From a fundamental perspective we need to look at things from the top down.
Now…..depending on “how high you climb the beanstalk” things may appear very different as…we all climb as high as we can ( based on our own knowledge and understanding ) formulating an overall view of “what we think” is going on below. But what if you don’t climb high enough? Is your perspective “all encompassing”? Or are you only seeing things from a vantage point that ( innocently not knowing ) only allows you to see a small portion of the larger picture.
How high do you need to climb in order to formulate a macro view “wide enough” to feel that you’ve got things in the proper perspective – and in turn use this perspective to your advantage?
This of course…is wildly subjective,and always up for debate as – we all formulate our “macro views” based on our own experience, knowledge and understanding.
My macro views start with “Earth” if that says anything.I then start to work myself down.
Movement in financial markets is merely a “bi-product of human activity” so……it only makes sense to better understand who’s got the largest influence and what their intensions are no? Central Banks sit high above you and are currently in “desparation mode” world wide – doing everything they can to keep the “debt balls up in the air”, while facing the stark reality of continued “slowing global growth”.
As a retail investor don’t kid yourself. This has nothing to do with “mom and pop” buying a couple stocks with hopes of making a buck or two. The big boys push this thing around “like a skinny kid on the playground” with the sole intention of extracting your “hard earned live savings” as readily as possible – then depositing them in their offshore bank accounts.
You are at war every single day you put your money at risk in financal markets, against an enemy with every possible weapon at their disposal. Failure to recognize this generally leads to one thing, and one thing only. Failure.
If you can’t adopt a “warrior type attitude” with respect to your trading / investing then you may want to consider taking something up that’s just a little “teeny weeny” bit “safer”.