I enjoyed reading this guys: http://www.forexfactory.com/showthread.php?t=343259
Cool, that there other people out there interested in global macro analysis. I am pretty sure we'll all be retiring with steadily accumulated wealth, instead of having to tell our grandchildren one day about extreme volatility swings in equity, while trying to rely solely on technical analysis!

Check out some of the articles I wrote here http://www.pulse-research.org/articles/ and also my personal blog here http://reneriedel.wordpress.com/.

I've devoted most of my time in figuring out the markets from that perspective, let me know what you think.
This thread has some good stuff on Macro and Cycles of money flow.

http://www.forexfactory.com/showthread.php?t=216097

I would also advise you to read bloomberg/rueters articles every day about Forex its gonna take time but its easy to understand how and what economic data gets translated into prices day to day.
.
Steven Drobny - "Inside the house of money"

It is a market wizards kind of book, with only hedge fund traders interviews, mostly employing macro strategies... A fascinating read that will help you to translate macroeconomics into trading ideas.
Enter Signature
Quoting nasir.khan
This thread has some good stuff on Macro and Cycles of money flow. http://www.forexfactory.com/showthread.php?t=216097
Awesome!

Quote
I would also advise you to read bloomberg/rueters articles every day about Forex its gonna take time but its easy to understand how and what economic data gets translated into prices day to day. .
Ok.
Quoting RPropShop
Steven Drobny - \"Inside the house of money\" It is a market wizards kind of book, with only hedge fund traders interviews, mostly employing macro strategies... A fascinating read that will help you to translate macroeconomics into trading ideas.

I will read it, thanks.;-) O and btw: nice trading!
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