Differences between a stock and a bond?

Bonds are financial products that you purchase to make your capital profitable. These products are less known than stocks and also have completely different characteristics.

When buying a stock of a company you invest directly in the capital of this company. A stock is therefore a property title. In exchange for this investment, the company will reward you as often as possible by distributing its annual profits in the form of a dividend on the share. This dividend is, of course, variable: its size depends both on the chosen strategy by the directors and on the profit opportunities of the company.

When buying a bond you lend your capital to an organization that will pay off its debts or realize investments (the publisher can therefore be both an entrepreneur and a public group or a State or ...). A bond is thus a debt claim. It is proof that the publisher owes you a certain sum. In exchange for your loan, the publisher will reward you as often as possible by paying an interest in the form of a coupon. The name 'coupon' dates from the past: these financial effects were printed on paper and the collection of the interest was done by issuing the coupons that were cut from the paper effect.

A bondholder therefore has a different role than the stockholder. Even if the intended purpose of the bondholder is similar to that of the stockholder (= seeking returns for his assets), he behaves more like a 'lender' than as an investor. What then actually offers the best return?

The advantages of a bond:

The benefits of a bond can not only be measured in terms of profitability but also in function of the risk. If you lend money to someone, you may assume in principle that your loan will be repaid. The borrower agrees indeed to reimburse a certain amount within a predetermined expiration period. Only in the event of the publisher's inability (such as bankruptcy) will you no longer be completely certain that you will see your capital again. Bonds are therefore generally less risky than equities.

Another advantage: owning a stock does not mean that you will always receive a dividend, while as a bondholder you will receive a fixed yield in almost all cases (the size of your annual interest is known at the time of the purchase of the security).

When buying a stock you bet on a (financially) positive future of the company; With a bond you (the lender) sign, as it were, a contract with the borrower with which you immediately reach agreement on certain matters.

Because the risk is lower, the expected return is usually also lower. But in the context of a diversification of your portfolio in order to be best armed against the risks of the stock exchange, bonds therefore have a good place in your assets. However, before you compose your portfolio, you should still know that there are different types of bonds that do not all have the same degree of risk.

Daily Stock Trading Techniques

Stock investment is currently the choice of most people to gain profit. But to get a profit from stock investment investors must have a sniper strategy. Yes, of course the strategy applied determines the success of your daily stock trading.

There are some special strategies that can be done to get big profits. In stock trading, investors are required to know the ins and outs of this investment, because in this investment requires a good analysis.

If you can analyze, we can apply techniques or trading strategies to gain profit. Let us give you 3 daily trading techniques to great advantage.

3 Stock Trading Strategy

Scalping Strategy

Scalping trading technique is the most popular technique among retail investors. Scalping is a short-term trading with daily time frames up to weekly.

Usually traders who use scalping will apply technical analysis with a 5% profit shot and then sold.

How to use this strategy:

1. Trader must choose Blue Chip Issuer (LQ45) because the fluctuation can be controlled.
2. Use a maximum of 15% of the capital in 1 issuer
3. Mandatory use cut loss with a general ratio of 3% of entry value
4. Do not enter the entry when the price is positioned up, but the entry when the position of middle price low

Swing Trader Strategy

Swing trader technique is a technique used by traders in sideways position. Usually the time frame of this strategy can reach several weeks to several months. This strategy usually does not use Cut loss but uses the down point strategy.
The profit is around 15% - 30%.

How to Use This Strategy:

• Traders should be sure if they choose a healthy issuer in this case the management and financial condition of the company.
• Use a maximum of 25% of the capital in a single issuer (Capital 100jt Entry Max 25jt / Issuer) and then divided into 4 steps:

1. Step One: For example the price of Rp 1000 you enter 25 lots -> Rp 2.5 million
2. The second step: the price of Rp 800 entry 50 lots -> Rp 4 million
3. Step Three: Rp 600 price enter 100 lot -> Rp 6 million
4. Fourth step: Rp 400 entry price 200lot -> Rp. 8 million

• This figure will be formulated by you according to your needs
• The advantages of the technique is that you have measured & ready if the Issuer you choose is discounted up to 60%

Stategi Rally

The rally technique in stock trading is Trend Hunter, this strategy uses the concept of Buy Low - Sell High.
People who use this technique are those who patiently wait for the issuer to be completely discounted and just started to entry. Traders also usually tend to perform long-term analysis with candle weekly & Monthly.

How to use this strategy.

1. Entry Month June - August (when IHSG really discounted)
2. Analysis using candle monthly and make sure the price in Low Year to Date position. It is better to position the low area in the last 5 years
3. When you have selected the issuer, do entry with the concept of Dollar Cost Averaging with a maximum of 20% of your total capital.

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Easy and Profitable Forex Trading Tips

Easy and Profitable Forex Trading

Forex trading made easy - Forex trading is a foreign exchange business. This business itself has been started from many years ago that in outline, its history from divided into 4 stages, namely:

1. The first stage was in the golden period, between the years 1980-1914
2. The second phase of World War 1 period 1919-1939
3. The third stage of the Bretton woods period, 1946-1971
4. The fourth stage is the period of floating exchange rates, between the years 1971-present

The forex market can be classified into the period of a fixed exchange rate and a floating exchange rate period. Along with the development of this business era is also experiencing a variety of progress is increasingly amazing and transformed into the largest market in the world when measured by the value of total transactions.

With such a large transaction every day to reach vlume per day $ 1.4 trillion per day certainly offers a huge advantage as well. This opens up one of the exciting opportunities to earn an income online.

Many people who have made this forex as the main source of income. And that's only natural because forex is a very promising business, provided that the heart is managed with a lot of learning and tenag, it will menghasilakn profit is very abundant

In forex trading itself there are various kinds of systems and strategies that can be used, the easiest and safest trading system is the trading follow trend system. Follow means to follow so with this trading system traders only need to follow the movement of the market that is tranding.

The trend followers will look for trading opportunities from the breakout when trading the market into a certain direction. Characteristic of opening order in the form of pending stop.

Some indicators are often used by well-known traders

Moving average

Moving averages are indicators that serve to calculate the movement of prices within a certain time range

RSI

Relative streng index is an indicator used to calculate the comparison between the attractiveness of the increase and decrease in price, the value ranges from 0-100. With RSI you can find out whether a price is overbought or oversold.

MACD

This indicator serves to show the current trend and also can signal buy or sell. In the MACD there are two lines you will encounter, namely the line signal and the MACD line.

Candlestick

In addition to the above indicators there is also a candlestick that can help you in getting profits in trading.

Pinbar pattern

The pinbar pattern is one of the most profitable candlestick patterns that often appear on the chart. The shape of this pattern is its long shadow is always longer than the body and the tip of the shadow of its opponent (nose). The formation of pinbar candlestick pattern indicates trend forwarding.

Pattern inside bar

If the trend has reached its highest or lowest point usually this candlestick pattern most often appears and very profitable for its users. The pattern of the inside bar indicates the formation of a new trend because there is consolidation between sellers and buyers pulling each other pull

For those who are usually beginners they often make mistakes such as:

Forgot to install stoploss

The problem of stop loss is a problem most often forgotten by beginners. And if you do not use a stop loss will be at risk of losing big. For that try every time the transaction wear stoploss

Trading with uncontrolled emotions

For beginners, usually their trading methods only follow emotions especially if they just experience loss. For that the right way to deal with it is to stop trading for a moment to calm down.

Beginner traders do not understand the market conditions that occur

Because still beginners usually they lack knowledge and less understand the market conditions that occur. How to overcome it by continuing to learn and never give up.

Management Trading

In addition to indicators and candlesticks in trading is very important to pay attention to various management such as:

1. Time management: for good time management in forex trading try not to too often make transactions, especially for those of you who are beginners and not too understand the state of the market once a day is enough.
2. Financial management in trading: financial management is one of the keys to success in trading here you determine how much money you will risk.
3. Profit management benefits with 1: 2 of the money you risk is good.
4. Loss Management: is a setting about money that you are willing to relieve when loss occurs for example you make the rules a day will give up 20%, so if you experience losses reaching 20% ​​you have to stop your trading activities on that day.

Here is an example of an easy and profitable trading system:

The scalping system is close short-term trading in less than a few minutes by taking a pips profit of just a few pips with a large lot. Time frames commonly used in this technique are 1H and 5M.

1H functions to determine the major trend that is happening while 5M is used as a determinant of execution.

In addition to scalping you can also use day trading system .. day trading is an open trading system and close positions within the same day, this system is also very suitable for beginners.

Commodity Trading Online

WHAT IS COMMODITY?

Commodity Trading Online - Commodities are physical assets that can be traded like metals including gold, silver, platinum and copper, as well as crude oil, natural gas and other resources.

The value of commodities for traders that have little relationship with the ups and downs of currency and stock markets, so it is useful to create a diversified and stable investment portfolio.
Modern investment offers a variety of easy ways to take part in commodity trading. The most common is by trading CFDs (contracts for difference). This lets you take a position on commodity prices without actually owning an asset.

The advantages of CFD trading

• The ability to profit from the market is not only strong but also weak.
• Speculate in various markets from just one platform.
• Margin-trading allows you to create a diversified investment portfolio rather than locking all your capital into a single transaction.

GOLD - XAU / USD

The trading of gold commodities has become very popular, due to the growth of online investment, as it provides one of the easiest and most affordable ways to generate profits.

Gold has value that can be moved, which is large and has historically proven to be very reliable for gold traders. Plus precious metals generally become excellent supporters during periods where the currency is depressed and inflation is high.

The most popular commodities traded
An excellent backlash against inflation and deflation
Historically has a strong demand

TRADING TIPS COMMODITIES

Market analysis

Use charts to find out how gold behaviors or other commodities are in different timeframes. Back-test your strategy on historical data to see how the switch is. Look for the pattern, wait for the gap before trading, and trading follow the trend.

Get free Trading Signals to help you determine your trading, or use the free Autochartis market report to get a clear view of the latest trends in the most popular instruments. Technical analysis is essential to make the right decisions.

Choose your commodity trading strategy

CFD and Forex trading strategies vary greatly in the time and effort required as well as the analytics and instruments used, and most importantly the appropriate market situation. Understanding some strategies proves to be beneficial for your trading.

Learn what affects commodity prices

There are many geopolitical and economic factors that will affect commodity prices. Without question, the biggest factor affecting commodity prices is supply and demand in the market. Stay on top with market news and equip yourself with weekly and daily forecasts from our analysts to make informed decisions.

Do not forget about risk management

Protecting your account from adverse price fluctuations is an important part of trading strategy. Learn about important techniques of risk management.

Want to Increase Profit? Use the Right Money Mangement

Need to know, although your trading system provides a percentage of profit opportunities above 50% in every trade, but it can not guarantee you can be successful in this forex trading. Many say that 95% of traders have failed, I do not know if the numbers are true or not. However, I once met a trader who had suffered huge losses and losses in forex trading, but if he saw the trading system he used was very good.

Then what made him fail? Bad Money Management. Yes, managing inadvertent funds by using large lots makes many traders fail.

Money Management or margin fund management is the most important part of any trading system. Most traders take this very seriously and do not understand how important money management is.

It is important for you to understand the concepts in managing the funds and the decision to use the correct lot. Managing the right funds is by calculating the appropriate lot size in a single transaction. Also calculate the risk of loss that you will receive if the order is losing is the key of this Money Management.

I was very surprised when I met a trader who used the lot just by using a benchmark of how much $$ he will receive when profit and ignore the risk of losing a lot of $$ when he loses. This is very surprising. How he can have confidence that any open positions will definitely get a profit. No matter how great the trading system you have, if you do not manage the funds would someday suffer huge losses in just one open position.

There are many strategies in managing Money Management, but the point is how to minimize the risk of each open position. That's what counts.

To set up and create a Money Management strategy, you must understand this term, Equity.

Equity = Fund (your money in account) - Number of open positions. (This is just a simple formula)

If you look at the above simple formula, we can make a conclusion like this: If you have $ 200 in trading account and you open 1 position using a margin of $ 20, then your equity is still $ 180. If you reopen a position with a $ 20 margin, then your equity will be $ 160. You still think $ 160 is still a lot and intend to open the position again? Eits, that example above is just a simple formula.

We have not calculated the required margin usage, the lot and how much leverage is used. I'm sure $ 160 will disappear within a few days if your position is wrong.

If you're a tradint without proper fund management rules, you can actually say you're gambling, not investing. You do not see how your investment funds end up in the long run.

All you know is how much to get tens or hundreds of dollars in just one trade. Money Management not only protects margin funds in trading accounts, but also provides a very profitable portfolio for your long term investment objectives.

People go to Las Vegas, casinos or gambling houses to gamble and hope to win the jackpot in just one night and become rich. We know there are people who get that kind of luck. The question is how gambling houses still earn money the next day, even though they suffered losses due to 1 person who got the jackpot? In the long run, casinos still make a profit because they earn more money from people who do not win. The casino owner also believes that the person who got the jackpot will feel addicted and continue gambling in the following days. The result? Of course "Home Always Win" alias bandar will never lose, in the long run.

Then how to manage good funds?

Assume you choose risk percentage of 4% of total funds in trading account. If your funds are $ 100, then the value of 4% of $ 100 is $ 4. So in one maximum trade you incur a loss of $ 4 only. If the position is a loss, then your funds are still $ 96. Not bad. If using the percentage above, then your funds will be exhausted if in 25 times your open position losing positions in a row (25 x 4% - 100%).

If we use 2%, then required as many as 50 times the position of loss in a row for penyabis funds in trading accounts.

Or you can use a total percentage of risk by splitting in several positions. Your example chooses a 4% risk percentage. In 1 trading day you divide the 4% in some positions. Suppose you intend to open a position in several pairs at once such as USD / JPY and GBP / USD. Then the total margin used in both pairs is a maximum of 4%, should not be more.

Compare to this one ...

If you have $ 100 and set a 10% profit percentage. Certainly in your dreams is how to get 10% of $ 100 alias $ 10 in just 1 trade. If in 10 times you experience loss in a row, then run out without the rest.

The bad news is that many of the traders who manage management prefer to use the percentage of margin with how much of it he can. Indeed, human nature is greedy, or more thinking about how much he will get and ignore the risk of loss he has.

Remember, Forex Trading is a very appropriate investment for the long term, not a place to gain wealth in a short time.

Why Many Interested In Forex Trading?

The Foreign Exchange Market (Forex) is the largest financial exchange in the world. The amount of money vomume traded on the Forex market every day even reaches trillions of US dollars. The actors involved with this currency trading include big banks, central banks, currency speculators, multinational corporations, financial institutions and sometimes governments also play a role to stabilize the value of the currency.

Currently, a lot of retail traders (individual traders) who also participate in this forex market with the help of online brokers - commonly called forex brokers.

There is no exchange or place where buyers and sellers meet in the Forex market. All trades are done through computer network among traders in various parts of the world. In addition, unlike the stock market, the forex market is open 24 hours per day, as it is a global market. A market player in Hong Kong may be trading with a market player in Australia, while American market participants are sleeping.

There are several market systems in the Forex exchange system. First, there is a spot market. Spot market transactions are based on current currency values ​​(real time prices).

In addition there are two types of other forex markets, namely forward and futures markets. In the forward market, the buyer and seller agree on the exchange rate and the date of the transaction that has been set for a certain time in the future.

In the futures market, the currency price is bought and sold on the basis of contract size and due date. Futures trading occurs in public commodity markets.

Unlike stocks, currencies are traded against each other. If the stock price is quoted (quoted) from the price per share. While the exchange rate is pegged with other currency exchange rates.

So if you look at the exchange rate of a currency on a television show or other media that says USD / IDR = 13,000, it means that the value of $ 1 equals 13,000 rupiah.

Forex market is generally considered less stable than the stock market because in one day trading can reach 100 pips, even more. However, currency movements in the forex market move in line with demand and supply from market participants. In addition, economic news released every day to make the price movement becomes very high.

If you are interested in a flexible investment, with the opportunity to earn a profit per day, why not try to start investing in forex trading?