How useful is Economics as a trader?

[Stosh]

Quote from hoodooman:

I have bs and ms degrees in physics, math and aeronautical engineering. I know what science it.

For example, you can go to the moon with science and so far we've been going straight to hell with economics.

We've been going to hell believing in Keynesian economics, which sounds good in theory. But, how many gov'ts are going to save up a surplus in good times to use in the bad times (so-called countercyclical policy). In practice, they borrow and spend in the good times, and borrow and spend in the bad times.
Some day, if the country survives long enough, we will have a crisis so bad that we might get a constitutional amendment to limit spending......also need to put the Fed's monetary policy on some sort of automatic pilot (as Milton Friedman suggested)...............when pigs fly. Stosh

 

[PiggyBank]

Quote from intradaybill:

Hey, moon is a boring place. No O2, no clubs, no girls nothing. Hell is very interesting, especially if you cut a deal with the boss...

 

[PiggyBank]

Quote from Stosh:

We've been going to hell believing in Keynesian economics, which sounds good in theory. But, how many gov'ts are going to save up a surplus in good times to use in the bad times (so-called countercyclical policy). In practice, they borrow and spend in the good times, and borrow and spend in the bad times.
Some day, if the country survives long enough, we will have a crisis so bad that we might get a constitutional amendment to limit spending......also need to put the Fed's monetary policy on some sort of automatic pilot (as Milton Friedman suggested)...............when pigs fly. Stosh

^Agreed

 

[snp500]

Quote from TraderTactics:

I've read various bits about this over the past year and it seems that opinion is quite divided. Some think that Economics is essential and others think it is totally useless. I'd be interested to know what your opinion is?

Very useful. It is true that volume drives prices, so it's possible to be a "pure" technical trader. I caution this with a thought for you to ponder upon: the largest volume activity in the markets is swayed by fundamental events.

Take for example late 2008 -- it wasn't a bunch of technicians sitting around that decided to flood the market with volume and volatility. The underlying fundamentals changed, which caused for the increase in volume and volatility.

 

[noob_trad3r]

Quote from TraderTactics:

I've read various bits about this over the past year and it seems that opinion is quite divided. Some think that Economics is essential and others think it is totally useless. I'd be interested to know what your opinion is?

If you are a pure slots player style trader than no economics knowledge is needed.

Just play the slots all day.

 

[TraderTactics]

Thanks for giving out these

 

[Wallace]

from mpov economics is a too abstract and dispersed subject to render into a useable
tool to trade with

knowing what i know now, i would though study 'finance' and think it Would be useful

what impressed me when the subprime fiasco was raging was one Andrew Lahde who
made millions for himself and clients - returned 866% - by betting against the collapse:
http://www.bittenandbound.com/2008/...e-calls-it-quits-at-lahde-capital-management/

for me, as noob_trad3r said, i'm a "pure slots [charts] player style trader"

 

[unretired]

Quote from TraderTactics:

I've read various bits about this over the past year and it seems that opinion is quite divided. Some think that Economics is essential and others think it is totally useless. I'd be interested to know what your opinion is?

The smaller the slice of time for trades the less import "large view" economics has.
"Small view" economics is in every transaction by definition, as profits and losses.

I stayed away from the multitude of descriptions of "economics"
such as macro or micro, bubble or market-share
since they can "and should" all be seen as evolving from
basic commerce with its appreciating or depreciating measure.

Simply put ... successful short term traders must have disciplined liquidity and speculation economics or they do not accumulate.

Successful long term investors must have disciplined accumulation economics to secure their nest egg.

 

[Martinghoul]

Quote from TraderTactics:

I've read various bits about this over the past year and it seems that opinion is quite divided. Some think that Economics is essential and others think it is totally useless. I'd be interested to know what your opinion is?

Essential...

 

[psytrade]

A good trader should be able to create their own sense of economics- through viewing order flow, liquidity, sector rotation, trading regimes in various asset classes... etc

The fact that most of them don't have this sense well developed is probably why most fail in the long run.

A well developed real life sensibility to think for oneself as well as the ability to tape read or simply "read the market" results in a good developed trader, who is commonly considered a "macro trader"

A formally developed sense of university economics is probably a bad thing, but most reputable trading firms are able to hire people who think for themselves rather than those thinking from an academic playbook.