Where to start studying economic indicators to understand the economy?

MushinT said:
I would like to understand how or where I can study indicators such as CPI, Pay Roll, PCE, PPI. Are there any books you recommend or articles? And how can this influence my trades such as daytrade and swing trade? Thank you for your attention.
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Economic Indicators for Noobs:
  • Atlas of Economic Indicators: A Visual Guide to Market Forces and the Federal Reserve (1992)
  • Bloomberg Visual Guide to Economic Indicators (2017)
  • Economic Indicators For Dummies (2011)
  • Economist Guide to Economic Indicators: Making Sense of Economics (2011)
  • First Steps in Economic Indicators (Financial Times) (2002)
  • Guide to Economic Indicators (2006)
  • Pocketbook of Economic Indicators (2002)
  • Trading Economics: A Guide to Economic Statistics for Practitioners and Students (2014)
Economic Indicators for Traders:
  • Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities (2012)
  • Trader's Guide to Key Economic Indicators (2012)
  • Using Economic Indicators to Improve Investment Analysis (2006)
  • WSJ Guide to the 50 Economic Indicators That Really Matter: From Big Macs to Zombie Banks, the Indicators Smart Investors Watch to Beat the Market (2011)
 
All economic indicators do not help you make money. There are only a select few economic indicators that help you make money. The Arora Report is well known for helping investors make money from economic indicators in real time. You have to be quick as the information moves the market very quickly.
 
One of my degrees was in International Economics, so I do understand your desire to understand these reports. That being said, however, there are a few problems with these reports and using them for trading. First, you never know when the market is going to go by the narrative "Bad news is actually Good News." In other words, oh boy, now the Fed is going to have to lower interest rates, Blah, blah, blah. Or the next day will it flip the narrative and say, "Actually, now that I think about it, Bad news IS Bad news. Oh no, now we are going into stagflation!" Often you will see some traders take some major losses who had strong beliefs ahead of time, who then scream: "That #@%#$^%$@ Market, why is it so damn illogical!!!!!"

Secondly, the last year or two there have been a puzzling number of "revisions" to these various numbers a month or two or three later. Makes one wonder just how much politics influences the Headline numbers and knee-jerk market reactions, only to be very quietly revised when hopefully nobody notices down the road ...
 
Might as well just learn the rates market directly. Learn how traders take advantage of margin at CME with the inter-market spread trades. Futures spreads ("rate spreads") are vol hedging rates trades with favorable margin treatment that utilize the DV01 ("duration") market to speculate on the yield curve and/or changes in interest rates.

These are also called ICS trades, and are levered to the moon. When these trades wind up/unwind, ALL markets reprice. Every one of those economic reports and news releases affect the markets through this mechanism anyway.

I've traded news and Fed minutes/policy rate decisions and it's here where the trades take place. A rate spread is a hedge for a cash market yield spread (interest rate basis trade across duration) and a butterfly in rates is a spread of trades like this. Time spreads ("calendars") are more complex to learn.
 
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orbit23 said:
You don't need to understand any of those things and it will not help you in day trading at all.
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I think that too, but sometimes some of my daytrades become swing trades. So I think that knowing some things about economics can be important. I really like trading on DAX. But thank you for your comment.
 
countryBoy641 said:
Probably a lot of half measures available,
but the "Bible" for fundamentals is
"Security Analysis" by Graham & Dodd.
Warren Buffett's favorite.
You can likely borrow it at your public library.
I have a copy in my bookcase.
Never read it.
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That's cool, I didn't know a good book about this, I'm going to research this book you mentioned, thank you very much, I'm thinking about creating a YouTube channel or an Instagram account talking about the German economy, so I want to better understand how it works the economy and these indicators. Thank you very much for your comment.
 
countryBoy641 said:
Probably a lot of half measures available,
but the "Bible" for fundamentals is
"Security Analysis" by Graham & Dodd.
Warren Buffett's favorite.
You can likely borrow it at your public library.
I have a copy in my bookcase.
Never read it.
More...

Hi, thank you for your comment, I want to understand more about the economy and what is happening in the world so I can talk about it on the internet, I know investopedia but I never stopped to delve deeper into the site, I will read more of this site, thank you motivated me. I also like the technical stuff more than the fundamental stuff, but I want to learn more so I can talk about these topics. Thank you for your comment!
 
MushinT said:
Hi, thank you for your comment, I want to understand more about the economy and what is happening in the world so I can talk about it on the internet, I know investopedia but I never stopped to delve deeper into the site, I will read more of this site, thank you motivated me. I also like the technical stuff more than the fundamental stuff, but I want to learn more so I can talk about these topics. Thank you for your comment!
More...


It takes years to learn all there is to know about
day trading. There are several books to read as
well, not just a handful. You always need to know
the fundamentals about anything you are trying
to learn. Especially something as complex as day
trading.
 
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