Rabu, 28 Maret 2012

Frequently Asked Questions by a Newbie Investor and Trader :


1. Who has the institution and where it is?

 
          It is not owned by a particular person, such as Forex is the interbank market, which meant that the transaction was carried out only between two participants - seller and buyer. Similarly, the stock market, future index and commodity market itself has in many developed countries. So long as the banking system and stock exchange remain, forex and other financial fund business will still go on. This is not linked to any country or government organizations

2. How can I start trading Forex or other financial fund business?
 
You must register a trading account with a Forex broker as well as banking and stock exchange in Online Trading. Then you can start using the program financial fund their clients' businesses to buy and sell currencies, stocks, indexes, commodities and bonds. It will take less than 5 minutes of your time, with a range of leverage and the hose as feenya point.

3. Operating hours of the Forex market works and other financial fund ?

 
 Forex and Commodity Market is open from 22:00 GMT Sunday starting from the Asian market (opening of Australia trading session) till 22:00 GMT Friday (closing of USA trading session). Being for stock and indices will apply to any State in which any national stock exchange take place in different working hours with the stock of other countries.
4. What is a Long Position and Short Position ?

First, you must specify whether you want to buy or sell.
* If you want to buy or long positions such as Forex, which actually means buy the base currency and sell the quote currency, you want the base currency increases in value and then you will sell it back at a higher price. In speaking traders, this is called "going long" or taking a "long position". Just remember: buy = length.
 * If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you'll buy it back at a lower price. It's called "going short" or taking short positions, sell = short.

5. How to Bid and Ask Spread Position

 
All Forex quotes and other financial fund has a two-way price, the bid and ask prices. The bid is always lower than the asking price.
  Bid is the price at which dealers are willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (the trader) will sell.
   Ask is the price at which dealers will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy.
Difference between supply and demand prices is known as the spread.

6. What is a Pip and Pip Value?

 
The smallest increase in the price currency can make. Also known as points. For example, one pip = 0.0001 for EUR / USD, or 0.01 for USD / JPY.
Pip value can be either fixed or variable depending on the currency pair. eg The pip value for EUR / USD is always $ 10 for a standard lot, $ 1 for mini lots and $ 0.10 for micro lots.

7. What is a Lot ?
 
Standard size units of the transaction. Typically, one standard lot is equal to 100,000 base currency units, 10,000 units if the mini, or 1,000 units if the micro. Some dealers offer the ability to trade in any size unit, down to as little as 1 unit.

8. What is the meaning of the Standard Account?

 
 Trading with standard lot size, usually 100,000 units of base currency. eg The pip value is $ 10 for EUR / USD.

9. What is a Mini Account and Micro Account?

 
Trading with mini lot sizes, generally 10,000 units of base currency. eg The pip value is $ 1 for EUR / USD. Trading with micro lot sizes, generally 1,000 units of base currency. eg The pip value is $ 0.10 for EUR / USD.

10. What is a Margin?

 
Margin is money you must have an account at your broker to secure your open position. Different brokers require different amount of margin money to keep your position open. Security deposit is required to open or maintain a position. Margin can be either "free" or "used". The margin used is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions.

With a $ 1,000 margin balance in your account and 1% margin requirement to open a position, you can buy or sell a position worth up to a notional $ 100,000. This allows the trader to use his account up to 100 times or a leverage ratio of 100:1. If the trader's account falls below the minimum amount required to maintain an open position, he will receive a "margin call" requiring him to add more money into his account is open or closed position. Most brokers will automatically close a trade when the margin balance falls below the amount required to remain open. Amount needed to maintain an open position depending on the broker and could be 50% of the initial margin required to open trade and investment.

11. What is the meaning of Leverage?
 
Leverage is the ability to prepare for your account to a position greater than your total account margin. For example, if a trader has $ 1,000 of margin in his account and he opens a $ 100,000 position, he took advantage of his account by 100 times, or 100:1. If he opened his $ 200,000 position with $ 1,000 of margin in his account, then the leverage is 200 times, or 200:1. Increase the leverage will magnify both gains and losses.

To calculate the leverage used, divide the total value of your open positions with a total margin balance in your account. For example, if you have $ 10,000 of margin in your account and you open one standard lot of USD / JPY (100,000 units of base currency) for $ 100,000, your leverage ratio is 10:1 ($ 100,000 / $ 10,000). If you open one standard lot of EUR / USD for $ 150,000 (100,000 x EURUSD 1.5000) your leverage ratio is 15:1 ($ 150,000 / $ 10,000) ..

12. What is the meaning of support (Support) and Resistance (Resistance) ?

 
Support (Support) is a technical price level where buyers than sellers, so it causes the price bounce up on the based of the price floor for a while. Resistance (Resistance) is a technical price level where sellers than buyers, causing prices to fall in the price ceiling bounce while.
If the price after effort 2 -4 times to break more down price on below of the Support Line and some indicators to recommended that the price is move up, so this time is moment to buy on strength or buy on weakness. Also for Resistance Line if the movement price is not able to break more up on the upper Resistance Line and some indicators tell you that its time to sell on strength or sell on weakness. So watch closely and more learn on indicators and fundamental data that give you more confidence  to take a position with careful safely investing and trading.

13. Forex trading strategies and investment and financial fund is best?

 
No,
but of course there are some methods that strategy is good enough, adequate, prospective, and can be trusted. For that, you should always be diligent in reading and looking for a book or via the Internet in various ways and methods are good enough for you to reap optimal benefits without having to try to look for a big profit by greed, but ultimately would be detrimental to your own. You must continue to develop its own strategy for each market situation allows, if you want to make a profit. Specific strategies can only be good for a specified period and for a particular currency pair for the Forex market and thus also for other financial fund.

14. How much money do I need to start trading Forex and other financial fund?

 
With forex you can start trading Forex with as little as $ 1. Typically, the minimum amount varies from $ 100 up to $ 10,000 ($ 100,000 and more for Interbank trading), as well as for the Commodity and Index Future in accordance with its own price level.

15. How can I send my margin money?
 
If you have a Credit Card or International Debit Card as provided by international banks and the stock in any state institution or other provider. Or some transfer device like Liberty Reserve,  Easy Pay, and the others which be trustee to transfer your money safely.




Let see Monthly and Weekly Forecast 
on  Forex, World Indexes and 
Commodities Market

Managing Your Funds with High Return Low Risk

Contact :
Edmond F. La'lang
Email  :   edmond.lalang@gmail.com
Telp.    :  +62031-3538606
HP         :   +62081-553080521 
Linkedin : 
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Risk Management Method of Investing and Trading


1. Trading Risk Management :

Trading generally performed by a retail investor who is short of 15 minutes to 1 week and always use technical methods of the various indicators of existing graphics. When trading, an investor Forex and other financial fund to double the capital, and risk of loss not only as a potential revenue, but also the money invested. Deviation from the average yield is expected to determine the risk of investors in financial markets. Trading irregularities can bring higher profits but also losses.

Financial risk management trading does not offer a guarantee of success, but together the important parts of it. Each activity in the financial fund industry market, including Forex is risky. That is why the use of risk management methods will be able to reduce the potential for large losses.

   1. Determine the position Stop Loss and Target Price is fixed;
   2. Adequate capital investment with a good distribution of the portfolio;
   3. Trend line analysis and make the right trading;
   4. Managing Emotions in a controlled manner so as not to overdo it.

Risk management methods used after opening a position. The main risk management method is the delivery order which hold large losses. So do cut loss if the loss is too big and not be covered in a short time, unless you have sufficient capital to hold it so as not exposed to margin loss of availability of your funds on the trading positions taken.
Stop-loss (literally means to stop the loss) - is a point where a trader out of the market to avoid a catastrophic situation. You should set stop-loss when opening a position to prevent the loss, because of market volatility is very large and often volatile fluctuations up and down at intervals with great prices.

- There are several types of stop-signal :

* Stop the initial signal will determine the amount of deposit or interest rate that the trader is prepared to lose. When prices move towards this position and achieve it, the position of a fixed level, merchants can close it and do not exceed the loss had been determined earlier by the trader.
* Forgot to do a stop signal is when price is moving towards a position, and a stop signal is determined later, according to the merchant's preference. Must do change direction, if the price reaches the signal, and traders out of the market and profit earning potential (depending on when the price starts to move).
* Profit when demolition is pure profit has been obtained, and the closed position.
* Stop signal at the time was when, in course of time, the market is not capable of providing a benefit that is required, then the position needs to be closed.

2. Investment Risk Management :

Is a form of investment business activities are long-term (1-10 years) in which the investor would put funds to make a profit. Long-term business activities is also related to the readiness of large capital, professional management, technology, human resources and many other things. It also includes business financial fund, where investors invest substantial funds in the long run. As such investments will face many external and internal challenges that all goes well and smoothly. Normally the investment is in addition to setting up a large capital base, has always been supported by a grant of credit from banks and other financial institutions so that capital will be entirely met by the capital structure of the capital of 20-40% are loans amounting to 60-80% for professionally managed. Actual capital structure that is inherently unhealthy is 60% equity and 40% credit, so that credit risk will also decrease. But unfortunately with the science of financial engineering, financial experts even want to get a great leveraging but with little capital. Is experienced by many companies and the state of real and financial fund that is now experienced by developed countries and multinational companies with a debt crisis is a difficult issue paid in full. To the State can still issue treasury bills for the support of the IMF and the region remains at risk despite the default (default). Was for real and financial companies receiving bailout money (bailout) from their own country, selling high-yield bonds, debt swaps, mergers, sell some stocks on the cheap, selling subsidiaries or divisions may even be liquidated because its debts are almost through authorized and guarantee credit. The greater portion of the credit, the credit risk will be the greater. In the investment business, the company will still face internal risks (operational) and external risks of the macro economic impact in the form of interest rate risk, inflation risk, forex risk, credit risk, market risk, business risk and the risk of competition and the entry of new comers, new products and new technology.

For that course, the company must manage its business should always consider the risk factors above that companies can avoid the risks and issues of loss, failure and defeat in the market, credit risk and often have mortgage arrears rate on loans that have to rollover even in refinancing to increase the capital as part of the capital base (own) and got a lot of credit erosion of internal and external risks. As well as the risk of trading, the investment risk will be much more risky because it involves capital and a larger credit. In the economic sphere, the business will always be fluctuations in the long term for being anticipated by the company that did not run the risk of losses to bankruptcy. Management must be good at gathering and formulation of business strategies in order to survive and even continue to grow organically and be able to expand the business well and correctly.

So the company should always monitor the progress of the risk of fluctuations in various professional manner and method that is more precise and managed so as not always entangled in an issue and the risk is to continue to survive. Management must have completely of the micro and macro analysis on the range of possible fluctuations, changes, upheavals and crises to be faced in the future in the period 1 - 1o years with various creations and innovations in order to continue survive, a winner, even one step ahead one leap ahead. A variety of data must be analyzed in a complex, holistic and comprehensive in order to recognize the strains of business fluctuations, macroeconomic, consumer tastes and competition with higher quality type of product and competitive prices. Similarly, business investment in the financial fund also must be learn and analyze a variety of macro economic data in order to determine the type of business financial fund which provides enough long-term benefits are not affected by short-term price fluctuations. So the buying and selling will be right in her prediction that prices will go up or down for several months, quarters, semesters or even years, so it will get the optimal benefit without losing meaning.

Given these risk factors, the company should be more familiar with the dynamics and fluctuations in the share market, macroeconomic and all variables are always dynamic and volatile with frequent turmoil and economic crisis, social and political well-managed wisely based on a vision that far into the front of the condition of the development of internal factors and external variables with a variety of business strategy and method of the business model of SWOT, TOWS, BCG and other models to restructure in order to survive the material becomes more developed again.    




Let see Monthly and Weekly Forecast 
on  Forex, World Indexes and 
Commodities Market

Managing Your Funds with High Return Low Risk

Contact :
Edmond F. La'lang
Email  :   edmond.lalang@gmail.com
Telp.    :  +62031-3538606
HP         :   +62081-553080521 
Linkedin : 
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The main factors that support the strategies of successful investing and trading :


1. Investors who get into financial fund market fundamental analysis is always done in the medium and long term period and not too affected by the volatility of short-term fluctuations as a businessman in real sector. While traders will conduct analysis of technical indicators and effort in the short run in the first period including a high-risk groups and bring them closer to failure. The main reason that the short-term trading largely unsuccessful is not the fact that traders are placing themselves within the time limit, but the lack of good training and a trading plan are accurate. Lack of experience and deep knowledge of good and not allow even a small mistake, which could result in loss of deposit trader. At the same time, the merchant as it often does not have enough money in their accounts. More successful traders working in the medium and long term as a long term investor. Statistically, the "medium and long-term trade" is more successful. The same can be said that the money invested, the ability to remain on the market a lot depends on the amount of initial funding, the greater the more able to survive longer and can withstand a variety of risk of loss prior to getting a bigger profit. 
 
2. Successful investors and traders will always take the loss of bidding (bid) and the correlation of income, while the loser is just concentrate on their successful bidding. It is much more important to keep track of your risk rather than profits or losses. Investors and professional traders will always estimate how many of them can benefit and how much they could lose (loss).

3. Missed opportunities for investors and traders who often spend more time on analyzing the market to wait for a good while but ultimately missed the train and the price has gone up high or down long way down. Usually the loser would pursue a position at the high price will drop soon or wait for a cheaper price (on the dip), so his position will be bought at high prices with a potential loss as prices come down soon or sell too early or too down in price is the market will soon up. This makes the loser always loses and the turmoil and confusion facing financial fund fluctuations in the market. To be successful is first to decide how to behave in the current situation and implement their strategies according to their conclusions. If investors and traders can predict the reaction of the crowd (mob psychology), then he will certainly gain greater success. Probability (chance) of the profits will be much higher if an investor and trader can respond to acts of irrational buying and selling than people with a rational plan of action. Therefore, it is much harder to be a successful analyst of the mental attitude of the investors and traders. An analyst should do the job much more complicated, because they have the vision to forecast market movements are fundamentally and recommend ways to get the maximum benefit while all successful traders have to do is follow the technical market.

4. As a rule, investors and traders who can not control your emotions, then they will never succeed. Investors and professional traders and experienced in analyzing the market is always put aside their emotions. In the case of an investor and trader who opened (open buy or sell) and close positions (close buy or sell) just based on emotion and feeling, then this approach can not be considered good and logical. However, a complete ignorance of one's emotions would be wrong too. Sometimes excessive stress can lead to mental illness and the loss of all trade skills. The best way is to keep track of your emotions and to consider whether the reasons for one or other decisions remain. 

5. All investors and experienced traders would be concerned about the truth of their own, while the professionals acknowledge their emotions but not allowing them to take over your mind right. Successful traders recognize only the factors that help or prevent the for profit. It is very important to remain aware of the process in the market, however, need also to share personal life and commerce. Considerable energy may lead to mental disorders and physical fatigue. Investors and professional traders immediately react to the market that is flexible and agile reaction to follow the trend and market dynamics, because the only way was to get money for you.

6. After losing money while trading losers start to buy new books or trading system and follow their concept. Meanwhile, a professional analysis of methods to hide the incident and the edits are given the results of the analysis. A more successful trader does not switch to the trading system at the same time he is done after realizing that the old one does not work properly. Successful traders will always stick to the system he developed with the use of only a few trading strategies used to do.

7. Investors and traders who have not experienced in investment and trade quite often try to repeat the investment and trading techniques that successful traders and famous. At the same time, professionals consider all possible strategies, including those of well-known merchants, but use it only in cases that match their trading style. Individuality is an investor and trader in the market and knowledge of the trading system itself is far more relevant than the achievement of the famous market players.

8. Often, investors and traders who have not experienced a variety of factors that will help them earn a profit. The amount of money in circulation is defined for earnings per merchant, who obviously realized by experienced traders. The amount of money that flows from the business Forex, Indices, Stocks and Komodit as clappers shall exceed the amount of money that flows out of (losses) and it certainly needs to be considered by each investor and trader as part of Risk Management.

9. As a rule, all investors and traders are beginning to lose the opportunity to benefit really have to try very hard, while the more successful traders profit easily. Trading is a pleasure for them, but they do very seriously. Psychiatrists say that the seriousness of the excess make a person more susceptible to disease, because it was too stressful.

            Both investors and successful traders and losers will invest and trade in financial fund market as a game like some people believe that "Life is a game". If we compare it to a game of bowling, the beginner to realize that the ball is thrown by an experienced professional without being seen as an effort of the pretty and much time is spent outside the "big game". As in sports, investment and trade, much influenced by internal and external factors. You should be very serious about each offer you the position. Difference between the professional and novice is that the professionals follow investment and trading strategies are accurate and that beginners make investments and trade as a regular game.




Let see Monthly and Weekly Forecast 
on  Forex, World Indexes and 
Commodities Market

Managing Your Funds with High Return Low Risk

Contact :
Edmond F. La'lang
Email  :   edmond.lalang@gmail.com
Telp.    :  +62031-3538606
HP         :   +62081-553080521 
Linkedin : 
http://www.linkedin.com/home?trk=hb_tab_home_top
Facebook : Edmond F. La'lang     https://www.facebook.com/

Various Macro Economic Indicators can be predicted well by Econobusiness Biocycle without having much to do Dynamic Prediction Revision


By: Edmond F. La'lang (observer of economic and environmental)

           
Economic activity is an activity all of an economic community in a district, province and country that can provide economic benefits in the form of profits, production and the marketing channels for the supply of goods and services (including financial fund) for the consumption needs and community services in the region and his country. This economic activity will provide a dynamic of growth for economic progress and prosperity for economic actors (profit), employees and labor (salaries and wages), and for the stakeholders ie the state (taxes) and society (multiflier effect). Economic activity will provide an aspect of a dynamic growth with the ups and downs of the economic conditions in the production of goods and services, entry and exit flows of real investment and financial fund, monetary and fiscal sectors in the course of government according to the state budget, import and export activities of various economic activities other.

          
Economic growth in the form of economic dynamics is an Economic Biorhytmic a region, province and country that shaped the sound and economic fluctuations are often given in the form of various "Macroeconomic Indicators" is the level of economic growth, inflation, interest rate and credit SBI, the Rupiah, reserves, surplus-deficit balance of payments in international trade and government budget (Current Account), the Money Supply (Money Based Indicator), the price of fuel and basic food commodities and industrial raw materials and consumption, and others. But it is also important is the Debt Service Ratio of a country to manage its debts in order to provide a rational leverage to economic progress as well as to repay the mortgage debt (2009-2010 European cases such as Greece, Spain and Portugal). Surprisingly most of the countries and companies of the world will always protect all of its debts by way of hedging or reinsurance Credit Default Swap is similar, but with high risk and a significant financial cost that is often peddled by the Global Investment Banking. Though the risk itself basically can not be "protected" safe with a variety of swap and hedging of economic turmoil because of the economic cycle by natural forces.
      
          
With economic indicators, economists are trying to make economic predictions of monthly, quarterly, annual and quarterly in the form of the treatise "Economic Outlook" to provide an overview of economic prospects for the government and employers in determining the range of strategic planning in government economic policy and the policy of the company's business to a variety of economic data macros that have been predicted. But the main problem is that often the government economists and economic analysts can not give an exact prediction with a variety of econometric calculations in the field of monetary and fiscal policies, so that each quarter to years with a heavy heart had to revise its economic predictions to be adjusted (adjustment) with the real conditions of macro-economic . This is caused by the use of various econometric formulas that are linear and one dimensional to predict the dimension of human economic activity is more complex (dimensions 1-3) and assisted the science of statistics (static / unmovable) to predict the range dynamics (movable) from various matrices and combinations physical, mental, expectations, achievements, spirit, appetite and other psychological factors of a number of hundreds of millions and even billions of human beings consumers and producers in a country and the world.

           
Economics only understand about how to make profit and grow up every time the prospects and opportunities, whereas if the decline is a loss, uncertainty and even the risks that need to be avoided. Though the rise and fall conditions and economic growth is a natural form of human beings activities such as day and night, waking-sleep, healthy-sick, happy-sad, success-failure, including the advantages and disadvantages. This is what makes the human economy often do not understand the supernatural and the natural effect of various economic activities. That's why economists and business people need to know more about the strains and fluctuations bioritmik (already widely used by sports science, medicine, psychology) to avoid the decline of the economic cycle by means of preventive to anticipated even to avoid the risk of loss, failure and bankruptcy. The method is a natural bio-economy preventive (prevention) and early warning system for economic and business can avoid the risk of loss, market risk, interest rate risk, inflation risk, the risk of fluctuation in currency values, the risk of fuel price increases, prices of raw materials and ingredients helper, default risk, competition risk, the risk of changing tastes and needs of consumers and other risks that could make the company at risk of harm, risk demand workers' rights and bankruptcy risk.



Let see Monthly and Weekly Forecast 
on  Forex, World Indexes and 
Commodities Market

Managing Your Funds with High Return Low Risk

Contact :
Edmond F. La'lang
Email  :   edmond.lalang@gmail.com
Telp.    :  +62031-3538606
HP         :   +62081-553080521 
Linkedin : 
http://www.linkedin.com/home?trk=hb_tab_home_top
Facebook : Edmond F. La'lang     https://www.facebook.com/