The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- Global market traders are a new generation of traders who may have limited trading time, but a good understanding of inter-connected markets in the time frame they plan to trade. They also are comfortable trading a range of asset classes and are willing to change tack at short notice in reaction to changing global market dynamics.
The most common thread that GMT's have is their focus on international markets, and those market correlations with forex and futures trade. They understand that forex follows as other assets classes lead, and they use 24-hour forex trade and leverage in reaction to cross-border trading patterns in different asset classes.
As a global trader, or as a trader/investor in general, the truly successful traits can be seen in those who work to make their work a lifestyle. There is always a desire to have more free time, and therefore, Next Gens desire to create a global trading lifestyle, away from the trade station, to leverage that free time.
The lifestyle goal is to make money in smaller increments of time, which is in-line with global market trading patterns that have moved away from buy-and-hold, toward a mantra of buy-it-and-sell-it-if-it-moves. The more money made with the least amount of effort, the more desirable the ideal GMT lifestyle seems to become.
Four and one-hour charts are being used more often in setting trend and momentum reads, which allows the new generation of global traders and investors the chance to be in positions before each regional cash market opens. This pattern can be seen in the fact that as much price action happens in the futures market trade as it does in the live cash session for each region, which is a pattern that will only get stronger.
Money making money off limited time is how GMT's live in the new globally traded market arena. There is no point opening up a whole new inter-connected world that breaks the 9-5 stock market monotony, if all that does is to force 24 hours of chart-watching. However, having the ability to trade leveraged forex and futures positions at any time of day or night is what sets the new-generation traders apart, and using limited periods of time allows them trading-career longevity.
A near-term trader's responsibility is to identify opportunities, plan a trade route that has a contingency plan, and to look for third-party confirmation whenever possible; maybe from a trading buddy or subscription service. This work now incorporates the ability to analyze charts and headlines at any time within each 24-hour period. Forex and futures market trade is making the global market potential a reality for the masses.
Global market traders have a plan, a structure, and the discipline to wait, with a belief in what they do. If it goes wrong, as even the best laid plans sometimes do, they look back and confirm that they planned it, executed the plan, and would take it again in the same circumstances.
GMT's will cast their eye on Japanese equities to see how the dollar is reacting, or to London 11:00 GMT Libor rates impacting Chicago futures markets, or to NYMEX oil trade impacting the order flows in commodity-based currencies. In the global world, it is far easier now to leverage time than ever before; and TheLFB has the solid support of a 24-hour organization doing the heavy lifting and research.
Whether because of time restraints, economic forces, a need to diversify, or to better understand the new-generation trading arena, the new breed of Global Market Traders are thorough, looking for solid trading support from resources that are reliable and timely, and are prepared to trade at the drop of a hat. All of this is happening without the time restraints that made up Grandpa's market, in an effort to make more money on the back of leveraged time.
Marco Hague is one of the founders and principals of The London Forex Broadsheet (commonly known as TheLFB), a global forex trader portal with headquarters in the U.S. Hague began his career with the Bank of England dealing with foreign exchange control, and he has been trading for the last three decades. He has been involved with institutional risk asset ratio analysis and the implementation and maintenance of institutional trade desks globally.