RealMacro

EEM VWO Understanding Emerging Markets

RealMacro Updated   
AMEX:VWO   Vanguard FTSE Emerging Markets ETF
To understand emerging markets you must first understand what the dollar (DXY) is doing. In this chart, I show you the relationship
between the two. You can see several key dates where reversal took place. To get a handle on what drives the dollar (see post below)
You need a good understanding of how the monetary system works, macroeconomics, FOREX, and the Bond market.


Then you look at the charts and see what the message of the market is. Again I emphasize trading investing is not about GUESSING!
Vague Hunch and feelings! Trading investing is about assessing value, picking points of interest, and managing risk.

The chart clearly shows that when a point of reversal occurs, the trend usually lasts a while. Now I understand most want to trade
daily and make money daily etc... but markets do not work like that. There will only be a few times a year you will make money.
For the rest, you just have to survive and not get bored and blow your account out chasing. I have gone years with nothing meaningful
to show. Other years it's like shooting fish in a barrel. If you are serious about trading investing you must learn this sooner rather
than later with multiple accounts blown out.

I get subscribers whose hair is on fire wanting to make money now! But the market is dead! It will never happen. Others saw the success
early on and think that's how it always is. As any experienced trader investor will tell you that's not how it works. You need to see all
types of markets. Bull, Bear, Flat & choppy, and that takes years. They all trade differently and sometimes not at all. having someone
who has seen it all before and can mentor you without the fluff is very important!
Comment:
Seems obvious now. But no one believed me back then.

Real Macro Economic Investing
www.patreon.com/Realmacro
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