4 Most Popular Technical Analysis Indicators In Trading

Learning Investment - Indicators in Technical Analysis is a mathematical formula that serves to determine how market conditions and also to help provide buy and sell signals. Today there are hundreds or even thousands of indicators that have been made. Each indicator has a character and how to use each one. The following article will discuss four different indicators Technical Analysis is the most popular. Also discussed how to use them.

1. MOVING AVERAGE

Can not be sued again, Moving Average (commonly abbreviated MA) is an indicator of a million people for a trader. Feel free to ask any trader, would never use or at least know Moving Average. Understandably, this indicator is the most modest compared to other indicators of Technical Analysis. This indicator calculates the average price movement of a stock within a period of time, eg, within 50 days, or often called MA50. How to use this indicator is to look at the price position compared to the MA50. If the stock price crosses MA50 upwards is considered a buy signal. While on the contrary, if the stock price crosses MA50 downward considered a sell signal.

2. RELATIVE STRENGTH INDEX (RSI)

Relative Strength Index (RSI) is used to calculate the ratio between the attraction increases and decreases in the price, value ranges from 0-100. With RSI you can know whether a price is overbought or oversold. In principle, the use of RSI is very easy. If the RSI-value is very high (above 70) means that the market is overbought (oversold), so there is potential to fall, it's time to sell. Conversely, if the RSI-value is very low (below 30) means the market is oversold (oversold), so there is the potential to rise, it's time to buy.

3. stochastic

Stochastic developed by George C. Lane in the late 1950s. Stochastic is an indicator that shows the location of the last closing price compared with the price range lows / highs during a specific time period. There are three types of Stochastic Oscillators: Fast, Slow, and Full. Usually there are two lines in the Stochastic, the% K and% D. Buy and sell signals can be seen from the% K and% D. If the% K% D cut up, means a buy signal. Meanwhile, when the% K% D cut down means a sell signal.

4. Moving Average Convergence Divergence (MACD)

Moving Average Convergence / Divergence (MACD) is a very useful indicator for a trader. This indicator serves to indicate the trend is going and also can provide buy and sell signals. In the MACD two lines that you will encounter, namely the MACD Line and the Signal Line. If the value of MACD is positive (above zero), means that the market is bullish, it is recommended to buy. Meanwhile, if the value of MACD is negative (below zero), means that the market is bearish, selling recommended.

See Also New Robot Trading

4 plagues most popular indicators of Technical Analysis. Selection of the indicators are based on Google search rankings. The most popular are usually also the most widely used by traders. But this indicator is not necessarily suitable for you. So you should try it yourself and determine which are suitable for trading.

Read More

3:48:00 PM | 0 Comments

Introducing New Futuristic Robot Trading

If you are a fan of science fiction movies, probably never watch a film about humanity against a robot, for example Terminator. No need to fantasize, as real traders every day against the robot. Yes, not one. Now trading robot is the latest trend in the financial world. World trade is currently dominated by robots with artificial intelligence. It is not separated from the development of increasingly sophisticated technology. This article will discuss the history of the commencement of trading robots and how we need to react to it.

WHAT IS A ROBOT TRADING?

Trading robot is actually a form of automated trading (automated trading). Trade transactions carried out fully automatically by the software and based programming algorithm (often abbreviated as algo). The software works by itself and humans only change program parameters. Never imagined such a trading robot in science fiction, but the tangible trading robot software that resides on a server (high performance computers). So trader future time is a collection of servers that run automated trading.

Robot trading or automated trading is often referred to as algorithmic trading. Generally any trading robot has its own strategy and algorithm, which is made by the manufacturer. Strategy and algorithm is called blackbox, referring to the confidential nature. So that a trading robot is often called blackbox trading. Every large institution that plays in the financial markets has its blackbox respectively, ie Chameleon (developed by BNP Paribas), Stealth (developed by Deutsche Bank), Sniper and Guerilla (developed by Credit Suisse).

Retail trader was now beginning to use trading robots. For example, which is rampant carried out by stock traders with online trading software respectively. Or trader forex, commodities and indices with the Expert Advisor (EA) in MetaTrader.

 DEVELOPMENT OF ROBOT TRADING

History of automated trading in financial markets began in the 1970s when large traders were able to perform automated trading contracts on the Chicago Mercantile Exchange. The next step was made in 1999 when the internet company created the first retail forex software dedicated to the individual, which gives traders the means to buy and sell currencies in the forex market directly.

Now trading robot could receive a message from the market and the algorithm can identify market opportunities, make buying decisions to buy or sell and process it in a matter of just a millisecond. So even before you get a chance to read the news, trading robots already stepped in the market.

The development of trading robots use very quickly. One third of all stock trading European Union and the United States in 2006 performed by robot trading. Only in the intervening three years, in 2009 the use of trading robots to be about 60-70% of the total trading volume in the US. According to the data, trading robots are now used in 80% more than financial trading transactions, ranging from stocks, forex, commodities, futures and so on. All the major players, such as banks, investment funds, and financial institutions are already using the robot for trading. Arguably the only type of trading is still done manually by traders and retail investors.

In Indonesia too, the trend of using trading robots are expected to be more widespread, along with the increasing use of online trading software.

See also 7 Employee Mindset That Ruins Trading

EXCESS TRADING ROBOT

There are several advantages of use of robot trading:

1. The most important advantage of trading robots is the total elimination of the psychological elements involved in trading. So basically expected trading robot can eliminate human error (human error).

2. The second advantage, is the volume of transactions in large amounts that can be created and sustained. Trading robot can perform continuous transactions in all markets, to apply the same algorithm over and over again, without pause.

3. The third advantage is speed. Trading robot is able to execute the transaction very quickly. If the analogy like the electron velocity. When I first introduced trading robots, the speed factor into excess. But as more and more users trading robots, the speed factor is no longer a major advantage.

IMPACT OF THE USE OF ROBOT TRADING

The use of a trading robot created a trade with the characteristic that high frequency trading (High Frequency Trading or HFT). Robot trading transact large volumes of continuously at any time. HFT is generally just looking for a small profit, but in large volumes.

Due to the volume of trading done very big, when an error occurs in a transaction that could be devastating. For example, there are two fatal cases in the use of automated trading:

1. Flash Crash. On May 6, 2010, the US stock market experienced a sharp decline. The Dow Jones Industrial Average fell 9% or 1,000 points in just minutes.

2. Knight Capital. On August 1, 2012, Knight Capital Group's proprietary algorithm cause chaos in the stock market. As a result, Knight Capital lose up to four times its net profit in 2011.

DO WE NEED TO USE THE ROBOT TRADING?

In March 2014, Virtu Financial, an HFT firm, reported that during the five years of 1277 managed to do profitable trading day of 1278. So Virtu only loss in a single day in 5 years. Claims given by Virtu may indicate that the trading robots can be profitable.

But not all trading robots can be profitable. So that could be a profitable trading robot must have two conditions: 1. Algorithm great. 2 servers were very fast.

As a retail trader we do not have these two conditions. The servers were quickly very expensive. The algorithm is greater than the property of the institution is also difficult to make. Necessary intellectual abilities and very high costs for research in making the algorithm. Do not compared proprietary algorithm that large institutions like the mock trading robot that is distributed for free or sold cheap on the internet. If you like it, may actually end up making losses trader.

In my opinion, although the trading robots increasingly widespread, but basically everything is an extension of human emotions. Human psychology still plays a major role in the market. And it makes the market psychology is not easily guessed even by the most sophisticated algorithms. So there is always a chance for us, traders dinosaurs became extinct, which is still trading manually to take advantage of the market.

Read More

2:38:00 PM | 0 Comments

7 Employee Mindset That Ruin Trading

Learning Investment - Before becoming a trader, whether you are an employee? I'm sure, a lot of stock traders, forex, or gold which had been an employee. In fact there are already many years into a new employee becomes trader. There is also a new after retirement became a trader. For so many years, namely those that mindset as the employee settles in the subconscious. The mindset that ultimately unconsciously carried away when trading and can ruin your trading.

Being a trader and employees are different things. In fact I said the difference is like the earth and sky. Without realizing it, they are departing from the world of employees bringing their ways of thinking when trading. This is dangerous, because the mindset of employees would not be suitable for trading.

Here are some of the mindset of employees who could ruin trading:

1. Must work every day

Employees must sign in to work every day, from Monday to Friday suitable office hours. The more diligent employee, meaning that the company is increasingly valued. Trader that originated from employees often feel more diligent means greater trading opportunities to earn money. This is wrong. In trading, the amount of money generated is not directly proportional to the amount of trading done. Instead more and more trading (overtrading) trading generally more losses. What is important is not the quantity of trading, but the quality of trading.

2. Always get paid on a regular basis

Being employee was delish is get a paycheck every month, as long as not sacked. There is no certainty to get the money periodically. Many traders who came from employees so anxious to get the money at any time. He "requires" themselves in order to profit each time. Usually traders who insist so actually the opposite obtained. In fact, often loss. Being a trader, you should be aware that we may not be able to profit at any time. Being a trader, there's time did not get the money, even a loss. Especially on the local stock trader who could only profit in one direction. If the stock markets are bearish, you want to get a profit trading insistent usually even often lose.

3. Being in the comfort zone

Being employee it means to be in a comfort zone at any time, as long as the company you work for is still healthy. While a trader is different, we are always in uncertainty any time. The market is always fluctuating and unpredictable. People who have long become employees when a trader usually shock, severe stress to disrupt trading.

4. If one got the first warning letters

Ease into the employee is when one, you get a warning letter first. The Company will not play fired. But if any trader, directly cut capital. Not a warning letter, but a letter of notification from the broker if the capital is already depleted alias margin call. So make a mistake as a trader it is expensive. We ourselves have to punish ourselves with cut loss. If waiting for the market to punish, experience a margin call.

5. No responsibility when making decisions

When being an employee, you do not have to be directly responsible for all the decisions made by a company. If the turnover of the company down, we can say that less promotional marketing section, or part of the research new products less desirable. While a trader means that we are responsible for all the decisions we make. So we must be careful always on our trading decisions. Each trading decisions are our future as a trader.

6. Satisfied with the skills possessed

Become employees already clear of his job description. Including the necessary skills. You are not required to have new skills beyond the job description. But in the trading world is different. As a trader you have to master a variety of different skills. Technical Analysis For instance, cash management, risk management, trading psychology. Not to mention the knowledge of the market. The market is always changing, and dynamic. In trading 2 + 2 does not always equal to 4. If you do not want to add a science, it's unlikely you succeed as a trader.

7. Hard work always paid off

Companies usually reward the hard working employees. Increasingly work hard, the easier it got a promotion and salary increase rapidly. While a trader is not necessarily. We are already half-dead analysis, days observing the chart until pedes eye, the result can be different from those expected, still a loss. Being a trader that's no guarantee that the hard work definitely getting great results as well. Many traders who felt he was doing the analysis with hard, he must make a profit commensurate with that done. That means he ngarep big trading profits, so that when the analysis is wrong he insisted remain with his analysis. As a result of disasters. Even more swollen loss.

Again, it's become a different trader hundred eighty degrees compared to being an employee. Which had previously been employees, may have the right mindset about trading and does not carry the mindset of employees in trading.

Read More

1:26:00 PM | 0 Comments

Knowing Types Of Stocks: Common Stocks and Preferred Stocks

After learning about the notion of stock, now we will discuss about the types of stocks. Apparently not all of the same stock. There are two types of shares, namely Common Stock and Preferred Stock. Any difference between the two types of shares? Read this article further.

Commonly known to the public stock is common stock, but there are actually two types of shares, namely:

COMMON STOCK

Ordinary shares are shares that put the most recent owner of the distribution of dividends and rights to assets of the company if it liquidated. This is due to the common stock owners do not have special privileges. The owners of ordinary shares will not obtain payment of dividends during the company does not earn a profit. Each shareholder has voting rights in the general meeting of shareholders / GMS with the provisions of one share one vote. Holders of ordinary shares have limited responsibilities to the claims of other parties for the proportion of shares and have the right to transfer its ownership to another person.

PREFERRED STOCK

Preferred stocks are stocks that have the characteristics of a combination of bonds and common stock, because it can generate a fixed income (such as interest on bonds). This is due to get the right distribution of dividends regularly. There are three characteristics of preferred stock that make it similar to bonds: no claim on earnings and assets previously, dividends remain for the duration of the shares, and has the right to redeem and can be exchanged for common shares.

Read Also What is IPO?

The advantages of preferred stock is safer than common shares. Because the preferred shares have the right to claim against the company's assets and the distribution of dividends in advance, however the preferred stock has a weakness that is difficult for bought and sold like common stock, because the numbers are small.

How to Differentiate Common Shares and Preferred Shares

In the Indonesia Stock Exchange, is easy to differentiate between Common Shares and Preferred Shares. The trick view stock code. Stock code is always comprises four letters. If there is an additional one letter P means that the shares are Preferred Stock.

Read More

11:32:00 AM | 0 Comments

What Is IPO?

Learning Investment - In various media, of course you often hear about an IPO or Initial Public Offering. Actually, what the terms of the IPO in the stock market? What is its purpose? All will be answered in this article.

Definition of IPO (Initial Public Offering)

In the Indonesian language, referred to as the IPO Initial Public Offering. Thus the IPO is a company's stock is first released to be offered or sold to the public / public. Therefore, companies that did IPOs often called being "GO PUBLIC".

See also Go Public Processing

Interest IPO

Why would a company want to take off or sell its shares to the public / community? There are a variety of reasons companies do IPOs, which are:

1. Get a low-cost funds. Companies can obtain funds from various sources such as issuing bonds, borrowing money from banks. But both methods have an obligation, that pay interest. Meanwhile, if the company off the stock to receive funds, the company is not burdened with interest.

2. The financial performance of the company better. By getting the funding cost, the company could pay the debt and improve its financial reports quickly.

3. The potential for faster growth. Companies could use the funds internat for expansion, for example, to open a branch. But if it has a low cost funding, could expand more quickly and in the long term potential of the company's growth could be even greater.

4. Improving the image of the company. The public company will always be highlighted media. When able to be managed well, the media spotlight could be an indirect marketing tool for the company.

5. Increase the value of the company as a whole. By going public, the company's value is much likely to rise in future due to higher stock prices. If the company is perceived to have a good performance by investors, the stock has also increased opportunities for advancement.

Generally, shares released to the public only a fraction of the total number of shares of the company. For example PT A shares to the public release of 10% of the total shares. Number of shares released to the public is 1 million pieces. Initial share price of Rp 10,000 per share. Then the overall value of the company is: (100/10) x share price x number of shares = (100/10) x Rp 10,000 x 1,000,000 = 100 billion

For example, the stock price after the IPO increased to Rp 20,000. Then the overall value of the company now is: (100/10) x share price x number of shares = (100/10) x Rp 20,000 x 1,000,000 = 200 billion. So the increase in the company's stock price after the IPO, will also enhance the company's overall value.

Read More

11:23:00 AM | 0 Comments

Go Public Processing

Learning Investment - Go Public or often called the Public Offering is offering activities undertaken by the company to the public (public). By offering shares to the public, then the company will be listed on the stock exchange becomes a public company / open.

There are several processes that must be passed by the company to go public, among others:

1. Preparation

This stage is the initial stage in order to prepare everything related to the process of going public. At the earliest stage, companies need to conduct the General Meeting of Shareholders (AGM) for approval of the shareholders in order to go public. After the approval, the company subsequently appoint underwriters and other agencies to help the process of going public.

• Underwriter (Lead Underwriter). Is the most involvement in helping the company in order to issue shares. Activities undertaken underwriters include: preparing various documents, helped prepare the prospectus, and to guarantee the issuance of shares of the company.

• Public Accountant (Independent Auditor). Assigned to conduct an audit or examination of the company's financial statements.

• Assessors to assess the company's fixed assets and determining the fair value of fixed assets.

• Legal Counsel to give a legal opinion (legal opinion).

• Notary to make the deeds of amendment, deed of agreements in the framework of the public offering and the minutes-meeting minutes.

2. Stage Filing of Registration Statement

At this stage, companies submit an application to the relevant institutions (the Financial Services Authority or FSA)

3. Stage Stock Quotes

This stage is the main stage, because at this time the issuer offered shares to the public (public offering or IPO in the primary market). Investors can buy shares through agents designated sellers. Keep in mind also that not all desires are met investors in buying shares of companies that will go public. For example, shares released to the primary market of 100 million shares while investors who want to buy the entire amount to 500 million shares. Then there are oversubscribed (oversubscribed). To be fair it is usually done allotment (allotment).

4. Phase Recording Stock Exchange

After the completion of the sale of shares in the primary market, then these shares were listed on the Indonesia Stock Exchange. Investors who did not get on the primary market, can be purchased on the secondary market in the Indonesia Stock Exchange.

Read More

11:16:00 AM | 0 Comments

Reguler Market, Negotiation Market and Cash Market In Stock Exchange

Learning Investment - The secondary market is a continuation of the primary market after the company's release of its shares in an IPO. Once listed on the stock exchange, which means that the company's shares can be freely traded by the public, according to the number of supply and demand. Buying and selling shares in the secondary market was held at the Indonesian Stock Exchange. You can buy shares through a securities broker or, for example, using software online stock trading. Now, the secondary market is divided into three, namely the Regular Market and Cash Market Negotiation.

• Regular Market. Shares in the Regular Market traded in the trading unit "lot", where 1 lot now is 100 sheets. Stock transaction bargaining mechanisms which take place continuously during the trading period. So, arguably the stock price could change continuously every time.

• Negotiated Market. Almost similar to the way trading on the regular market, no bargaining as well but did not do in the stock exchange market. Price bargaining is conducted privately, but remains under the supervision of the exchange. Market negotiations usually chosen when the number of shares the investor does not even 1 lot (100 shares). The results of the negotiations to be agreed by the exchange.

• Cash Market. Exactly the same as on the regular market, which differ only payment system. On the regular market transaction settlement is T + 3 (three days after the transaction), the payment system in the cash market T + 0 be done the same day. Cash Market are available to complete failure of the Exchange members to fulfill their obligations in the Regular Market and Negotiated Market. For example on short selling transactions.

Read More

10:38:00 AM | 0 Comments

Be Aware...!The amount of income is not the Most Important In Investation

Many people think that the most important is to accumulate wealth is to have a great income. No doubt, that have a large income can accelerate your path becomes richer. But the statement is only half true. Do not believe, look at the picture below. There are some photos of world famous celebrities. Mike Tyson, Lindsay Lohan, Michael Jackson, Pamela Anderson, Toni Braxton, Brendan Fraser, Nicholas Cage and 50 Cent. They are all well known, the media highlighted, large income, luxury car ride, a world traveler, or had a super beautiful house. It's all common life we ​​see on celebrities. What kind of life is also the coveted everyone. But did you know that the world celebrities are insolvent or bankrupt ever in his life just when at the peak of fame?

Perhaps never crossed the minds of these celebrities that all the wealth, fame, and success they suddenly disappear. Life changed 180 degrees. Impoverished, bankrupt, probably never imagined the world's top celebrities of the time were at the height of his fame first (The Richest sources, TMZ, etc.)

1. Mike Tyson

The fate of the former world heavyweight boxing champion, Mike Tyson, very tragic. To the extent that Tyson suffered life without owning a home. This caused its own wild behavior. Edged extinguished his boxing career after languishing in jail for 3 years 1992-1995. Tyson has been proven to rape a woman at that time. Although he had dropped some boxing match, but it was not enough to restore Tyson kejayaannya.Bahkan period ensnared in drug cases. Finally in 2006 he announced his retirement from boxing. In 2009 Tyson getting worse when his daughter died. Tyson life of billionaire turned into a man who had no home.

2. Lindsay Lohan

Hollywood celebrities have suffered bad luck had deserted after the start of work. Never get an offer to play a movie, Lindsay Lohan actually stay alive with high standards. Even Lohan had threatened to jail after getting into fights at one of the nightclubs. Not only that, Lohan also has not paid taxes for 3 years. Total taxes borne at the time was USD 233 thousand or equivalent to Rp 2.6 billion. The situation was made Lohan accounts frozen by the bank until it went bankrupt because they have to take care of several cases including accidents that occurred in 2009 ago.

3. Michael Jackson

Bankruptcy is also experienced by the world's top singers, Michael Jackson. With large expenditures and love to shop, make him to have a debt of US $ 500 million to several different lenders. Debt makes the coffers of wealth singer who was nicknamed King of Pop continues to shrink. Wah property worth millions of dollars, Neverland, and all its contents had not hers anymore. Jackson died suddenly in 2009. The world's death became public spotlight. According to The Daily Telegraph, Jackson spent more than $ 20 million to $ 30 million greater than its revenues each year. At the end of his life, having died suddenly in 2009, Michael Jackson left $ 285 million in the form of unpaid debts.

4. Pamela Anderson

Hot movie star who once played in the TV series Baywatch is now destitute after his property was dropped drained just to pay the debt. Debt financing was coming from his house which nevertheless arrears stand being deceived by the contractor. Finally, he must pay $ 1.1 million in 2012 ago. Even recently, Anderson reportedly forced to sell her house worth US 7.75 million to cover bills mounting debts.

5. Toni Braxton

2. You might know him through the song famous Unbreak My Heart. His life begins to fall when he was not paid by a record company in 1997. Coupled debts to the cost of living in the style of celebrities made it to declare bankruptcy. Total debt to repay reaches the amount of US $ 50 million, or around 600 billion rupiah. Plus, in 2010, Toni Braxton, who also won six Grammy Awards was diagnosed with lupus. Wealth which collects try again became useless due to run out to finance his treatment.

6. Brendan Fraser

Extravagant lifestyle is the reason for bankruptcy this Hollywood movie star. Monthly income of US $ 75 thousand which diraupnya certainly could not cover the cost of living perlentenya which reached US $ 200 thousand. This is the one that is slowly bringing his savings account into the critical zone. In addition, the back injury that happened make Fraser spending increase. Inability to function normally makes it no longer "widely used". As a result, he was forced to liquidate his assets worth US $ 25 million just to pay the bills.

7. Nicolas Cage

Super luxurious lifestyle makes Nicolas Cage is now bankrupt of success first. The statement was delivered ex-manager business, which Samuel Levin, who sued Cage, because of advising that he was wrong to invest. Levin reveals Cage once bought 9 pieces Rolls Royce and three luxury homes, a total of all 25 million pounds ($ 483 billion). Then Oscar winner also spent 1,2juta pounds more to buy a motorcycle and 20 million pounds to buy a flat. Even Cage's life is synonymous with the spree Spree. Noted, he has at least 15 homes around the world, 4 boats, jet boats, and the island is worth 4.5 million pounds, equivalent to USD 86.9 billion. His lifestyle is what ultimately makes Cage bankrupt. He announced that it has officially bankrupt in October 2009. In fact he was still heavily indebted tens of billions in American Tax Directorate.

8. 50 Cent

50Cent rapper, whose real name is Curtis Jackson, filed for bankruptcy in 2015. He filed a claim for bankruptcy after losing a lawsuit from a woman named Lastonia Leviston, the sex videos he posted on the internet. Search case itself anyway. 50 Cent claimed to have a house with the following facilities: Nightclubs own private (home), 21 bedrooms, 24 bathrooms, a movie theater, basketball court, swimming pool, Grotto (It is not clear what that means "cave" in this case, but it is generally the word is used to refer to a cave). Everything in the pants area of ​​17 hectares. Jackson estimates that assets worth between $ 10 million to $ 50 million. But debt is also equal. That is as the name implies, the wealth of 50 Cent actually stayed 50 cents.

List of artists who broke the world other than the above there are many more. Most of them into bankruptcy because of legal cases, the disease, but mainly because LIFESTYLE WASTES, so that wind up in debt bondage tremendous.

The above facts prove that the amount of income is not the most important. Even more important is being able to manage any income they have. Ordinary income, coupled origin extravagant lifestyle, want to save, and to invest funds for the future will generate prosperity until later old age.

Read More

10:26:00 AM | 0 Comments

This Is The Letter From Warren Buffet For Berkshire Stockholder

Learning Investment09 - New York, Warren Buffett re-released annual letter to shareholders of Berkshire Hathaway on Saturday morning yesterday. This document is always issued annually and document the most widely read because its contents have extensive knowledge, funny and sometimes controversial.

This is underlined by the seven things that Warren Buffett in the letter, as quoted from Yahoo Finance, Sunday (28/02/2016):

1. Berkshire had a good performance in 2015, despite the stock market is not so good

In 2015 yesterday, the stock market is fairly flat industry. Berkshire shares fell about 12 percent and is the worst decline since 2008.

But Buffett focuses on the profit earned by the company in 2015 and which grew 6.4 percent, the benchmark he always used.

Earnings were inscribed by the company below 13 percent, the average income that is inscribed since the recession but exceed 1.4 percent returns posted by the S & P 500 index with dividends into account.

Buffett reiterated that Berkshire will buy back shares if the value is trading below book value of 1.2 times. Currently the value of Berkshire shares trade at about 1.3 times book value.

Buffett's annual letter also discussed business Berkshire menggurita in America and increasingly global. An example is Berkshire's insurance businesses earn US $ 4.9 billion in 2015, down from US $ 5.2 billion in 2014.

But there are additional substantial funding to be invested by Berkshire-owned insurance company. This is why the insurance business remains lucrative as farm profits for Berkshire shareholders.

In 2015 also, the other Berkshire businesses such as energy, railways, financial products, manufacturing and retail are relatively profitable compared to previous years.

2. US presidential candidate wrong about the economy

Do not expect to find a discussion of the world's oil, China, the exchange value of money, as well as monetary policy in Buffet's letter. Buffet to emphasize that the domestic economy is strong, despite the politicians think otherwise. This year, Buffett suggests that investors will still find plenty of opportunities for financial printing in a variety of industries.

"This is an election year, candidates will not stop the problem of the country. As a result of the negative comments they made, the American citizens believe that their offspring would not be able to prosper as they once were. The thought is certainly a big one. The babies born in the United States today are the descendants of the lucky ones in history, "he wrote.

3. Climate change is a challenge

He said that the insurance business will not be affected by climate change in the near future. However, he believes that the threat of climate change to the environment must be addressed with concrete action.

4. The terrorist attacks pose a major threat

Buffet can not deny that Berkshire faces major challenges are also faced by other residents of the United States. The threat of terrorist attacks either nuclear, biological and chemical weapons, as well as cyber attacks, becoming the biggest danger facing.

5. Productivity is good for society, but costly

Last year, Buffett specifically discuss the solution of the unemployment-related change in the paradigm of productivity. Currently, policies to improve labor-intensive industries are considered wise.

6. Buffet appreciate the technological advances

Although appreciate the technological advances in helping everyday life, but the buffets were not ready to play Tinder applications.

7. Meeting of shareholders of Berkshire will be broadcast live by Yahoo Finance

As has been previously announced, Yahoo Finance will host the Berkshire shareholders meeting on April 30 this year. "Charlie and I decided to enter the 21st century of this year's annual meeting will be broadcast live via webcast." lid.

Read More

10:27:00 PM | 0 Comments

The Highest Science In Investment Is Patience

Patience is absolutely necessary to succeed in life, because a lot of things that result naturally depends on the timing. Including stock investment. You can not just reap the results of a stock investment. Results maximum equity investments need time to grow and mature. "Successful investing," Warren Buffett once said, "It takes time, discipline and patience." Arguably the patient is a high-level science required each investor to be successful stock investing. Why is that? Read this article to find out.

If only all the words of investor Buffett. In fact, too many people are looking for a shortcut to successful investing, so instead trapped in investment bulging, or suffer losses due to buying stocks that go up when fried.

Patience It Sciences High Level

Being patient in the modern world is not easy. Because of what? We live in a world that worships speed. Smartphone slow a little, furious. Chat is not immediately sent, annoyed. Email was not immediately returned, enraged. In everyday life are also the same. Cars slow down, already crowded diklakson. It is not easy to be patient, including the patient into a stock investor. Perhaps the patience in the world is a rare creature :)

See also Fundmental Analysis

Patience That school is a Lifetime

Patience is required as long as we invest. If we invest a lifetime, it needs to wait that long. Once we are impatient, then we will fall made a mistake in the decision to invest in shares.

Patience was The training Every Time

In the modern world as it is now a lot of temptation to impatience. The rise of information and social media also makes the investment world full of bustle. If I may say, exactly NOISY. Traders and investors mutually comments about the stock. Media contains news that dramatic. Expert or experts who claim to provide an analysis of its own version. Anyway rowdy like the market. Eh, the stock market is indeed his name ya :) Everything can be a temptation that could make us forget to be patient. Therefore, we must exercise patience at all times.

Patience It often sudden exams

Trials in stock investments was encountered when the market is in a period of crisis. There, our patience was really tested. Do we remain faithful to the discipline of investing according to plan or not. And if the crisis is always sudden. We do not know exactly when it happened, how big the impact or ending.

Graduation of Patience Is Still Long

Many people do not want to wait, for one main reason: the results are not immediately visible. It took a while just to enjoy the end result. Investment in order to get the most, however, takes a considerable time. But the good news is the result of patience is sweet :)

Read More

5:28:00 PM | 0 Comments

Fundamental Analysis

Fundamental analysis is an analytical technique that is commonly used by investors to help share purchase decisions. This article will discuss fundamental analysis with a thorough enough. Starting from the definition, function, and a variety of analytical techniques were used to find the best stocks for investment. By reading this article, you understand about the use of Fundamental Analysis in general.

WHAT IS FUNDAMENTAL ANALYSIS?

Fundamental Analysis or Fundamental Analysis is an analytical technique that takes into account various factors, such as the performance of the company, business competition analysis, industry analysis, analysis of macro-economic and micro-markets. From here it can be seen whether the company is healthy or not. From checking the investor can find out which companies are in good condition and can be selected for investment.

 WHO IS USING FUNDAMENTAL ANALYSIS?

Fundamental analysis is generally the investors, especially long-term stock investors.

ANALYSIS FUNDAMENTAL ANALYSIS CAN ANYTHING?

Fundamental analysis is not limited to stocks, can also be used for forex, gold. The trick was different. But usually when people call Fundamental analysis usually refers to the stock. Investors who use pure fundamental aspect in determining investment decisions called the Fundamentalist.

WHAT NEEDED TO FUNDAMENTAL ANALYSIS CAN DO?

Fundamenal analysis requires the data to be analyzed. Data can be obtained from a variety of news, economic data and financial reports released by issuers listed on the Indonesia Stock Exchange.

• News of Companies can be obtained from newspapers, electronic media

• Economic data can be obtained from the Central Bureau of Statistics releases or Bank Indonesia.

• Data on the company's financial report released by listed companies every three months (quarterly). Can be found on the company's website or in the respective Indonesia Stock Exchange website

Actually we do not have to bother looking for a variety of news and financial reports of companies that broker where you open stock accounts provide it. For example, if you open an account through JurusCUAN shares, then you just open the software online stock trading HOTS and all available there.

See Also January Effect In Stock Market

HOW TO MAKE FUNDAMENTAL ANALYSIS?

In the Fundamental Analysis we can do a top-down analysis from macro economic conditions of the country until conditions in micro enterprise.

• Macro analysis to determine the condition of the country's economy as a whole. We need to see whether the economy is still growing, inflation is threatening growth, and so on. The country's economy is growing will encourage the growth of these companies.

• Sectoral Analysis (Industry) to determine the condition of each industry. We need to know what most industry sectors have a chance to grow.

• Micro analysis to determine the condition of the company. Which can be done by measuring the financial health of the company, seen from the financial statements that is issued.

FUNCTION IS FUNDAMENTAL ANALYSIS?

Fundamental analysis has several uses in the equity investment, among others:

1. Detect the right moment to enter or exit the stock market

By knowing how the country's economic conditions, we can know when we have to invest.

2. Help pick a good stock for investment

With the industry analysis and corporate finance we can avoid companies that have less obvious fundamental

3. Knowing the fair price of a stock

Fundamental analysis can be used to determine the valuation of shares, ie how many shares it worth the nominal rupiah appreciated. There are many methods that can be used to calculate stock valuations, for example:

• Methods PER (Price Earning Ratio)

• Methods PBV (Price to Book Value Ratio)

• Methods of DDM (Dividend Discounted Model)

• Discounted Cash Flow method (DCF)

• Method of Free Cash Flow (FCF)

WHAT IS A FINANCIAL RATIO?

To facilitate the assessment of the financial statements, analysts use a variety of financial ratios. Fortunately it's a lot of media and business newspapers also provide the data these ratios. In addition you can also find these ratios in the online trading platform, or from the Internet. Examples of commonly used financial ratios are:

• EPS (Earning Per Share), or earnings per share

• PER (Price Earning Ratio) or the ratio of stock price than the company's profit

• PBV (Price to Book Value Ratio) or the ratio of stock price compared to the accounting value of the company

• ROE (Return On Equity), or the ratio of profit than the company's capital

• DER (Debt Equity Ratio) or the company's debt ratio than the capital

• and many other ratios

These financial ratios are also available in HOTS.

HOW TO DO ANALYSIS OF FINANCIAL STATEMENTS?

The trick is to compare:

• Comparing the performance of a company over a few periods. This way you will be able to know the trend of the company's performance, whether growing or not.

• Comparing a company with another company in the same sector. This way you will be able to choose the best company in the sector.

Fortunately both methods can be easily done using HOTS

Read More

4:12:00 PM | 0 Comments

January Effect In The Stock Market

Every beginning of the year, investors generally expect profits overflow from the January effect on the stock market. What the January Effect (Effect January)? What caused it? Is January Effect occurs also in the local stock market, or the IDX (Indonesia Stock Exchange)? Check out the answers here

WHAT IS JANUARY EFFECT?

January Effect (Effect January) is a trust in which stock prices tend to rise in January. The calendar effect creates an opportunity for stock investors to buy shares in a lower price and sell it before January after its share price.

 WHAT IS THE CAUSE OF JANUARY EFFECT?

January effect was first observed around 1942 by a banker named Sidney B. Wachtel. He noted that since 1925, there was an increase in the share price in January, mainly in small cap stocks. There are several theories that could explain the January Effect. The most common theory explaining this phenomenon is that individual investors tend to sell shares to avoid taxes at the end of the year. Then they buy back the shares in January, its price increased. Another theory says the cause is mostly individual investors who work receive a year-end bonus, then the bonus to buy shares in January.

JANUARY EFFECT IN THE US STOCK MARKET

The figure below shows the returns in the US stock market in January from the year 1951 to 2011. If seen, until the 1980s phenomenon is still quite effective January Effect. But once it started insignificant effect. This could be because many people are using a tax sheltered investment plan, so no need to sell shares at the end of the year.

JANUARY EFFECT IN INDONESIA STOCK MARKET

Is January Effect occurs in the Indonesian stock market? Based on data for 1995-2015 (21 years), JCI rose as much as 14 times, and down seven times in January. So there are about 66.6% probability of happening January Effect in the Indonesian stock market. This probability is smaller when compared to the possibility of window dressing in the stock market.

However, the data is not a guarantee that the January effect is always happening in the stock market. Keep looking at the fundamentals or chart if you want to take advantage of the likely occurrence of the January effect on the stock market.

Hopefully this article helpful

Read More

3:26:00 PM | 0 Comments

Stock Market Predictions In Year of the Monkey Fire 2016

Wood Goats year 2015 is not very pleasant for stock investors, especially in the second half. JCI in 5523 reached its highest rate in 2015, but then dropped and fluctuated in the range of 4400-4600's. How is the condition of the stock market in the year 2016 Fire Monkey? Do JCI able to rebound or even getting worse? The industrial sector what is the benefit? Shio anything hockey or Ciong in 2015? As an alternative, this time I will give you written about the stock market predictions to be reviewed in terms of Feng Shui.

Welcome Year of the Monkey Fire calendar year 2567. Under the Chinese, the Monkey year will start on February 8, 2016 until January 27, 2017. The Year of the Monkey 2016 is symbolized by two elements - the fire sitting on top of the metal. According to the cycle of birth and destruction, which governs the relationship between the elements, these two elements are not in harmony. Usually a conflict arises, for example in the international world.

The element of fire still appeared in 2016 and is often the driving force behind the stock market. But the metal element which conflicts with the fire resulted in fluctuating market conditions. The negative sentiment may still be going on in the first half of 2016. Meanwhile, in the second half of the next stock market tends to be more conducive. It is estimated that the stock market outlook is not too bright in 2016, especially in the first half, but passable in the next semester.

Character monkey is clever but mischievous. Such is the character of the stock market in the year of the monkey. So you have to be careful, chances are many surprises in the stock market, and the fluctuation is quite high. Who want Cuan in Monkey should be smarter than a Monkey.

Any industries that will perform well in the Monkey?

• Industries with the Metal element will benefit, such as gold, banking, machinery, engineering, computers, cars, and high-tech industries.

• Industries with the Water element will be benefited, for example, the logistics industry, communication, drinks.

• Industries with moderate elements of nature land, for example mineral mining, construction, property, infrastructure

• Wood Industries with its moderate elements, examples include textiles, fashion, consumer products, paper, books, forestry, furniture industry etc.

• Industries with less advantaged Fire element, like the stock market, energy, food

So, who is going to hockey in the Year of the Monkey Fire 2015?

Shio Hap (harmony) with Monkey will get hockey, such as zodiac Dragon and Rat.

While zodiac affected Ciong (conflict) with Monkey will have tribulation, such as Shio Monkey, Snake, Pig and Tiger. The most Ciong is Tiger.

Read More

11:24:00 AM | 0 Comments

SHARE BANKING AND RESTRICTIONS NIM (Net Interest Margin)

On Friday, February 19, 2016 the stock investors were surprised by the sharp decline in stock index closed up -1.69% in 4697. The decline was triggered by the drop in banking shares. BBRI shares fell -4.58% -4.37% BBCA BMRI BBNI -2.61% -6.42%. Suspected decline in banking stocks after the statement of planned restrictions on net interest income margin (Net Interest Margin) of the Financial Services Authority (FSA). What is Net Interest Margin or NIM is it? What is the impact of the limitation or reduction in NIM? What are the prospects of banking stocks next?

WHAT IS NET INTEREST MARGIN (NIM)?

Net Interest Margin (NIM) or Margin Net Interest Income is the ratio between the net interest income to the value of assets distributed as a credit. In principle, the greater the value NIM, the bank is getting better. NIM indicates the level of profitability of a bank. Banks with a larger number NIM means more efficient use of its assets to generate profits. (Quoted from the book Stocks Fundamental Analysis Second Edition)

Banking industry in Indonesia is an industry that is most beneficial when compared to the banking industry of other countries. Banking industry in Indonesia has a return value greater 2-fold compared with banks in the United States. Average Return On Equity (ROE) of Indonesian banks is 18% -25%. While ROE banking companies in the United States only 9%. The magnitude of the Indonesian banking profit was driven by the factor of the magnitude of the Net Interest Margin (NIM).

Figures NIM Indonesia is bigger than the other ASEAN countries, which in 2015 amounted to 4% -5%. Figures NIM Indonesia has actually declined, in the years 2011-2013 the range of about 6%. But still greater when compared to other ASEAN countries. NIM Philippines only reached 3.3 percent, Thailand 2.6 percent, Malaysia 2.3 percent and Singapore 1.5 percent.

FSA plans to reduce the value of NIM to a range of 3% -4% (probably still discourse).

WHAT IMPACT LIMITATION NIM?

The high NIM is indeed a positive impact on the bank's profit, but instead burden the company owes the bank. This means that the cost of debt companies are taking debt in the country to be great. Therefore many companies find funding from abroad are much smaller flowers. But there are risks that the rupiah exchange rate, if the rupiah weakens the burden on companies to pay foreign debt will increase. This resulted in a high cost economy.

By limiting the NIM, in the short term is the bank's profit is likely to decline. But the actual decline in NIM will have more impact in the long run.

• The first is Indonesia's economy will benefit, because it can obtain funds at a lower cost. In the end the company's expansion.

• Secondly, banks will potentially have a larger market share, because it can channel funds which have a lower cost. Companies that previously looking for low-cost funds abroad could potentially turn to local banks.

So far, Indonesia is banking dininabobokkan with the ease of obtaining large profits by NIM. In my opinion, the FSA measure is appropriate. It is time for Indonesian banks to work more efficiently, and to channel more funds for the development of Indonesia.

HOW TO SHARE OUTLOOK FUTURE INDONESIAN BANKS?

I personally was not overly concerned with the future outlook for Indonesian banks (in the context of long term yes). With the decline in NIM, as long as banks are more efficient work will be able to gain a larger market share. BI also cut interest rates and reserve requirement, it is a positive sentiment for the banks to be more daring and more lending. If the first bank to lend a bit with large flowers, small flowers but now credit amount more. Experience, the edges are the same as tho? In addition there are other sources of income that can be extracted by such bank Fee Based Income. There are still many other business potential that can be done bank.

As explained above, the NIM figures Indonesia has decreased during 2011 to 2015. Note the value of the assets and the bank's profit during that period, remains great, right? So the NIM down value is not new for Indonesian banks.

Read More

10:39:00 AM | 0 Comments