Inside Trade | Inflation

While watching the evening news, a familiar phrase “prices will go up” may often be heard whenever goods in the market are being reported. But in general, once the prices goes up, it means that there is an impending Inflation.

Inflation is the rate at which the general level of prices for goods and services are increasing, and thus the purchasing power of a currency is decreasing. Moreover, price inflation is measured through the inflation rate. Inflation rate is the annualized percentage change in a general price index (usually Consumer Price Index) over time.

The inflation rate and purchasing power are always like on a seesaw. If the inflation rate is down, the purchasing power is up and vice versa. Normally, central banks will make some movements to prevent or halt a severe inflation. Most central banks maintain an inflation rate of 2-3%

Inflation is one of the main indicators on how does an economy fare.

Inside Trade | Consumer Confidence Index

Most traders prefer to have a few fundamentals tossed in whenever they prepare their analysis. Though we can't expect everyone to do the same, it wouldn't hurt to have an additional understanding of the market.

Confidence. I remember my father telling me to stand straight, pull my shoulder blades down, and chin up. Confidence can bring in an impression of success and in time, success itself. Being confident has a lot of benefits and perks. The ability to pursue and move forward with your dream is one. In general, we are most likely to feel the same way, and this confidence is measured up by what we call CCI or better known as Consumer Confidence Index.

Consumer Confidence Index is a report released on the last Tuesday of the month at 10 am EST. It measures how confident consumers are feeling about their economy and their spending power. Normally, the more confident the people are, the more that they will spend because they are assured that their finances will be replenished.

If the more money is circulating, the economy will be stimulated and grow, increasing the value of the currency at the same time.

Investing 101 | Stocks and Shares

Although we're about to divert a bit away from our main topic, allow me to share some of the investing knowledge that I picked up along the way. Recently, my friend and I had a conversation on what we do with our own life and stuff. We went through the usual, what do you do? Where do you work? Is the salary enough? The usual if I may say. After sometime, our topic was drifted to investing for the future and ended up talking about stocks and shares. According to him, by the way he's a business major, if you own a share, you own a portion of the company. But a question lingered on my mind, how does it differ from stock?

Curiosity pecked me and urged my inner self to at least try to find something that may satisfy this urge to answer that is prodding me .

In my research in the world wide web, Share, by definition, is a single unit of ownership in a corporation, mutual fund, or any other organization. Meanwhile, Stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

As I understand it, they are almost the same thing. It also turned out in my research that these two terms are sometimes interchanged and only has a little distinction from each another. The difference between these two lay beneath their usage. According to sources, the word “stock” is generally used to refer ownership to various companies while “share” on the other hand refers to the ownership of a particular company.

So in case you will be presented with the same question, at least you could right away point out the difference between the two.

Inside Trade | Japan

Throughout history, technology had proven the huge part that it plays in our ever progressing society. From the day our forefathers invented the fire and tools, up to the day that even human touch could operate a gadget. It dictates how the world would fare and which one holds the control. It's a never ending race for the betterment of humanity; and the leading holds the power. Thus, it is important to consider it as a major aspect in our fundamental analysis.

Japan is currently the third largest economy next to China and US respectively. Aside from that, they are also known to be one of the major players in the technological race. And if you're trading yen, better scribble down some important points regarding their economy.

Technology and Automotive

Japan is very famous for their technology and automotive industry. In 2008, they are considered as the world's largest vehicle manufacturer but were ousted from their seat after China took over the following year. At present, they are maintaining their rank as second even if there are growing threats from South Korea.

Though they failed to maintain the leading position in the automotive industry, they managed to emerge as the one who has the largest electronics good industry. The major electronic companies in Japan are Canon, Nikon, Casio,Citizen, Fujifilm, Fujitsu, Hitachi, JVC Kenwood, Mitsubishi Electric, NEC, Toshiba, Sharp,TDK, Seiko Group, Ricoh, Pioneer, Panasonic, Olympus, Nintendo. Most of which belongs to the global stage.

Japan is also known to be leading in developing the future. Specifically, the robotics industry. Reports regarding their latest innovation from robotic dogs, robot maids, robot entertainers, and even news of a 13 foot human piloted robots are sprouting like mushrooms. Though its maturity is still on the way, it will most probably change the game once it does.

Forexpress | Just in Time – Fiscal Cliff Deal

Suspense hung over American citizens while waiting for the new year, as the deal to avert fiscal cliff was yet to be decided.

After a tough deliberation, the US Congress finally supported the deal which would steer US away from the fiscal cliff. The deal proposals which has been ricocheting for some time now had finally been agreed upon by both sides.

The deal between the White House and Senate Republicans includes raising taxes on rich and put off automatic $109 billion budget cuts for two months. According to some reports, the deal is somewhat temporary and will be finalized within two months time. Also, it only covers the significant negative economic impacts and not all of it.

If the deal wasn't passed on time, every American would've to brace themselves for the effect of tax increase and spending cuts.  

Inside Trade | Basic Candlestick Patterns

The main concept of technical analysis is that the movement of the market repeats every now and then.

After being introduced to the types of charts, especially to the Japanese candlestick, a trader should already know that since the market repeat its movement, certain patterns may appear from time to time.

There are 12 major candlestick patterns: Doji, Gravestone and Dragonfly Doji,Long-legged Doji, Bullish Engulfing Pattern, Bearish Engulfing Pattern, Dark Cloud Cover, Piercing Pattern, Hammer and Hanging-man, Morning Star, and Evening Star.

Doji – displayed as a candle without a body, Doji denotes the indecisiveness of the investors. It means that it may mark an impending reversal if in case it appears on a long trend. Traders must preparer for a major trading decision.

Gravestone Doji and Dragonfly Doji – Both patterns are common before a trend reversal. The Dragonfly usually shows a “T” like candle who has a long lower shadow but has no body and upper shadow. Meanwhile, Gravestone is like an upside down “T” which looks like the reverse of the Dragonfly. It has no lower shadow and body but has a long upper shadow which made it look like an erected Japanese gravestone.

Long-legged Doji – this Doji may be compared to the common type but it only has a longer shadow. It indicates that even if the price movement shows a lot of trading activity, the next direction must still be confirmed.

Bullish Engulfing Pattern – this type of pattern is formed at the end of a bear trend. This chart pattern shows a small black candlestick followed by a large white candlestick, “engulfing” the smaller candle. This indicates that the bull had assumed control on the trend and overcoming the the selling pressure.

Bearish Engulfing Pattern – this is an opposite of the Bullish Engulfing Pattern and are formed at the end of a bull trend. It is displayed as a small white candlestick being overwhelmed by a large black candlestick and is showing that the bear had taken over.

Dark Cloud Cover – A pattern which involves a white candlestick being followed black candlestick. It may be a sign of a future bearish trend.

Piercing Pattern - it is a pattern which involves two candlesticks. The candlestick for the first day is black then followed by a white one on the next day. The opening of the white candlestick is way below the range of the candlestick for the previous day. It will then go up and will close above the half of the black candlestick. It signal the end of a small to moderate downtrend and also the time for traders to open a buy position or close their sell position.

Hammer and Hanging-man – the name of the candlestick depends on its color but has similar formation, a small body with a long lower shadow. A hanging man is a bearish candlestick formed at the end of a bull trend. Meanwhile, hammer is found at the end of a downtrend and indicates that although the bullish investors doesn't have the full control, the influence of the bull is getting stronger.

Morning Star – a bullish candlestick pattern consisting of three candle. The first candle is big black candle located on a downtrend. Meanwhile, next to it is a small white candlestick followed by another big white candle. This pattern denotes that the bearish trend will reverse.

Evening Star - the opposite of the Morning Star.

Venturing on InstaForex | Best Analyst Wins 45 Gran

The year long wait to announce this year's best analyst is finally over. Last November 30,2012, the Analyst of the Year award was concluded and three winners are proclaimed and awarded with the titles and prizes.

The one who claimed the first place this year is Yuriy Zaytsev from Russia. Meanwhile, Gerardo Narciso Palomino from Peru assumed the second place; and Stanislav Polyanskiy from Ukraine holds the third place. Each of them won a managed account worth $45,000.

Though the awarding is still new, it already garnered attention among Forex traders. Not only that, it also lifted the quality of analysis by allowing traders to compare the works of one another. The works which in time will forge the best. Like a tempered steel heated and beaten and hardened with cold water.