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CPI & Inflation Rate USHello everyone! Let's take a look on what happened yesterday on the US financial market and understand the impact of CPI and inflation rate. The Consumer Price Index (CPI) and inflation news from the United States can have a significant impact on financial markets and the value of the U.S. dollar. The CPI measures the change in the price of a basket of goods and services consumed by households, and inflation is the rate at which the general level of prices for goods and services is rising. When the CPI and inflation numbers are higher than expected , it can indicate that the economy is growing, which can boost stock prices, lead to higher interest rates, and appreciate the dollar. This is because as the economy grows, companies will see increased demand for their products and services, which can lead to higher profits and stock prices. Higher interest rates can also attract more investors to bonds, which can lead to higher bond prices. Additionally, a strong economy can lead to increased demand for U.S. goods and services, and increased foreign investment in the U.S. economy. As a result, the demand for dollars increases, which can lead to an increase in the value of the dollar. On the other hand, if the CPI and inflation numbers are lower than expected , it can indicate that the economy is slowing down , which can lead to lower stock prices, lower interest rates and depreciation of the dollar. This is because as the economy slows down, companies will see decreased demand for their products and services, which can lead to lower profits and stock prices. Lower interest rates can also lead to less investors in bonds, which can lead to lower bond prices. Additionally, a weak economy can lead to decreased demand for U.S. goods and services, and decreased foreign investment in the U.S. economy. As a result, the demand for dollars decreases, which can lead to a decrease in the value of the dollar. It's important to note that the Federal Reserve uses inflation as an indicator to change the monetary policy, as they use interest rates as a tool to control inflation. Typically if inflation is too high, the Fed will increase interest rates to slow down the economy and curb inflation, and if inflation is too low, the Fed will decrease interest rates to stimulate the economy. These monetary policy decisions can also have an impact on the value of the dollar, as when the Fed raises interest rates, it can make the U.S. a more attractive place to invest, which can lead to an appreciation of the dollar. Conversely, when the Fed lowers interest rates, it can make the U.S. a less attractive place to invest, which can lead to a depreciation of the dollar.
ECONOMICS:USCPIEducation
by m_maia14
✅ How to become a successful Gold trader.In the past, gold was the most sought-after precious metal due to its cultural and financial value. Gold was an integral part of the modern world currency valuation system during the twentieth century, as it was pegged to the US dollar’s value up to 1970. Investor appetite for gold has always been high, given that the commodity has always been regarded as a safe-haven asset whose value rises whenever there is uncertainty in the global financial markets. The term safe haven has always been used to refer to gold because the precious metal has proven that it can maintain its value in times of crisis. On the other hand, fiat currencies issued by governments usually lose value in volatile times as governments print more money to fund emergency expenditures. Gold has been used for a long time by wealthy individuals to store their wealth and as a critical medium of exchange, especially before the advent of fiat currencies. Although gold is regarded as being safe, some factors affect its trading price, including: Central banks: Gold’s price is closely attached to central banks’ interest rates as part of their monetary policy decisions. High-interest rates usually lead to low gold prices as investors prefer to buy interest-bearing assets instead of gold, which has no intrinsic yields. Jewellery industry and demand: The jewellery industry is still a big driver behind the rising demand for gold globally. Up to 80% of the newly mined gold is used to manufacture jewellery. Hence, the jewellery industry contributes significantly to rising or falling gold prices. Rising demand usually results in rising prices and vice versa. Dollar: The price of gold is inversely related to the US dollar’s price, with rising dollar prices resulting in lower gold prices and vice versa. The dollar is primarily regarded as a safe-haven alternative to gold; hence, if investors are buying gold, they usually sell the dollar. Economic and political crises: Gold is used as a hedge during periods of financial stress and political crises as a safe investment. The precious metal has proven over centuries that it can maintain its value during crises, hence, its designation as a safe-haven asset. Inflation: Investors have always used gold as a hedge against inflation, which usually erodes fiat currencies’ value. Demand for gold usually rises as investors shift their wealth to gold to protect it from devaluation. There are many ways to trade or invest in gold, including both traditional and modern methods. Here are some of the popular ways to invest in yellow metal: Gold bullion: This is one of the traditional ways to invest in gold. Investors buy and hold physical gold as an investment. However, it is not easy to sell gold bullion; hence, you might have to hold it for a long time and might have challenges selling the gold. Gold futures contracts: A futures contract is an agreement between the investor and the seller mediated by an intermediary where the seller promises to sell gold at a specific price to the investor at an agreed future date. Mutual funds: Mutual funds provide an easy and flexible way to trade gold within the global markets. Investors can quickly sell their gold investments if they need to access their funds instead of buying physical gold. Contracts for difference (CFDs): CFDs allow traders to trade gold without owning the yellow metal via virtual contracts. Traders can profit from both increases and declines in the price of gold using CFDs. To increase your chances of success as a gold trader or investor, you must follow the necessary steps to become a successful trader, including: Following the correct gold trading strategies. Having a clear trading plan with both long-term and short-term targets. Always be informed of the significant political and economic news and other fundamental factors that could affect gold’s price. Continuously monitor the US dollar’s current price given its close relationship with gold. In the example above, we can see a simple but effective trading strategy. This strategy can be used on any financial instrument... Trend Following/swing trading. 1) Follow the main trend. To follow the main trend or identify it, a moving average or an indicator that shows you the direction of the main trend can be useful. 2) Once you have identified the major trend, it is wise to take a position in retracements, also called pullbacks. These are phases of the market in which the price takes a breather before continuing in the main direction. 3) Price indicators are an excellent tool to have multiple confirmations of entries. We can see in the chart the use of Fibonacci retracements and stochastics. 4) Always calculate the correct amount of Lots/contracts to use. 5) Be disciplined, will only enter trades where your strategy has worked in the past. 6) be constant, remember that trading is a job.
SAXO:XAUUSDEducation
by FOREXN1
17
Valuation is truth: stocks vs gold and stocks + goldWe live in a dollar matrix, a world we can feel but have trouble understanding. We have learned that things go up over time, but we don't know why. Why do things go up and sometimes also go down. Valuation is a lie detector. We should seek truth. Stocks dont always go straight up. Gold is just scare shiny rock. Dollars are debt instruments and promises for money. GLD PSLV GOLD CBOE:SPX SP:SPX TVC:SPX FRED:CPIAUCSL FRED:M2SL FRED:PCE FRED:GDP
SP:SPXEducation
by ValuePig
16
GoldViewFX - BULL & BEAR FLAG PATTERNSREPOST ON CHART PATTERNS. Hey Everyone, As promised, this year we will also share basic educational posts for our newbies to learn and level up. BULL & BEAR FLAG PATTERNS BULL FLAG This pattern occurs in an uptrend to confirm further movement up. The continuation of the movement up can be measured by the size of the pole. BEAR FLAG This pattern occurs in a downtrend to confirm further movement down. The continuation of the movement down can be measured by the size of the pole. Please don't forget to like, comment and follow to support us, GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
15
Invest in yourself, Knowledge is power!Money & time spent on knowledge is well spent. Read useful books with information not twilight or Star wars. Read comments on youtube or other media platforms. Why? most of that is degenerate non sense. Yes, you would be correct. You can gauge sentiment and the herds psychology. The herd is always wrong. Hang around or work with positive people that are like minded and share similar goals. One bad apple can ruin a group of 5-6 people but one good apple can not bring 5-6 group of people up, they will most likely drag him or her down. If you think negative you will be negative. Speak positive thoughts, have a say affirmations daily. The bible says God spoke everything into existence. Speech is more powerful than you think, be careful how you use it. Realize, that you are at war from the moment you are born. This war isn't with swords and bullets. It's a multi facet and a high percentage of people never realize it. Information is the main weapon being used against you, and it's molding you into the person you are. What you know what you think what you eat what you believe The war on your mind is the greatest of all battles. Making people into sick, helpless, degenerates is what the system wants you to be. Why is that? Because people don't want strong competition if any. People like to maintain power uncontested. The pen is mightier than the sword in a our modern civil society. Information is weaponized in this war Money/debt is weaponized Nutrition is weaponized psychology is weaponized What is psychology? What is your psyche? I'm willing to bet you think it's the mind. It is not your mind or the study of it. Psyche is the Greek word for soul, so , psychology is the study of the soul. so, spiritual warfare is also being forced upon u. My people are destroyed for lack of knowledge. Hosea 4:6 What critical knowledge do we lack today? well, the answer to that is very broad but let's start with monetary/financial since this is how the whole system runs. Printing FIAT currency aka money but it's not money is actually debt. So our system is a debt based system. Is it a new idea? NO. The rich rule over the poor, and the borrower is a slave to the lender. Proverbs 22:7 Have you ever heard? "there is nothing new under the sun" how about? "The more things change, the more they stay the same" and "History doesn't repeat but it often rhymes" Well, proverbs just spite you out a giant receipt. It's nothing new, In fact it's more sophisticated now, but so are we. We have access to the same tools as them, it's just a matter of interest (pun intended LOL) and learning how to wield them. so... Invest in your self. Knowledge is power. Invest in assets that don't carry counterparty risk. Keep your wealth out of counter party risk. Bitcoin although decentralized, on exchanges has counterparty risk. Gold although decentralized, in a bank vault has counterparty risk. Hold your wealth, don't let others hold it for you. Take this year and make some small strides in learning. Set small goals, very achievable. First just browse books online. Find a book that might interest you. Then read reviews on it. Then go to the store and purchase it. (wait for sale preferably) Then just read the table of context Then just read one page a week, then read more and so on and so on. Before you know it, you will be intrenched into it. You will be hooked on learning. You have a friend that always call you to complain? Cut them out cold turkey. You must understand your mindset is so strong that it can even heal you or prevent you from getting sick, but it requires strong belief. Cut out bad habits and start inserting good habits in small steps that you can achieve. Don't make the steps too big that you fail and get down on your self. So, what books should I read? that's a good question. Where is the battle being fought? We already went over that. You must also keep in mind that all books and all information is not equal. So that now poses another problem, learning to filter junk and what doesn't work. Hint, if it claims over night success, then it's probably bullshit. So... learn as much as you can but start slow, don't overwhelm your self and give your mind and body time to absorb and understand what it has consumed. Also it's not just books, there are plenty of free media creators putting out amazing free information, support them. Don't forget about right here on Tradingview there is a lot of great financial information being put out daily. Support them too. One is SPY_MASTER, he has literally been blowing up the analysis of late with some great content, give him a follow and some likes, you won't regret it. below is a link to an educational idea he put out recently. Supporting your neighbor or brethren is the only vote you get in life. Elections are joke and can easily be rigged. You want your vote to mean something support local, buy from local or small business. That is your vote and it has more pull and energy in it. It has your sweat, energy, time, blood, ingenuity in it, it's your money. They will return it back to you, Walmart won't. Ohh how about the Gold chart up top. It's a simple chart that shows double tops cup and handles and bearish divergence on the RSI. That says a gold drop is in order before the next major move up unless it maintains the upward trend in the RSI. Then the bearish divergence will be voided. Keep in mind this cold take a couple years to play out. Thank you WeAreSatoshi Have a blessed and prosperous year!
TVC:GOLDEducation
by WeAreSat0shi
14
GoldViewFX - HEAD AND SHOULDERS PATTERNREPOST ON CHART PATTERNS. Hey Everyone, In 2023 we plan to also make more time to post basic educational posts for our newbies learn and level up. HEAD AND SHOULDERS PATTERN The head and shoulders pattern is a formation of 3 peaks with the head being the highest peak (Lowest on inverse). The entry should be below the neckline (Above on inverse). The measure of take profit can be taken by measuring the peak of the head from neckline and using this range, as an indicator of the take profit level. Please do give us a like, comment and follow to support us. GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
6
BASIC MONEY MANAGEMENT - LOT SIZE VS REVERSAL AND ACCOUNT SIZEHey Everyone, We see too many new traders trade with random lot sizes with no understanding on the impact it has on account sizes, which result in not only losses but BLOWN accounts. This post is by no means a risk or money management strategy but more so just basics on the movement of reversals and how the lot sizes impact the value of your account during this reversal. Trading with the right lot sizes allows a trader to manage their account/money when the trade goes against them. The right size allows a trader to move a range without blowing their account and without seeing their account reverse to the point of no equity. This type of trading gives traders anxiety and in return this anxiety impacts trading psychology . This then has a ripple effect and impacts your trading decisions and analysis. The example we show on the chart is an entry of SELL that reverses by 380 PIPs. This movement happened in literally 2 candles (1hour candles) , so in two hours the price from entry reversed by 380 pips. This example then shows what this equates to in monetary value dependent on lot sizes. The example shows that anyone with a £500 account trading this movement with a lot size of 0.20 would have blown their account. Lot size usage should be based on the size of your account for example; £500 size account - we will only use 0.01 size lot sizes with maximum deployed total no more than 0.02. This will allow an account to survive volatile movements. £1000 size account - we will use 0.02 lot sizes with maximum deployed total no more then 0.05 any given time. £2000 size account - we will use 0.03 lot sizes with maximum deployed total no more then 0.10 any given time. £5000 size account - we will use 0.5 sizes with maximum deployed total no more then 0.20 any given time. Basically staying below 0.05 for every £1000, as the total deployed usage allows us enough flexibility of movement on the chart for Gold and then using stop losses on top of this, gives us further control of our money management. Many traders who cannot control their greed and do not bother understanding risk/money management will bung on a 0.50 lot size on a 2K GBP account, as an example, and then when it reverses, even if it's within the swing range, you know what will happen next. ACCOUNT BLOWN! MIND BLOWN! You will have mastered the art of risk/money management when your entry reverses and you a) expected that reversal within the range before it resumes to hit the TP and b) you look at that red figure during reversal without it worrying you in the least. We hope this quick basic insight helps some of our newbies better understand how to manage their risk with range. Please like, comment and follow to support our work, we really appreciate it! GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
27
AUBONACCI GOLD TRADING SOFTWAREHello. In this video, I talk about what I use for Gold trading and also I talk about some of my discoveries including Market Mapping, Future Fibonacci and Gold Phases. For this purpose, I have created software that calculates Pivot ( starting point ) because it is important to know where you start the counting from. Hope this explains briefly what I am doing over here. Remember these are just tools and analysis, trading is the hard part that has to be mastered on its own and no software will help you there! P.S don't ask for the software or anything regarding the info seen here. I don't teach people, I don't sell anything nor give anything out. So relax. Cheers.
FXOPEN:XAUUSDEducation
by user34445100094
3
GoldViewFX - How to draw support and resistance levelsHey Everyone, This is a repost for our newbies. As promised alongside our analysis and reports we will also be posting basic educational posts to help newbies. Today we show you how to draw support and resistance levels the GoldViewFX way. There are so many ways to draw and establish support and resistance levels. Typically this is an area where price stabilizes and fails to break providing support or resistance to price. Visually this can be represented by drawing a line to identify those areas. This can be drawn and identified in different ways. The 3 ways we draw support and resistance levels are as follows; Firstly we identify where price is stabilized, this is likely to show a collection of candles side by side or by a candle or wick touch to a price and then a big retracement. 1 - We draw a line on the top or bottom of the candle body close of an area that price fails to break. Typically the highest or lowest wick from the collection of candles. 2 - We draw a line on the top or bottom of the candle body close of an area price fails to break. Typically the highest candle from the collection of candles. 3 - We identify the turning point of our moving average line (EMA5 IN OUR CASE). We then draw a line on the top or bottom of this turn (This is unique to us, so don't forget if you see it anywhere else). Please don't forget to like, comment and follow to support us, we really appreciate it! GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
18
BUYING DIPS/SELLING TOPS - KEEPING A CLEAN PSYCHOLOGICAL PROFILEHey Everyone, Here at GVFX, we are currently buying dips. What that means is that we buy on the dips and therefore only concentrate on long positions/buys with the odd sells for fun. As mentioned before, having both sell and buy positions open in your account will affect your psychology and in turn, your trading decisions. Now a question that typically arises here is why would it still be advisable to buy when the market is pushing down? Firstly, let me assure you that the same algorithms, experience and strategies that we use to achieve a 97% hit rate with our bullish directional bias also gives us the heads up, or down if you will, on when the market is going down. Don't think for a moment that we only know how to analyse a bull market or up trends. We share targets/signals for both buys and sells but choose not to hedge out of choice. Our published results remain consistently profitable month in month out!! In my experience, in the current market conditions, it is much safer to get out of a stuck buy position than a stuck sell position. That's not to mention the clean PSYCHOLOGICAL PROFILE that is achieved when trading in just one direction. And although hedging can in theory work, it requires years of experience and in the end, is simply not worth the effort. I am more than capable of hedging effectively but the fact that I do not should tell you something. Let us look at an example to further answer the question highlighted above. When you have short-term bearish momentum down, we take buys from key supports or MAs which act as dips. Remember that the market does not go up or down in a straight line (with the rare exception of short-lived parabolic moves). So, when the market is going down and hits one of our key levels, a buy from that point will go back up for 20 to 30 or 30 to 40 pips (this number of pips has been calibrated based on back testing) before resuming back down. You can think of it like this. The market moves in a zigzag manner. The zig is that part of the leg which is going down to create lower lows (if the downward trend is continuing). The zag is that part of the leg which takes a breather and pushes back up with momentum for our entry and quick pip-take range to create a lower high (if the downward trend is continuing) before heading back down again. We catch the right and safest waves (buys) in and out and surf to success. When price hits a key structural support or stops creating lower lows and lower highs, we then reassess for entries with a wider range of pip capture. Hope this post helps our followers to understand how we keep our psychology strong!! GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
26
The Best Time to Buy an AssetThe passing of time often creates one of two things. It can create Wealth or it can create Regret. For instance… Many people will say, I wish I bought real estate, crypto, stocks, etc. at certain times…then I’d be rich. We are all pretty good at looking backward and saying, “What if?”. With Investing, the two most common reasons people miss opportunities are because they aren’t paying attention or aren’t prepared…and usually, it’s both. The best thing to do is: 📌 Get Educated with proper knowledge 📌 Analyze different factors and Research on them 📌 Create a plan/strategy and start working on it
Education
by FortuneAI
GoldViewFX - TRADING ETHOS & STRESS FREE TRADING Here at GVFX, we constantly remind our followers to take profit off the table by banking in stages or protecting profit with a trailing stop after each incremental profit level has been reached as it heads toward the target TP. Far too many retail traders hold positions until it's too late and then the market turns against them and they end up breaking even or even making a loss in the hope that it will go back in the right direction and hit their ultimate, full-on dream TP. Making money, or to use a specific example, getting into profit through a click on MT4/5 is an initial action. If that entry turns out to be profitable, it was either through blind luck or skilful analysis. Keeping that money, or profit on an open position in our example, requires learnt behaviour. Thus, you would either bank after a certain level of profit or trail your stop up/down depending on whether you're long or short using a habit that's now second nature to you. Growing money, or increasing your equity balance for our example, requires knowledge and discipline. Growing your account size means not going in heavier with an increased lot size in relative terms to your account size simply because you've had a good run prior. It also means sticking to the same successful strategy that has made you profitable up to that point. Stay disciplined. Also, level up with your skills by gaining more knowledge regarding additional strategies (THAT FIT INTO YOUR EXISTING SYSTEM) and fine tune existing strategies to increase ROI. As an example of the latter, think about how you trail your entries. Advanced techniques on how to use trailing stops can significantly increase your profit on each entry. Trading is a strategic business activity. It requires action, good habits and the thirst for knowledge. Trade safe and trade profitably. GVFX - Stress Free Trading Strategy If you find trading stressful, then one of two things is happening. Firstly, your trading strategy and risk management is not effective and the excessive drawdown (reversal) on each entry and/or the large number of entries you are having to chop is causing undue stress. Secondly, you may have a strategy and risk management style that works but you simply don't have the kind of personality/temperament that can tolerate any amount of stress. In the latter case, perhaps trading is not for you. For those followers who occasionally want to take it easier for a bit of a break or for those who need to build up their resilience before being able to trade more aggressively, I suggest the following: 1) Risk no more than 1% even though we risk between 1 to 3 per cent. 2) Enter on a significant reversal to a key level. Do not enter on open even if it is a small lot as seeing this go into the red will cause you stress if you cannot handle it. 3) If you enter on a significant reversal, you can move the SL further back by the difference between where you opened your entry and the entry price on the trade setup. In that case, it will be unlikely that you will get anywhere near your SL so even if it reverses, you can relax. Have a great weekend all GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
27
6 Reasons why the gold price will drop with interest rate hikes The FOMC announced another 50bps (0.50%) Interest Rate increase to 4.50% which has lead to short term downside for gold as an initial reaction. The question for many remains. Why does gold drop when interest rates rise? There are a number of reasons, but here are the top 5… #1: Investors look elsewhere Higher interest rates can make other investments, such as fixed investment assets and bonds, more attractive to investors. Gold investors will then sell their gold holdings and take advantage of higher interest rate yielding assets. This can lead to investors moving their money out of gold, which can lead to a drop in price. #2: Stronger U.S Dollar A higher U.S dollar can lead to gold being more expensive for investors who use other currencies to buy it. This can lead to a drop in demand for gold, which brings the price lower. #3: Higher borrowing costs When interest rates rise, this increases the costs of borrowing for business and consumers. They now need to pay more to borrow money to fund their operations. This can hamper the economic activity and drop the demand for buying stocks, precious metals and other investments. #4: Higher yields on gold-mining companies bonds Fixed investment gold bonds may seem more attractive than holding and investing in gold itself. This leads to a drop in gold mining stocks which essentially helps with the drop in gold. #5: More supply less demand With the factors I mentioned above, with investors leaving gold this increases the supply of the metal and decreases the demand. This leads to a drop in the gold price. #6: Uncertainty floods the markets When interest rates go up, this leads to uncertainty in financial markets (where gold is no exception). Investors feel the uncertainty and become worried for the economy. This can lead to a decrease in demand for gold and a drop in its price. These are all speculations in theory with why the gold price may drop with an increase in interest rates. We notice that the markets don’t always play according… Since the May 2022 Gold has moved in a sideways consolidation pattern. And this means, we can see the price continue in the range. Until we actually see a break up or down, the analysis in the medium term is sideways. We’ll be watching this carefully. Follow for more trading and fundamentals tips and analyses from the info I've learnt over the last 20 years as a trader. Trade well, live free. Timon MATI Trader Higher interest rates can also lead to higher yields on gold-mining companies' bonds, which can make these bonds more attractive to investors. This can lead to a decrease in demand for gold-mining stocks and a drop in the price of gold. Higher interest rates can also increase the opportunity cost of holding gold, as the metal does not generate any income or interest. This can make investors less likely to hold onto gold as a long-term investment. Gold is often seen as a hedge against inflation, and higher interest rates can signal that the central bank is trying to keep inflation in check. This can reduce the perceived need for gold as a hedge and lead to a drop in its price.
COMEX:GC1!Education
by Timonrosso
1
How To Prepare For Rising PricesA blog article discussing how inflation is impacting family budgets, what it means for household budgets in the US, and some basic strategies people can use to help manage by RobinhoodFX Robinhoodfx. Intro In recent months, we've seen inflationary pressures building in the U.S. economy. Prices for key commodities like crude oil and agricultural products are rising, and wages are starting to creep up as well. All of this points to one thing: higher prices for consumers in the months ahead. How can you prepare for rising prices? Here are a few tips: Know where your money is going. Track your spending for a month or two so you have a good understanding of where your money goes each month. This will help you identify areas where you can cut back if necessary. Make a budget and stick to it. Once you know where your money is going, it's time to create a budget that ensures you're spending wisely. Be realistic in your assumptions about inflation and make sure your budget can withstand a bit of financial volatility. Invest in yourself. Inflation erodes the value of assets like cash and bonds, so it's important to invest in assets that hold their value or even increase in value over time. One great way to do this is to invest in yourself through education or job training that will make you more valuable in the workforce. Stay disciplined with your spending. When prices start rising, it's tempting to spend more freely since "everything is going up." But if you want to stay ahead of inflation, it's important to keep your spending under control and focus on essential purchases only What is Inflation? Inflation is the rate of increase in the price of goods and services over time. It is measured as the percentage change in the consumer price index (CPI) or producer price index (PPI). Inflation can be caused by a variety of factors, including excess money supply, government spending, and global factors such as commodity prices. Excess money supply is when there is more money in circulation than there are goods and services to purchase. This can happen when the Federal Reserve prints more money or banks lend out more money than they have on deposit. Government spending can also cause inflation if it exceeds tax revenue. When the government spends more than it takes in through taxes, it has to print more money to cover the deficit. This increases the money supply and can lead to inflation. Global factors such as commodity prices can also affect inflation. For example, if the price of oil rises, this will likely lead to higher prices for gas and other products that use oil as an input. How Do Inflation Rates Affect Prices? Inflation rates can have a significant effect on prices, particularly over the long term. When inflation is high, prices tend to rise, and when inflation is low, prices tend to fall. In general, higher inflation rates mean that consumers will pay more for goods and services, while lower inflation rates mean that they will pay less. How Does Inflation Affect Prices? Inflation is the rate at which the prices of goods and services in an economy increase over time. The main drivers of inflation are changes in the demand for goods and services, and changes in the supply of money. When there is more money chasing after fewer goods and services, prices go up. The opposite happens when there is less money chasing after more goods and services; prices go down. What Does This Mean for Consumers? For consumers, inflation can have both positive and negative effects. On the one hand, rising prices can erode the purchasing power of their incomes, making it difficult to afford basic necessities or maintain their standard of living. On the other hand, inflation can be beneficial if it leads to higher wages and salaries; as long as wages grow at a faster rate than prices, consumers will be better off. What Does This Mean for Investors? Investors need to be aware of how changes in inflation might affect their portfolios. For example, investments in Treasury bonds become less attractive when inflation is high because the fixed payments on these bonds lose value relative to other investments that offer higher Rising Costs: Why are They Happening Now? There are a number of factors that are causing prices to rise in the United States. The most significant factor is the increasing cost of labor. Wages have been rising steadily for the past few years, and this is putting pressure on businesses to raise prices in order to cover their increased costs. Other factors that are contributing to rising prices include the increasing cost of raw materials, such as oil and gas, as well as transportation costs. These costs are being passed on to consumers in the form of higher prices for goods and services. inflation is also playing a role in driving up prices. The Federal Reserve has been keeping interest rates low in an effort to stimulate economic growth, but this has led to higher inflationary pressures. As prices start to increase, Americans will have less purchasing power and will be forced to cut back on spending. The rising costs of health care are also putting upward pressure on prices. The Affordable Care Act has led to increased demand for health care services, which has driven up prices. In addition, the aging population is requiring more medical care, which is also contributing to higher costs. All of these factors are leading to rising prices across the economy. American consumers will need to brace themselves for higher prices for goods and services in the months and years ahead. How Everyday Consumers Can Best Prepare for the Potential Impact There are a few things that everyday consumers can do to best prepare for the potential impact of rising prices in the U.S. First, it’s important to be aware of what’s happening in the economy and how it might affect your finances. Second, make sure you have an emergency fund in place in case prices go up unexpectedly or you lose your job. Third, consider ways to cut costs so you can save money. Finally, invest in yourself and your career so you’re prepared for any changes that might come. The Ramifications of Higher Unemployment and Lower Employment Rates Unemployment and lower employment rates have a number of ramifications. Perhaps the most obvious is that fewer people are employed and earning an income. This can lead to less spending, which can in turn lead to less economic activity and slower growth. Additionally, when people are unemployed or underemployed, they may have difficulty meeting their basic needs, which can lead to increased stress and anxiety levels. This can also result in social problems such as crime. Additionally, unemployment can have a ripple effect on businesses, as they may have to lay off workers or cut back on hours/wages. Lastly, high unemployment rates can lead to political instability. Solutions to Fighting Inflation Inflation is a major concern for Americans and it is on the rise. Luckily, there are steps that you can take to prepare for rising prices and protect your finances. One of the best ways to fight inflation is to invest in assets that will hold their value or appreciate over time. This includes investing in stocks, real estate, and precious metals. These investments will increase in value as the cost of living goes up, giving you a buffer against inflation. Another solution to fighting inflation is to create a budget and stick to it. This will help you keep track of your spending and make sure that you are not overspending on items that are likely to increase in price. Additionally, saving money each month will give you a cushion to fall back on if prices do start to rise rapidly. There are many other solutions to fighting inflation, but these are two of the most effective. If you are concerned about rising prices, take action now and start preparing for the future. Conclusion If you're worried about rising prices in the United States, there are a few things you can do to prepare. First, start by evaluating your spending and see where you can cut back. Then, make sure you have an emergency fund in place so that unexpected expenses don't throw off your budget. Finally, keep an eye on inflation rates and invest in assets that will hold their value over time. By following these steps, you can protect yourself from rising prices and maintain your financial stability.
FOREXCOM:XAGUSDEducation
by RobinhoodFX
GOLD | Elliot Wave | A Text Book Example?GOLD | Elliot Wave | A Text Book Example? It is extremely rare that in reality, we find patterns in textbook examples. Gold is currently presenting such an opportunity which I will explain in detail. According to Elliot's Wave theory, an impulsive wave is created by 5 waves. 3 of these waves are impulsive (1,3 and 5) 2 waves are corrective (2 and 4) According to the books, each impulsive wave is composed of 5 waves of the lower degree that can be seen in the lower chart time frames. In our real-time example, the price has created the 3rd wave of a daily chart (in red). So it should be ready for the 4th wave correction. If we look at the 4-hour chart, we can see that the 3rd wave can be broken down into 5 other waves (in blue) And the 5th wave of the third wave (in blue) seems to be completed by 5 other waves (in black) Maybe this is the moment we can see an ABC correction before the price goes up again for the 5th wave (in red). The price correction zone is expected to be 1748 - 1730 in order for the price to rise again. Thank you and Good Luck! Daily Chart! 4-Hour chart:
FX:XAUUSDEducation
by KlejdiCuni
20
Endless Debate Among Investors & Traders: Which One is Better?Have you ever seen the debate on any social media platforms between traders and investors? On each side, Investors or Traders Claimed their techniques were far superior to the other because of the capability of earning more profit and a High Win Rate. Endless Debate Between Investors and Traders never stops to this day. They are blinded by their false sense of superiority. They failed to recognize the similarity between them. Both were waiting for the ideal price level before buying stocks to get a capital gain or dividend (Money) with a bit different approach. The Investors determine the ideal price level to buy the stock by analyzing the Intrinsic value of the company and then buying the company below its Intrinsic Value (buying a Cheap Company and Selling it at its fair price). On the other hand, Traders will analyze the historical price movement and look for repeating patterns that may indicate a potential upside movement before buying the stock at the determined price level. We have some similarities in method and purpose. If both sides could prove themselves profitable in the long run, why are we wasting our time to win the debate? It would be best if we use your time wisely to improve your strategy than debating on Social Media Platforms. Improving your strategy can make you more money! *Disclaimer On: The Article is for Educational Purposes Only.
Education
by financialfreedomgoals101
4
FOREX & COMMODITIES CORRELATIONHello everyone! Today we will discuss the correlation for some currencies and commodities. GOLD GROWTH Recently, gold has risen sharply. Not everyone knows why and what may happen next. But if you disassemble gold, then historically, it turned out that in difficult economic moments or in a crisis, dollars are exchanged for gold, since GOLD has historically been considered a rescue tool from inflation. As you know, inflation eats up the value of the dollar and gold is an excellent tool for saving money. According to the above, the DOLLAR and GOLD have an inverse correlation, that is, when the DOLLAR falls, GOLD rises and vice versa. In addition, gold can be an indicator of the future crisis and or acceleration of inflation. Maybe that's why GOLD is growing now? CANADIAN DOLLAR AND OIL Canada occupies one of the first places in the world in oil production. And, of course, oil plays an important role in the country's economy. As soon as oil prices rise, the CANADIAN DOLLAR becomes stronger. Conversely, the fall in the cost of oil has a bad effect on the currency. SWISS FRANC Switzerland is historically famous for its economy and its banks. Trillions of dollars are stored in Swiss bank accounts. We will not talk about how they get there, where and why, but the main thing is that everyone knows that many people keep money there. Switzerland is a time-tested country, people trust their country and consider it very reliable. Do not forget that 25% of Switzerland's reserves are secured by gold. The currency is very strongly linked to gold and therefore when gold falls, the currency falls too, and when gold grows, the currency grows. Everything is simple. There are many correlations of currencies with other assets in the world. There is also a correlation between currencies. An attentive trader will be able to identify a pattern and make money on it. Thanks! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
9
It’s trading wheaty (pretty) high now...Continuing the topic of spreads between related commodities, the Hard Red Winter Wheat – Soft Red Winter Wheat spread is another one trading at an extreme level now. A brief explanation on the different types of wheat we are referring to here: 1) The Hard Red Winter Wheat (HRW) is the most widely grown class of wheat. A high protein product, used for breads, some types of Asian noodles and general-purpose flour. 2) The Soft Red Winter Wheat (SRW) is the third largest class of wheat variety grown in the US, lower protein wheat used in producing confectionary products such as cookies, crackers, and other bread products. Generally, the HRW Wheat Futures (KE) trades at a premium to the SRW Wheat Futures (ZW) due to the higher protein content, however other factors such as production levels and supply demand dynamics may disrupt this spread, as seen from the wide range it has been trading since 1977. Currently, this spread is trading close to 132 cents, with only one instance where it has traded higher, which was in March 2011 when this spread reached an all-time high of 164. We attribute the spread trading at a high now due to the following 2 reasons: 1) The 2022 HRW production is currently the lowest on record since 1963, due to widespread droughts across many of the HRW production regions. 2) The average protein content of the 2022 yield is higher than last year, as well as the average of the past 5 years, resulting in a higher quality crop. As a result, HRW is trading at a premium as supply shortage and a higher quality product pushes the price higher, while SRW sees average production and quality. While it is challenging to assess the production levels and quality for the next season, from a risk reward perspective, we see an opportunity here. The past few spread peaks have been clearly marked out by Relative Strength Index (RSI) pointing oversold. With the 10-year average for the spread at 6.3 cents and the RSI now oversold, we lean bearish on the spread. Referencing the average of the past 3 declines at 150 cents and lasting 511 days, we could set out trade levels. If the historical pattern holds this time, a conservative target of 120 cents and a trade length of 500 days points us to the 15-cent level. We see the current set-up as an opportunistic one, with similar episodes in the past pointing lower. CME also has the synthetic KC HRW Wheat-Wheat Intercommodity Spread, which can be used to express the same view and is financially settled. The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. Sources: www.uswheat.org www.cmegroup.com www.cmegroup.com www.usda.gov
CBOT:KE1!Education
by inspirante
14
📖 5 Books On Trading That Everyone Should Know 📖📖 5 Books On Trading That Everyone Should Know 📖 📖 1. Reminiscences of a Stock Operator - Edwin Lefèvre. 📖 Reminiscences of a Stock Operator is a fabularized biography of the most famous speculator of all time Jesse Livermoore. Jesse Livermoore operated in the stock and commodity markets in the early 20th century in the 1920s to be exact. He was one of those speculators who made an astronomical fortune almost from scratch. He made and lost fortunes. His wins and losses as of today could be counted in the hundreds of millions of dollars. His speculative concepts and brilliant remarks on the markets, inspired and still inspire speculators around the world today. Despite the passage of 100 years since those events, the strategies and trading approach have not lost their value, I would even say they have gained. The book reads very well, it is written in accessible language, everyone will be able to understand it and take something for themselves. A must-have item on the shelf at every trader's home. 📖 2.The Disciplined Trader - Mark Douglas 📖 The Disciplined Trader. One of the first books that on such a scale spread interest in psychological elements in trading. Mark Douglas, after working with many traders in his career, noticed that mental elements are one of the main barriers to success in trading. He presents in his book the principles and mental attitudes that are necessary for success in this industry, it is worth mentioning that these attitudes are fundamentally different to what we have been taught to live in society. An ideal book for people who feel that the technical aspect has been mastered, but still feel that they have some internal blockages that block them from achieving systematic results in trading. 📖 3. Market Wizards - Jack D. Schwager 📖 Market Wizards. Book-talk. This is the first, and considered by many to be the most important, part of Jack Schwager's conversations with prominent traders. In it we can hear their stories and thoughts on trading of such people as: Jim Rogers, Paul Tudor Jones, Larry Hite, William O'Neil. In the book we can read a lot of conversations in which each trader brings something from himself and presents his specific view of the market. We will learn a lot about technical analysis, as well as fundamental analysis, risk management and many other aspects related to trading. Everyone can find something for themselves. It is not a book to be read from cover to cover. 📖 4. The Intelligent Investor - Benjamin Graham 📖 A book of investing legends. The most prominent investment advisor of the 20th century. Since its publication, the book has become, so to speak, a holy book of the stock market and the philosophy of "value investing" with which every investor must become familiar. Its philosophy and the principles it recommends to follow teach and inspire investors around the world to this day. It is worth mentioning that Warren Buffett was one of Graham's disciples and repeatedly mentions how great an influence he had on him. A must-have item for any aspiring long-term investor 📖 5. Technical Analysis of the Financial Markets - John J. Murphy 📖 Another holy book this time on technical analysis. This book is a comprehensive expedition presenting the vast majority of technical analysis concepts. John J. Murphy, thanks to his 30 years of experience working in financial institutions, takes the reader through all the topics that are key to understanding technical analysis. It is an excellent primer, which allows for an accessible and understandable introduction to the world of technical analysis. The book lays a solid foundation, thanks to which you will be able to expand your analytical skills. Everything we need to know about charts can be found in this book. It is no wonder that to this day it is a worldwide bestseller and the most popular book on the technical aspects of market analysis. 📖 Have you read any of the books mentioned? share your opinion in the comments. ✨If you liked the post leave a like and follow to stay up to date with upcoming materials.✨
Education
by InvestMate
26
Educational Series - Smart Money Concepts ( Liquidity )Hi there guys! I will be doing a short tutorial on Smart Money Concept's liquidity. What is it? - Liquidity acts as a driver to move the market in a specific price range. - We can find liquidity in areas where many people place stop losses and buy/sell stops. - Market makers will manipulate the price in order to break through these obvious zones and seize the liquidity. How to look for them - You will be looking for areas where price are of relative equal highs/lows. - Areas where price has not gone to swept the "stop losses" Why is it useful? - Helps to forecast where price might potentially head to - Potential areas for take profits upon clearing of liquidity - Avoid placing your stop loss at liquidity areas It takes some time to learn how to spot liquidity. If you do enjoy this tutorial, feel free to follow me and boost this post! :) Regards, Chen Yongjin
OANDA:XAUUSDEducation
by DogeStonks
4