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#SECGuidance Consumer price index is referred to as that index that is used in calculating the retail inflation in the economy by tracking the changes in prices of most commonly used goods and services. In other words, the consumer price index calculates the changes in price of a common basket of goods and services. It is also called a market basket and is used for calculating the price variations in fixed items. The market basket that is used by CPI in calculating price changes represents the most common goods and services that are consumed within the economy and is therefore the weighted average for those goods and services. The items that are considered as a basket are goods related to food, clothing, transportation, housing, electronics, apparels, education, medicine, etc. CPI can be used to calculate the cost of living of the people of a country and also the changes in the purchasing power of the currency of a nation. CPI detects the price changes of the items falling under the common basket and by averaging those prices. CPI is found to be a good measure for determining the rise in prices (also referred to as inflation) and falling prices (referred to as deflation). How is CPI calculated? The Consumer Price Index or CPI assesses the changes in the price of a common basket of goods and services by comparing with the prices that are prevalent during the same period in a previous year. The formula for calculating CPI is CPI = (Cost of market basket in a given year / Cost of market basket in base year) x 100 Importance of CPI CPI is a widely used measure for determining inflation in an economy. Rising inflation results in the diminishing standard of living for the residents of a nation. Over a period of time, it will result in an increase in the cost of living. A high inflation rate will result in increase in prices of goods and as a result there will be less manufacturing, which will result in loss of jobs.
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#CPI&JoblessClaimsWatch What Are Jobless Claims? Jobless claims are a statistic reported weekly by the U.S. Department of Labor that counts people filing to receive unemployment insurance benefits. There are two categories of jobless claims: initial, which comprises people filing for the first time, and continuing, which consists of unemployed people who have already been receiving unemployment benefits. Jobless claims are an important leading indicator of the state of the employment situation and the health of the economy. KEY TAKEAWAYS Jobless claims measure how many people are out of work at a given time. Initial jobless claims represent new claimants for unemployment benefits. Continuing jobless claims are people who are continuing to receive benefits. It is generally a poor sign for the economy when a growing number of people who are willing to work can't find jobs. Because weekly jobless claims can be very volatile, many economists monitor the moving four-week average. Understanding Jobless Claims The nation's jobless claims are an extremely important indicator for macroeconomic analysis. A weekly report produced and published by the Department of Labor (DOL) tracks how many new people filed for unemployment benefits in the previous week. As such, it is a good gauge of the U.S. job market. For instance, when more people file for unemployment benefits, it generally means fewer people have jobs, and vice versa. Investors can use this report to form an opinion of the country's economic performance. However, it is often very volatile data because it is reported every week. The moving four-week average of jobless claims is often monitored rather than the weekly figure. The report is released Thursday mornings at 8:30 a.m. ET and can be a market-moving event. There were 219,000 initial jobless claims filed in the week ending Feb. 15, 2025, and about 1.87 million continuing claims during the week ending Feb. 8, 2025. The unemployment rate was 4% as of January 2025.
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#TradingPsychology Trading psychology is the emotional component of an investor's decision-making process, which may help explain why some decisions appear more rational than others. Trading psychology is characterized primarily by the influence of both greed and fear. Greed drives decisions that might be too risky. Fear drives decisions that might avoid risk and generate little return. Behavioral finance has documented several psychological biases and errors involved when making trading or investment decisions. Understanding Trading Psychology Trading psychology can be associated with a few specific emotions and behaviors that are often catalysts for market trading. Conventional characterizations of emotionally driven behavior in markets ascribe most emotional trading to either greed or fear. Greed can be thought of as an excessive desire for wealth, so extreme that it sometimes clouds rationality and judgment. Greed can lead traders toward a variety of suboptimal behaviors. This may include making high-risk trades, buying shares of an untested company or technology just because it is going up in price rapidly, or buying shares without researching the underlying investment. Additionally, greed may inspire investors to stay in profitable trades longer than is advisable to squeeze out extra profits or to take on large speculative positions. Greed is most apparent in the final phase of bull markets when speculation runs rampant and investors throw caution to the wind. Conversely, fear causes traders to close out positions prematurely or to refrain from taking on risk because of concern about significant losses. Fear is palpable during bear markets, and it is a potent emotion that can cause traders and investors to act irrationally in their haste to exit the market. Fear often morphs into panic, which generally causes significant selloffs in the market from panic selling. Regret may cause a trader to get into a trade after initially missing out on it because the stock moved too fast.
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Trading psychology is the emotional component of an investor's decision-making process, which may help explain why some decisions appear more rational than others. Trading psychology is characterized primarily by the influence of both greed and fear. Greed drives decisions that might be too risky. Fear drives decisions that might avoid risk and generate little return. Behavioral finance has documented several psychological biases and errors involved when making trading or investment decisions. Understanding Trading Psychology Trading psychology can be associated with a few specific emotions and behaviors that are often catalysts for market trading. Conventional characterizations of emotionally driven behavior in markets ascribe most emotional trading to either greed or fear. Greed can be thought of as an excessive desire for wealth, so extreme that it sometimes clouds rationality and judgment. Greed can lead traders toward a variety of suboptimal behaviors. This may include making high-risk trades, buying shares of an untested company or technology just because it is going up in price rapidly, or buying shares without researching the underlying investment.
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#StaySAFU StaySAFU is a platform designed to assess the risk of scams within the decentralized finance (DeFi) world, particularly on the BNB Chain. It uses the SAFU Scanner to analyze factors like token liquidity, smart contract code, and holder distribution to help investors identify potential fraud. The scanner offers both free and complete reports, with the latter providing detailed analysis. StaySAFU aims to empower investors by providing information on the reliability of token development teams and the risk of scams, according to Coinbase.
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