Understanding the World of Trading: An Interview with Nilam Patel

At the heart of global macro investing is a balancing act between conviction, flexibility and discipline. Nilam Patel, Partner and Portfolio Manager at MKP Capital Management in New York, has spent nearly two decades honing that skillset across demanding market environments. 

Today, we interviewed another expert in his respective field. He has been trading and in the midst of the action for 20+ years going through it all. Today’s article will be presented as a Q&A style to get his direct input on certain topics.

Q: You’ve built your career managing global macro and credit strategies. For students new to finance, how would you explain what “global macro investing” really means?

A: Global macro investing involves examining the world and its various events through a broad economic perspective. Its not only just concentrating on a single sector, but rather looking at the larger-scale elements like interest rates, inflation, currency fluctuations, and political developments that can impact multiple markets simultaneously. The goal is to figure out opportunities where market prices have not yet adjusted to these wider trends.

Q: A lot of people wonder how traders are so quick in their decision making, especially with such volatility of markets. Interest rates, wars, and economic shocks all can lead to split decisions being needed. How do you make decisions with so much uncertainty?

A: There are two main things you need, not only for this, but for everything: Discipline and preparation. You can’t predict everything, but you can be prepared. At MKP, we use many different tools such as data-driven models, risk management strategies, and diversification to control exposure. It is less about being correct at all times and more about safeguarding capital when mistakes occur. You always have to be flexible. And especially with how much capital is being flowed through our portfolios, the best course of action is to minimize risk and await clearer signal

Q: Many of our readers are students taking AP Economics or just getting into investing. What lessons from your experience would you share with them?

A: Firstly, make sure you prioritize grasping concepts over rote memorization. You need to be able to consider how things like supply and demand or monetary policy, relate to actual behaviors in the world. Secondly, make sure you establish a solid grounding in mathematics and data literacy. Empirical or numerical data is very fundamental in understanding various market dynamics. Lastly, be curious! Explore a wide range of subjects, including economics, history, and even psychology. Markets are influenced by human behavior as much as they are by statistical data.

Q: What trends are you watching most closely right now?

A: Two things: the long-term effects of higher global interest rates and the growing role of technology in financial systems. Everything from digital currencies to AI-driven trading are especially prominent in today’s technological environment. Both are reshaping how capital flows around the world, and young people entering finance today will be part of that transformation.

Q: Last question. Any advice for teens who dream of working at a place like MKP Capital one day?

A: Start small, stay consistent. Build your understanding of markets one concept at a time and learn to think critically about cause and effect. Internships, investing clubs, or even just tracking the news and forming your own hypotheses are great starts. Finance rewards those who combine curiosity with discipline.

There you have it! Direct insight from a very prominent trader. I hope this helped some of our readers!