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Saturday, 12 March 2011

Welcome Back

Welcome

Welcome to Eazeetrade. The goal behind this blog is to document my thoughts on global equities, macro-economic trends, economic theory and asset allocation.

A bit of background about me and my point of departure. I have spent several years trading and analyzing various investment instruments. I am more inclined to trade secular trends, but the life of a investor is incomplete without trading those tactical and strategic trades: so you will find plenty of those on here.

I certainly have a set of intellectual convictions. I am a libertarian and I believe in free markets. I am intellectually obsessed with money. There's nothing quite as interesting as it. It's one half of every transaction and perhaps the most important element to modern human history. Of course, I'd like to see a more sound currency. I'd like to see greater freedom. I'd like to see good businesses thrive and bad banks fail. But, let's not get carried away with the political side of what interests me.

As a trader, I'm often long markets which I believe are structurally flawed. There is no contradiction there. Trading isn't a lesson in philosophy, it's a life-long course in analyzing risk. You never want to be on the side of a ship with too many people on it. In certain circumstances, you have to learn to be a contrarian. On other occasions, the trend is your friend.

The best way to think about trading is to divide trades into three broad categories. Secular trades, which you want to be involved in over many years. These must be backed by a big idea. A thesis. A sound rationale and inescapably sound logic. Secular trades will usually make you the most money. The life of a trader isn't one that revolves around big secular calls, however. It revolves around the second type of trade. Strategic trades. These essentially involve making a limited call on the future. A strategic trade may be to short an automobile manufacturer under conditions of rising interest rates and commodity costs. It may be to go long exporters under conditions of a weakening domestic currency. It may be to be short the market due to expectations of a negative industrial output reading. Strategic calls are challenging - but, if they're well executed, they can be deeply rewarding. Finally, as a trader, you tend to spend a lot of time figuring out tactical trades. These aren't the most intellectual exercises on the planet. These calls focus on execution. They're all about getting involved in a terribly oversold stock, and getting out at the first sign of resistance.

The above is what I consider most relevant about my approach and background. I currently focus primarily on Investment opportunities in India, Canada and USA but my methods of analysis and views are primarily global. The blog will feature plenty of thoughts on global indices, commodities and such - but, stock specific stuff will usually be restricted to India, US of A and Canada.

One of the main reason's I am now documenting my trades is because over the last few years, I was deeply pessimistic about the economy at the top and I grew quite bullish in March '09. In between all that, I have picked out key variables that defined relative out-performance. I do believe my approach to markets is founded in a deeply agnostic, dispassionate approach which might aid some of you in your understanding of markets. I'm not a classic technical trader - but i use a lot of technical analysis in the way I trade markets. At some stage, this blog may be the starting point of bigger things.

Until I decide otherwise, consider this a free to view, free to use blog on the global economy. Feel free to comment on any posts - lively debate is always enjoyable. I will also be posting details on trades I enter, before I enter them, with my target price, stop-loss level and I'll sometimes take you through a trade where I change those levels around based on various indicators. I'm a passionate trader, a genuinely inspired economist and a generally curious human being who loves markets. I look forward to sharing thoughts on a range of issues with you.

Cheers

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