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Choosing Your Inflation Tracker: Core CPI or CPICore CPI vs CPI - Some say core CPI is a better benchmark compare to CPI data to track inflation. Knowing which way CPI inflation is going, it will sharpen our investment decision? If CPI inflation is still trending up, majority of stocks will be under pressure. However, there will be other sectors will benefit from a rising inflation. In this tutorial, we will discuss what are these inflation sectors and how we can invest or trade in them? And core CPI vs CPI, which one, we should be spending our time tracking. 3 types of crude oil for trading: • Crude Oil Futures 0.01 per barrel = $10.00 Code: CL • E-mini Crude Oil Futures 0.025 per barrel = $12.50 Code QM • Micro WTI Crude Oil 0.01 per barrel = $1.00 Code MCL Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. 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
ECONOMICS:USCCPILong
by konhow
1
LIQUIDITY MATTERS! Global liquidity vs #BitcoinLook at how the bullish green arrows and bearish red arrows show how global liquidity correlates HEAVILY with the direction of Bitcoin. T You don't have to be a genius to see how beautiful this correlation is. And how sensitive #BTC is to excess capital in the system. As a risk on asset When ppl have easy money to gamble with , a portion of that ends up in the #Crypto markets. Currently you can see how aggressive the withdrawal of liquidity is across the globe In the USA, EU, China & Japan.
FRED:WALCL
by BallaJi
MACRO MONDAY 10~ Interest Rate & S&P500MACRO MONDAY 10 – Historical Interest Rate hike Impact on S&P500 This chart aims to illustrate the relationship between the Federal Reserve’s Interest rate hike policy and the S&P500’s price movements. At a glance the chart highlights the lagging effects of the Federal Reserves Interest Rate hikes on the S&P500 (the “Market”). In all four of the interest rate hikes over the past 24 years the S&P500 did not start to decline until 3 months into an interest the rate pause period (at the earliest) and in 3 out of 4 of the interest rate pauses there was a 6 – 16 month wait before the market begun to turn over. The move to reducing interest rates (after a pause period) has been the major warning signal for the beginning or continuation of a major market decline/capitulation. We might have to wait if we are betting on a major market decline. In the chart we look particularly at the time patterns of the last two major interest rate hike cycles of 2000 and 2007 as they offer us a framework as to what to expect in this current similar hike cycle. Why is this cycle similar to 2000 & 2007?.. because rates increased to 6.5% in 2000, 5.25% in 2007 and we are currently at 5.50% in 2023 (sandwiched between the two). These are the three highest and closely aligned rate cycles over the past 24 years. The COVID-19 crash is included in this analysis but has not been given the same attention as the three larger and similar hike cycles 2000,2007 & 2023. The Chart We can simplify the chart down to FIVE key points (also summarised hereunder): 1. Previously when the Federal Reserve increased interest rates the S&P500 made significant price gains with a 20% increase in 2000 and a 23% increase in 2007. - Since rates started increasing in February 2022 we have seen the S&P500 price make a sharp decline and then recover all those losses to establish an increase of 5% at present since the hiking started. - This means all three major interest hike cycles resulted in positive S&P500 price action. - For reference, a more gradual rate hike pre COVID-19 also resulted in 20%+ positive price action. 2. When the Federal Reserve paused interest rates in 2000 it led to a 15% decline in the S&P500 and then in 2007 it led to a 28% increase in the S&P500. It is worth noting that a lower interest rate was established in 2007 at 5.25% versus 6.5% in 2000. This might indicate that this 1.25% difference may have led to an earlier negative impact to the market in 2000 causing a decline during the pause phase. Higher rate, higher risk of market decline during a pause. - At present we are holding at 5.5% (between the 6.5% of 2000 and the 5.25% of 2007). 3. In the event that the Federal Reserve is pausing rates from hereon in, historic timelines of major hike cycles suggest a 7 month pause like in 2000 or a 16 month pause in line with 2007 (avg. of both c.11 months). For reference COVID-19’s rate pause was for 6 months. - 6 - 7 months from now would be March/April 2024 and 16 months from now would be Nov 2024 (avg. of both Jun 2024 as indicated on chart). 4. As you can see from the red circles in the chart the initiation of Interest rate reductions have been the major and often advanced warning signals for significant market declines, including for COVID-19. 5. It is worth considering that before the COVID-19 crash, the interest rate pause was for 6 months from Dec 2018 – Jun 2019. Thereafter from July 2019 rates begun to reduce (THE WARNING SIGNAL from point 4 above)…conversely the market rallied hard by 20% from $2.8k to $3.4k topping in Feb 2020 at which point a major 35% capitulation cascaded over 6 weeks pushing the S&P500 down to $2,200. Similarly in 2007 the rates began to decline in Aug 2007 in advance of market top in Oct 2007. A 53% decline followed. The lesson here is, no matter how high the market goes, once interest rates are decreasing it’s time to be on the defensive. Summary 1. Interest Rate increases have resulted in positive S&P500 price action 2. Interest rate pauses are the first cautionary signal of potential negative S&P500 price action however 2 out of 3 pauses have resulted in positive price action. The higher the rate the higher the chance of a market decline during the pause period. 3. Interest rate pauses have ranged from 6 to 16 months (avg. of 11 months). 4. Interest rate reductions have been the major, often advanced warning signal for significant and continued market decline (red circles on chart) 5. Interest rates can decrease for 2 to 6 months before the market eventually capitulates. - In 2020 rates decreased for 6 months as the market continued its ascent and in 2007 rates decreased for 2 months as the market continued its ascent. This tells us that rates can go down as prices go up but that it rarely lasts with any gains completely wiped out within months. September – The Doors to Risk Open We now understand, as per point 2 above, that an Interest rate pause is the first cautionary signal of potential negative S&P500 price action. Should the Fed confirm a pause in September 2023 we will clearly be moving into a more dangerous phase of the interest rate cycle. Based on the chart and subject to the Fed pausing interest rates from September 2023 we can now project that there is a 33% chance of immediate market decline (within 3 months) when the pause commences with this risk increasing substantially from the 6th and 7th month of the pause in March/April 2024. I have referenced previously how the current yield curve inversion on the 2/10 year Treasury Spread provided advance warning of recession/capitulation prior to almost all recessions however it provided us a wide 6 - 22 month window of time from the time the yield curve made its first definitive turn back up to the 0% level (See Macro Monday 2 – Recession Timeframe Horizon). Interestingly September 2023 will be the 6th month of that 6 – 22 month window. Both todays chart and Macro Monday 2’s chart emphasize how the month of September 2023 opens the door to increased market risk. Buckle up folks. March/April 2024 – Eye of the Storm On Macro Monday 2 – Recession Timeframe Horizon our average time before a recession after the yield curve starts to turn up was 13 months or April 2024 (average of past 6 recessions using 2/10Y Treasury Spread). From today’s review of the Interest rate hikes impact on the S&P500, we have a strong indication that March/April 2024 will be key high risk date also. Now we have two charts that indicate that the month of Mar/Apr 2024 will come with significantly increased risk. Its worth noting a pause could last 16 months like in 2007 lasting until Nov 2024, at which point we would be pretty frustrated if we had been preparing defensively since Mar/Apr 2024. Just another scenario to keep in mind. The Capitulation Signal Based on today’s chart, should interest rates at any stage decline we should be prepared for significant market decline with immediate effect or within 2 months (at worst). Regardless of any subsequent increases in the market, these would likely be wiped out within 6 – 9 months by a capitulation. An optimist could run a trailing stop and hope it executes in the event of. Bridging the Gaps Please have a look at last week’s Macro Monday 9 – Initial Jobless Claims if you would like to measure risk month to month. The chart is designed so that you can press play and have an idea of the risk level we are entering into on an ongoing basis. In this chart we summarised more intermediate risk levels with Sept-Oct 2023 as Risk level 1 (yield curve inversion time window opens and potential rate pause risk increase) and Nov-Dec 2023 as stepping into a higher Risk Level 2 (as increase in Jobless claims average timeframe will be hit). Should the yield curve continue to move up towards being un-inverted and should Jobless Claims increase then Jan 2024 forward this could be considered a higher Risk level 3 leading the path to our Risk level 4 defined today which is March/April 2024. Final Word It is worth noting that the Fed could surprise us and start increasing rates again, they may also not pause interest rates in Sept 2023. For this reason I included the small black and red arrows that provide a general timeline across different rate periods to help us gauge a market top (red arrows) and a market bottom (black arrows). The black arrows suggest a time window of 27 – 32 months from now being the market bottom. A lot of people are focused on when a recession or capitulation will start, we may want to start thinking a step ahead and prepare for the opportunity that will present itself at a market bottom. Having a time window can help us plan and be psychologically prepared to consider taking a position in a market of pain and fear should the timing window align. If we are expecting this bottom in between Oct 2025 and Mar 2026, we can make more rational decisions when the streets are red. We can try to make more definitive calls and decisions on an ongoing bases so please please do not take any of the above as a guarantee. We know the risk is increasing now and a lot of charts indicate incremental increases in risk up to Mar/Apr 2024, Nov 2024 and even January - March 2025. All of theses dates are possible trigger events but ultimately we don’t know. We are just trying to prepare and read the warning signs on the road as we drive closer to a potential harpin turn. If you have any charts you want me to look at or think would be valuable to review in the context of the above subject matter please let me know, id love to hear about it. PUKA
ECONOMICS:USINTR
by PukaCharts
6
[STUDY] Real Rates of BondsA study showing the real rate of returns on the various US Treasuries. Calculated by subtracting the YoY Inflation Rate (released monthly) from the Yield of the Bond. Real Fed Rate also shown for reference. Above 0 makes Bonds and Savings more attractive, aka more Demand for them. Price may increase and yields decrease, encouraging selling. Below 0 provides negative real return, making Bonds and Savings accounts unattractive, reducing demand. Price may decrease and yields increase to stoke demand.
ECONOMICS:USINTR
by PHICAPITALINVESTMENTS
Piles Of Doo-DooThe Biden Admin has single-handedly destroyed the Economy in record time. Core Inflation soars UP 400% in the first 12 month's. The only way that can happen is intentionally. Yet, there are no lockdowns, a "vaccine" has been released and there is no WW3. Plans backfired, now it looks like everyone is standing around trying to dig all the dog shit out of their shoes. Sorry, it's your shit and it belongs to you and nothing can save you now. This chart does not even include soaring Gas & Food prices which actually makes Inflation much worse than it's being portrayed here.
ECONOMICS:USCIREducation
by cldx
Excess Savings: Indication For Exceptional Inflation Expansion!Hi, Welcome to this analysis about the current and upcoming economical situation regarding the excess savings amassed in the corona crisis and the potential inflationary developments these can cause. There are also other factors that can accelerate inflation in the upcoming times especially with the ongoing central bank money press that shoot to astronomically high levels during the corona pandemic and the months after, still ongoing there is not an end in sight. Since the corona breakdown lows established the money stock increased more and more and caused an asset-price inflation in stocks, bonds and real estate as well. Taking the following factors into consideration the inflation can also increase seriously in consumer goods and real economy such as already seen in individual sectors such as the craft sector. Accumulated Excess Savings During The Corona Pandemic Crisis: As seen in the graphic the Excess Savings, the savings that households hold and do not spend immediately increased drastically during the corona pandemic as businesses shut down people hoarded the excess savings. According to Moody's Analytics, the Excess Savings in America grew to almost 2.6 Trillion US-Dollar, and around the world, people build up Excess Savings of 5.4 Trillion US-Dollar. These savings are waiting to be spent when the real economy shut-down-businesses widely open again. It is necessary to assume that these are historical high values never seen before which can cause similar inflation like in the 1940s or 1970s. Besides the high Excess Savings, the federal depth increased also substantially to similar levels like in the 1940s which served as one factor for the high inflation. High Demand And Low Supply As Production Decreased: As production during the corona pandemic crisis decreased and a vast majority of countries moved on to shut down businesses this caused a decrease in production and therefore in supply. On the other side the Excess Savings, as well as the printed central bank money, increased steeply. These developed conditions have a high tendency to lead to increased inflation as high demand meets the low supply moving the prices to the upside also shown through the output gap which experts expect to rose above the 2% level increasing the high-demand-to-low-supply dynamic. It is highly necessary to do not underestimate these dynamics and be prepared for such potential scenarios to do not get overwhelmed by circumstances when they happen. In this manner thank you, everybody, for watching the analysis, will be great when you support it, and all the best! Information provided is only educational and should not be used to take action in the market.
FRED:PSAVERT
by VincePrince
3
Oil Reserves Plummet to 40-year LowThe Biden Administration is treading on dangerous ground as it continues to deplete the Strategic Petroleum Reserve (SPR) to levels not seen in decades, as geopolitical tensions flare and as global crude prices remain high. The chart above shows that the Strategic Petroleum Reserve has declined to levels not seen since the early 1980s. The SPR is a tool used to alleviate the market impacts of both domestic and international disruptions, caused by among other things: weather, natural disasters, labor strikes, technical failures/accidents, or geopolitical conflicts. Source: U.S. Department of Energy. Office of Cybersecurity, Energy Security, and Emergency Response. This image is in the public domain. Since the start of 2023, the SPR has drained by another 6.5% or 24 million barrels. Source: U.S. Department of Energy. Office of Cybersecurity, Energy Security, and Emergency Response. This image is in the public domain. The SPR is comprised of 60 caverns, each one of which can fit the Willis Tower, one of the world's tallest skyscrapers. Source: U.S. Department of Energy. Office of Cybersecurity, Energy Security, and Emergency Response. This image is in the public domain. The decision to withdraw crude oil from the SPR in the event of an energy emergency is made by the President under the authority of the Energy Policy and Conservation Act (EPCA) and done through competitive sale. Perhaps what is so remarkable is that over the past 2 years, the Biden Administration has released nearly 300 million barrels of crude oil from the SPR, concurrent with the Federal Reserve undertaking the most extreme pace of monetary tightening on record in its attempt to maintain price stability, and yet crude oil prices have barely subsided. In fact, in recent months, crude oil prices have surged, as shown in the chart below. The global crude benchmark, TVC:UKOIL has been on an upward trajectory in recent months, soaring nearly 30% since June. On the higher timeframe chart, we can see that crude oil prices show strong upward momentum. As soon as the Federal Reserve pivots back to monetary easing crude oil prices will likely resurge. A log-linear regression channel is applied to the quarterly (3-month) chart of NYSE:OXY Petroleum, showing the current bull rally could just be the first leg of a multi-year upward trend. The red line in the middle represents the mean price and each gray line represents one standard deviation from the mean. Perhaps the tendency of crude oil to rise in price over the coming years is why the Oracle of Omaha , Warren Buffet, began purchasing a large number of NYSE:OXY Petroleum shares in 2022, accumulating more than a 25% ownership stake in the company by mid-2023. Some financial experts are sounding the alarm about the SPR depletion. The founder of The Bear Traps Report , Larry McDonald, has indicated that the drastic decline in U.S. oil stockpiles, a critical asset in times of conflict, undermines America's energy security. McDonald is warning that diminishing domestic oil reserves heighten America's dependence on imports, potentially exposing the nation to severe supply disruptions and extreme price volatility in the international oil market. Each time the price of crude oil subsides, petroleum exporting countries, including Saudi Arabia and Russia, cut production to keep prices higher for longer. To some, it may seem that these production cuts are a gray zone tactic meant to deplete an adversary of its strategic oil reserves before engaging them in a conflict. There is also collateral damage occurring to the U.S. dollar. The petrodollar system, which emerged in the 1970s when the U.S. abandoned the last vestiges of its gold standard, was a series of agreements between the U.S. and petroleum exporting countries to use the U.S. dollar for cross-border oil transactions. Since almost every country needed to import or export some amount of petroleum, the petrodollar system was a means of ensuring a perpetual global demand for U.S. dollars despite the currency not being redeemable at the Federal Reserve for anything of value. As crude oil prices continue to surge, despite the Federal Reserve tightening monetary conditions at the fastest pace on record, a crisis is unfolding for developing countries that lack access to dollars. These countries are on the precipice of hyperinflation. In essence, by tightening the supply of dollars the Federal Reserve is exporting inflation abroad, especially to those that lack easy access to dollars. Consequently, countries at the periphery of the dollar access hierarchy are being incentivized, now more than ever, to turn to alternative currencies, thereby accelerating de-dollarization. As oil prices continue their relentless march upward, the scenario continues to exacerbate inflationary pressures in the U.S., and even more so, abroad. Higher prices could compel the Federal Reserve to maintain higher interest rates for much longer than anticipated, even in the face of deteriorating economic conditions and rising unemployment, resulting in stagflation. Exacerbating the situation further are global climate change policy objectives, which act as a disincentive for countries to increase domestic oil production. If a major geopolitical conflict occurs when petroleum reserves are depleted and production is constrained, the outcome could result in severe stagflation, as prices spiral higher even though economic growth stagnates in the face of a fragmenting world. * * * Important Disclaimer Nothing in this post should be considered financial advice. Trading and investing always involve risks and one should carefully review all such risks before making a trade or investment decision. Do not buy or sell any security based on anything in this post. Please consult with a financial advisor before making any financial decisions. This post is for educational purposes only.
ECONOMICS:USCOSPRE
by SpyMasterTrades
49
Unemployment Rate at 54 yr low-Recession soon or not?A recession is not bullish for the overall market so studying how the civilian unemployment rate behaves before a recession hits should help tune out any and all noise from talking heads. The red shaded areas in the above chart shows past recessions. The red circles within this chart are times when the unemployment rate "flattened out" before either continuing downward or made an abrupt move upward. The blue circles are "V shaped" type bottoms where there was just an abrupt jump in unemployment from one month to the next. As you can see recessions always followed or were in the process once the abrupt move up in unemployment began. The green dotted line shows the historical context of a 3.4% rate in unemployment. As you can see on the far right, the current rate of unemployment has flattened out over the last 12 months, ranging between 3.4-3.7. If you are bullish equities, you have to ask yourself...what is the macro thesis for this chart to continue downward as it did in the other cases where a recession was NOT followed by a flattening of the unemployment rate? If you are bearish equities just know that this chart can remain within this range/stay flattened for another 9-25 more months before it abruptly moves upwards (like it did in the 1950's & 1960's). Perhaps the flattening out period even extends beyond a 3 year period. Needless to say...I am on extra high alert for signs of an equity reversal based upon the above however I'm not going to fight the bullish market sentiment either. Always be nimble.
FRED:UNRATE
by Vixtine
4
For an understanding of the future, look to the past?Soft landing? 📊 Analyzing the US economy through key indicators: SP500 📉: Historically drops before a recession. Unemployment Rate 📈: Tends to spike during/after the onset of a recession. ISM PMI 🚫: Values <50 often signal a contracting economy. Yield Curve 🔄: Inversions have preceded past recessions. While these correlations are strong, it's important to remember: Just because a recession was predicted in the past based on these, doesn't guarantee one now. Markets & economies evolve. Stay informed, not alarmed. See attached chart for insights!
FRED:UNRATE
by Ox42
Relationship between CPI and Oil price A rise in oil prices may cause the consumer price index (CIP) and Producer Price Index (PPI) higher. Today US CPI climbed to 3.7% from 3.2% as Oil price continues to raise high since June 2023. Rising oil prices increase the cost of transporting goods and services, as a result the inflation raises high. WTI CRUDE 88.73 BRENT CRUDE 92.09 MURBAN CRUDE 94.38 Producer Price index (PPI) Sep 14, 2023 (Aug) 0.4 %( expect) 0.3 %( Previous) We can expect coming PPI to rise higher than expected (0.4%) as there is a stronger correlation between oil prices and producer prices more than the correlation between the oil price and CPI as the (PPI) measures the average selling price from domestic producers and It can be directly linked to inputs.
ECONOMICS:USIRYYEducation
by NICKY-FX
Soft Landing?A lot of market participants are falling for the Fed's illusion that a soft landing has been achieved. However, the charts are still warning that a recession is coming. The chart below shows the extreme degree of inversion between the 10-year Treasury bond and the 3-month Treasury bill. The current inversion is the worst in over 40 years. A yield curve inversion reduces bank lending for various reasons, one of which is the removal of the incentive for banks to borrow at lower short-term rates and lend at higher long-term rates. Since bank credit is how most money comes into creation, a yield curve inversion is, therefore, a sign that monetary conditions are deteriorating. Indeed, manipulating the interest rate is how the central bank controls the money supply and induces a recession. The impact of rate hikes always occurs on a lagging basis. The lag can last anywhere from several quarters to several years. As the infographic below shows, an economic recession will likely begin in the U.S. between Q4 2023 and Q4 2024. The warning signs of the coming liquidity crisis are everywhere. In a prior post (shown below), @SquishTrade and I pointed out that a major disparity between the volatility of bond prices and the volatility of equity prices is occurring. This extreme disparity could be a warning that much greater volatility for equity markets has yet to come. Even for stocks that have experienced a strong rally in 2023, the basis of their surge is largely unsupported by dollar liquidity levels. In the chart below, the price of NASDAQ:NVDA is compared against the dollar liquidity index. This is further confirmed by the below chart, which shows how extreme the price of NASDAQ:NVDA as a ratio to the price of a risk-free 10-year Treasury bond has become. Never before have investors been willing to pay so high of a risk premium to hold Nvidia's stock. While anything is possible, the charts suggest that there isn't enough money in the economy to support the payment of debt at current yields. The below chart shows the price of long-term government Treasurys (adjusted for interest payments) as a ratio to the M2 money supply. There is simply not enough money in the M2 money stock for market participants to be able to pay all newly issued debt at the current high rates. When the liquidity issues begin to mount, the Fed will quickly pivot back to new money creation, as it did in March 2023 when it abruptly created the Bank Term Funding Program (BTFP), which is the latest of the many tools that the Fed uses to create new money. However, when the economy begins to slow, this time around central banks will get trapped because of commodity price inflation. Although commodity prices are generally disinflating at the present time, this slow disinflation is merely forming a bull flag on the higher timeframes. With unemployment also bull flagging on the higher timeframes, when commodity prices and unemployment concurrently break out, the result will definitionally be stagflation. Important Disclaimer Nothing in this post should be considered financial advice. Trading and investing always involve risks and one should carefully review all such risks before making a trade or investment decision. Do not buy or sell any security based on anything in this post. Please consult with a financial advisor before making any financial decisions. This post is for educational purposes only.
FRED:T10Y3M
by SpyMasterTrades
89
Exploring the Features of TradingView: Your Ultimate Trading PalIntroduction: TradingView has gained widespread recognition as a versatile platform for traders and investors, offering a wide range of tools and features to analyze and trade financial markets. In this guide, we will dive into the core features that make TradingView a go-to choice for traders of all levels. User-Friendly Interface Intuitive Charting : Discover how TradingView's user-friendly charting interface allows traders to analyze price movements with ease. Customizable Layouts : Learn about the platform's flexibility in creating customized layouts, allowing traders to arrange charts and tools to suit their preferences. Powerful Charting Tools Drawing Tools : Explore a variety of drawing tools, including trendlines, shapes, and Fibonacci retracement, to enhance technical analysis. Technical Indicators : Discover a vast library of technical indicators, from moving averages to oscillators, to aid in market analysis. Chart Types : Understand how TradingView supports different chart types, such as candlestick, bar, and line charts, catering to various trading strategies. Real-Time Market Data Real-Time Price Data : Learn how TradingView provides real-time and historical price data for a wide range of assets, including forex, stocks, cryptocurrencies, and commodities. Economic Calendar : Explore the integrated economic calendar, offering timely updates on key economic events and their potential impact on the markets. Trading Integration Broker Integration: Find out how TradingView allows users to connect their trading accounts with supported brokers to execute trades directly from the platform. Paper Trading: Learn about the paper trading feature, which lets users practice trading strategies without risking real capital. Social Collaboration Community and Sharing : Discover TradingView's social aspects, where traders can share ideas, charts, and analyses with the trading community. Script Sharing: Explore how users can create and share custom scripts and indicators with others in the TradingView community. Alerts and Notifications Price Alerts: Understand how traders can set price alerts to be notified when an asset reaches a specified price level. News Alerts: Learn about the platform's news feed and alerts for staying updated on market-moving news. Mobile Accessibility Mobile Apps: Find out how TradingView offers mobile apps for both iOS and Android devices, enabling traders to monitor and trade on the go. Scripting and Strategy Development Pine Script: Explore the proprietary Pine Script language, allowing users to create custom indicators and trading strategies. Conclusion: TradingView stands out as a comprehensive and feature-rich platform that caters to the needs of traders and investors across various markets. With its user-friendly interface, powerful charting tools, real-time data, social collaboration, and integration capabilities, it has become an invaluable companion for traders looking to make informed decisions and execute trades efficiently. Whether you are a beginner or an experienced trader, TradingView's diverse features empower you to analyze markets, develop strategies, and participate in trading with confidence.
ECONOMICS:USINTREducation
by gavrieltrades
Mastering Forex Trading Psychology for Consistent SuccessIntroduction: Forex trading is not just about analyzing charts and economic data; it's also about understanding and managing the psychological aspects of trading. In this comprehensive guide, we will explore the crucial role psychology plays in forex trading and provide strategies to help you develop a disciplined and resilient trading mindset. The Impact of Emotions in Forex Trading * Emotion-Driven Decisions: Understand how emotions like fear, greed, and impatience can lead to impulsive and irrational trading decisions. * Psychological Biases: Learn about common cognitive biases, such as confirmation bias and overconfidence, that can cloud judgment. * The Trading Cycle: Recognize the emotional stages traders often go through, including euphoria after wins and despair after losses. Developing Emotional Intelligence * Self-Awareness : Reflect on your emotional triggers and reactions when trading. Keep a trading journal to track your emotions and decisions. * Emotional Control: Learn techniques like deep breathing, mindfulness, and visualization to stay calm and focused during trades. * Stress Management: Implement stress reduction practices, such as exercise and meditation, to manage the pressure of trading. Building a Disciplined Trading Mindset * Trading Plan: Create a well-defined trading plan that includes entry and exit strategies, risk management rules, and clear goals. * Stick to the Plan: Develop the discipline to follow your trading plan consistently, even when emotions tempt you to deviate. * Accepting Losses: Understand that losses are part of trading and focus on the long-term strategy rather than individual trades. Overcoming Psychological Pitfalls * Revenge Trading: Avoid the urge to immediately recover losses with impulsive trades. Stick to your plan. * Overtrading: Set daily or weekly trading limits and avoid overcommitting capital in a single day. * FOMO (Fear of Missing Out): Resist chasing after quick profits on hot trends. Trust your analysis and strategy. Staying Informed and Continuously Learning * Market Education: Stay updated with forex market developments and continuously improve your trading skills. * Community and Mentorship: Join trading communities, forums, or seek mentorship to gain insights from experienced traders. Conclusion: Trading psychology is as critical as technical and fundamental analysis when it comes to achieving consistent success in forex trading. By understanding your emotions, developing emotional intelligence, and maintaining discipline, you can overcome psychological challenges and make more informed, rational trading decisions. Remember that mastering trading psychology is an ongoing process. Practice, self-reflection, and a commitment to improving your mindset will lead to better trading outcomes over time.
ECONOMICS:USINTREducation
by gavrieltrades