Why cross-asset analysis is important

Every few weeks or so I come across a trader or investor who is sitting in front of a screen, unable to move because he or she is so intensely watching the ticks of a stock, currency, or commodity. The consequences of this type of day-trading approach are far-reaching, from micromanaging a trade/investment to physical and mental stress. Luckily, as I discussed in my piece “Swing then you’re winning,  there is a better way.

Another issue that causes frustration and losses on the part of investors is the sole focus on the very stock, currency or commodity at hand. The reason why so many traders and investors either initially or over time unwillingly fall into the traps of using a “single factor model” often has to do with a lack of understanding of the intra and inter-asset correlations.

Read my entire view here: https://www.tradingfloor.com/posts/why-cross-asset-analysis-is-important-1838308


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