Is one of your passions looking at economic data? Do you stay up late at night looking at GDP reports? Does the thought of what’s driving the economy keep you up at night?
If you said yes to any or all of these questions, then kudos to you! For most people, like myself, I find this information completely mind-numbing and hard to understand. Even though I have taken economics classes in college, some information is just hard to retain because it is so dry. What you have to realize when you are trading is that the economy DRIVES the stock market. Economic data will come out that will affect the markets directly. I’ve always been proactive in learning more about how the economy functions because a better understanding will allow me to find money-making opportunities.
I have always been a visual learner so I wanted to share this video with you by Ray Dalio. Ray is chairman to one of the world’s largest hedge funds and this 30 min video breaks down the economy to its most basic level. 30 minutes may seem like a long time for some of you but I PROMISE you it is a fantastic investment of your time. You will understand how the economy functions on a deeper level and it will greatly improve your trading. If you don’t fully absorb everything the first time, that’s ok! Watch the video periodically so you can take things in small increments.