That is complete batshit insanity.
Zero-knowledge trading is insane in any instrument, but particularly so in IR futures.
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US Treasury Notes
- Thread starter Neuroway
- Start date
Zero-knowledge trading is insane in any instrument, but particularly so in IR futures.
?I think they are making the cost of borrowing cheaper to support the level of demand in the economy. A lower rate of return usually means a lower cost of lending and encourages borrowing, this may have been made necessary by the high levels of tax requiring monetary policy to be eased to hit money circulation targets. A must in a highly geared economy.
I hear frequently on ET ...trade what you see...price action.....ignore fundamentals and so on.
Why then could not treasuries be traded without the slightest, and I do mean slightest, knowledge of them?
Perhaps I could add a general observation based on quite a few years of trading, investing, and making mistakes. I am of the opinion that the shorter the time frame the more "trading what you see" applies, and the longer the time frame the more knowledge of macroeconomics and fundamentals becomes helpful. At longer time frames it becomes essential. In the limit, with the exception of trading on inside information, mis-pricing, or atypical opportunity, one either keeps abreast of Fed operations, policy and interest rates, and becomes a "macroeconomic trader," or else one cashes in one's chips (what's left of them) and goes home.You pinned it. Exactly. Happy trading, eurusdzn.
While generally agreeing, I would also suggest that the 10% of "trade what you see" that isn't pure apophenia is really behavioral economics. Assuming that the behavioral economics factors behind Treasury trading are identical to that behind crude futures or hog bellies is a rather rash assumption to make as well.Perhaps I could add a general observation based on quite a few years of trading, investing, and making mistakes. I am of the opinion that the shorter the time frame the more "trading what you see" applies, and the longer the time frame the more knowledge of macroeconomics and fundamentals becomes helpful. At longer time frames it becomes essential. In the limit, with the exception of trading on inside information, mis-pricing, or atypical opportunity, one either keeps abreast of Fed operations, policy and interest rates, and becomes a "macroeconomic trader," or else one cashes in one's chips (what's left of them) and goes home.