Few Tips To Face Risk Management In Trading

Traders who have experienced would be very concerned with risk management. Rick Wright, trader and instructor at Online Trading Academy regards risk management as a 'holy grail' actual trading. Of trading experience, and from a variety of questions and feedback when he taught, he wrote a few tips in using risk management as presented in this article.

Suppose you have a method and a trading strategy that you believe is the 'holy grail' of trading, and at a trading opportunity, you are dealing with market conditions so 'perfect' for the strategy 'holy grail' you. Well, are you going to enter the market at the risk of the entire capital in your trading account? This is where the use of risk management factors proportional force. You must have a handle to implement risk management with a logical and proportional. Here are some tips from Rick Wright that you can consider.

Tip 1: The amount of risk per trade between 0.5% to 2% of the account balance

If the size of your trading account is $ 10,000, then the risk per trade is $ 50 to $ 200. The reason is if it turns out you will experience the loss in a row, you will not be quickly exposed to margin call, and there will still be the next opportunity to make a profit.

Tip 2: The number of trading positions at the same time not more than 4

If a big risk per trade 2% of the account balance, and you use the leverage of 200: 1. With the opening of 40 positions at once, for example, means that you have risked your entire trading account. Even if you are an aggressive trader, trading off as it was very reckless and overly emotional. You are very likely to experience difficulty in managing your trade. It is recommended that at the same time do not open more than 4 positions.

Tip 3: Determine the frequency of trades per day, per week or per month.

Depending on your trading style, it is recommended that you determine the frequency of your trades in a day, week or month. This data will you need when making a journal in the trading plan (trading plan) for evaluation.

Tip 4: Minimize the position size (lot size per trade) when trading against the trend

If you are a trader medium term or swing trader commonly refers to the daily chart to the main trend, but see trading opportunities in the time frame 15 minutes with the opposite trend, you can go with the position size half the size of the lot when you are trading on the main trend. If you use rule 2% of the account for trading on the major trend, you can apply the 1% for the opposite trend.

The reason is simple: You certainly do not expect a big profit to trade contrary to the main trend, so it would be safer if you risk less to anticipate if the trend on the lower time frame reverse. Usually traders use trading off like this when I'm going retracement strong primary trend. Small profit target level, as well as the level of risk.

Tip 5: Determine the amount of risk percentage per day or per week

Your $ 10,000 trading account, the risk per trade 2%, would you open a trading position 20 in a day? Or 20 trading positions in a week? If all of your trading position loss, then you will lose $ 200 x 20 = $ 4,000 or 40% of the total balance of your account.

It is often overlooked when preparing trader trading plan and only realized after some time the loss within two days, three days or a week. Although very relative and depends on your trading strategy, but we recommend that you determine the amount of risk per trade time period, say 5% per day, or 8% per week.

Tip 6: Use trailing stop or sliding stop loss levels while profit

Experienced traders certainly do. From experience 'hurt' them as a result of profit that was clasped to 'fly' away. If you do not constantly monitor the computer screen, you can use the manual way to shift the stop loss level if it is already in profit, at least to a breakeven level. We recommend that you make protection early on profits you've earned.

Source: Rick Wright - lessons.tradingacademy.com

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12:01:00 PM | 0 Comments

Inspirational Step To Be Good Trader

A man and a boy sitting in a wooden house filled with old furniture and dusty. Where the boy bowed his head, looking at a guitar propped his feet were small.

Then the man sat staring at the little boy. He is Jack White, a famous musician on the list of the 100 Greatest Guitarists of All Time magazine Rolling Stone.

Where the boy was his.

From the above excerpts of stories, is a scene from the documentary titled "It Might Get Loud". However an adage we can glean from the story above, from another person or a place that we never imagined possible before.

Here Jack White taught how to play the guitar to his son.

"You have to fight the guitar ..."

"And you have to win."

While the suggestion to become a successful trader ... For trading. For a life in your trading career ... you should be able to fight. And you should be able to win it.

Jack said, "You should be able to fight with guitar". Was all he said before leaving her son. The words "fight" a lesson for children. And perhaps at that moment I would bet my money on the guitar.

In other words, at that time there would be no hope. you can only win. But more likely you will be a lot of defeats. But even so, Jack said, "You have to win". In other words, Fight until you can beat. Of course there will be expectations when you are trying in earnest.

Maybe it will take up to 3 months, 3 years, or even 30 years. While trading is not a shortcut to becoming a millionaire suddenly.

Start with a question "Why?"

Why did you choose to trade? And why did you choose as a trader? As well as what needs to be prepared before the plunge in world trade? Therefore, let's look at some of the categories that can help you to become a successful trader.

1. Mental

Why do you choose the trading world? I hope not to get rich quick. Because if we do, then you will be ridiculed by the market. Where I learned a lot from Jessie Livermore, one of the legendary trader. Which he said the following;

"The game of speculation is the most interesting games in the world. But if you know, it's not a game for people who are ignorant, lazy mentality, people with low emotional balance, or people who dream of getting rich quick. Those I mentioned will eventually die poor. "

Market will give you the opportunity to make a profit for those who are serious. You have been given the ease of doing it from home. Then, use the best possible way ...

2. Knowledge

Knowledge, 2 (two), sorts, Special and General. General knowledge has a width of 3 kilometers and a depth of three centimeters. Specialized knowledge has a width of 3 centimeters, but the depth of 3 kilometers.

As for becoming a professional trader, you are required to have in-depth knowledge of trading. You may read the news and can grasp the general content of the news. However I'm sure you also never found a term you do not understand in it.

Start with one word, or the terms of trading that you do not understand, find the answer through google uncle, blog, website, or hanging out in the trading forum. Do this when you find a word you do not understand.

Trading is not something that you can learn by reading. You need some experience. You'll be surprised where you will often repeat the same mistakes. From here you can learn to control themselves. Until eventually you will get to a point where the knowledge of the market will move.

3. Find yourself

You will surely find a trading strategy that draws from forums, blogs, and so on. Then you try the demo account to eventually use in their daily trading. But sometimes everything does not work as intended. Confidence and experience the creator of such trading strategies may not be transferred to you.

You might make an adjustment of the trading strategies they use. Adjustments that will certainly make you more comfortable and more confident. Therefore, find yourself, and adjust with the skills you have.

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12:43:00 PM | 0 Comments

Trader Psychology: Trend, Margin And Patience

Just what does the relationship between trends, margin and patience? Well, frankly I just suddenly remembered my mentor message, that three things are the basics of the main that must be understood and mastered to become a good trader.

Trend

Trend is the first important thing that must be understood by a trader. By understanding the trend, we could take the position that "just right". Is not a question that is always present in the mind of a trader is: "buy or sell?" The question can of course be missed if we know the trend is going. So by understanding the trends, the fundamental problem in the trade is solved.

Now the problem is: how the heck determines the trend going? Um, about how to determine if the trend is going, then we discuss indicator .. Ok, there are some simple indicators that we can use to identify trends, such as moving average (with a wide range of variants) and parabolic SAR.

You may choose among a wide range of variants and period moving average to suit your needs. Alternatively, you can use the indicator that is simpler and easier to read as parabolic SAR. Uh, or you can also try the method ala master average market trader campus ... Just choose ... which one is most suitable for you.

Anyway, one thing is sure, just follow the trend, 'cause ... the trend is your friend. Do not attempt to defy the trend, if you do not want your floating position is not clear in time do not necessarily. Believe me, because I have experienced, because of quasi convinced by the analysis (my own style), the result is contrary to the trend is going, and ended with the "success" makes account alias MC. So, please, just follow the trend is going. Not okay to say chimed market as well, which is important right profit.

Margin

The second question in the mind of a trader (after knowing the position to be taken) is: "how many lots?" Well, to answer this question, you must understand the principles are second, with margins. Margin management capabilities is essential to master trader. No matter how good analytical skills that will not be useful if it is not accompanied by the ability to manage margins. So, if you want your account "longevity", remember to be disciplined to manage your margins.

Patience

This last principle is related to psychological aspects. A good trader is a trader who wait. Well, frankly, I (was) not a patient person, including when trading. So, I (was) used to play hit and play Sabet when enter the market. Well, finally the problem of patience this is the first emphasized by my mentor. I was once trading just impulsively plus untidy. By him to be a swinger then directed traders who comply with the trading plan. Is it Difficult, right? Wew, do not ask, playing a hit because hands itching to OP frequent occurrence also! but with time, patience finally started also appears anyway.

Anyway, three principles: trends, margins, and patience you should indeed consider seriously if you want to be a good trader.

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12:39:00 PM | 0 Comments

EURO Looks Stable

The euro appears to be stable in trading on Monday (21/3) morning. In the weekly session the currency of the continent is still in a high level of 3 weeks.

EURUSD steady at 0:04% at the level of 1.1270. The release of data that can influence the direction is the trade balance this afternoon, as well as monthly reports German buba, while the US data is that existing home sales in February are expected to rise in the level of 5.32M from 5.47M.

Elsewhere, according to the Fed fund indicators, there is the possibility of a rate hike however, opportunities rise in June about 50%

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2:25:00 PM | 0 Comments

Investing Gold, Is It Time?

Central banks play an important role in maintaining and increasing the demand for gold bullion. Russia's central bank is one of the most top in buying gold to strengthen its reserves. In the record of the World Gold Council (WGC) The Central Bank of Russia is a major gold buyer both in 2014 and 2015. With the fall of the ruble in 2015 made a gold purchasing trends by Russia changed later.

Investors are still confident of gold investment demand this year will still be increased by 15% from the four quarter amounted to 169.3 tons yesterday. This is in line with the capital outflows Gold ETF which experienced a slowdown anyway. WGC reported that gold demand remained flat over the past year alone, which is 4,212 tons, of which the first half is lower than in the second half. The fall in gold prices in the second half coupled with increasing geopolitical crisis and the global financial turbulence makes the purchase of gold rose.

Purchases made by the central banks also increased from last year amounted to 584 tons in 2014 to 588 tons. Step diversification of assets is done in anticipation of the fall in crude oil prices and global economic confidence falls. Russia's central bank, for example, buy no less than 200 tones of gold by 2015, of which 141 tons of which was purchased in the second half. Oil is one of the mainstay of Russia's commodity, so the fall in crude oil prices is anticipated to increase foreign exchange reserves in gold.

The amount of gold bought by central banks recognized by WGC higher than their estimates. An estimated range of purchases by central banks over the year is 400-500 tons, is now at least a range of purchases rose at 500-600 tones. Interestingly, the change since 2010 is that they initially net sellers, a net Purchaser.

In contrast, demand for gold by retail customers decreased by 2%, or 3,427 tons, excluding the purchase of gold is still increasing in China. The problem is China has faced slowing economic conditions and their currencies also weakened. On the bright side, traditionally gold itself is still a commodity that is in demand in India. Typically, gold demand will soar in the second half before the celebration of Diwali.

The retail consumer prefers gold in the form of bars and coins, particularly in China. Although Yuan expected to weaken this year, it raised chances safeguard assets by purchasing gold. By contrast, in Russia, the retail consumer demand has decreased most sharply, the lowest in the last 14 years or a total of 42.1 tons or 39 per cent decline. The fall in crude oil prices and the ruble makes consumers hold back on purchasing gold.

In 2016, so far the price of gold rose 12%. Triggered investor concerns over global economic conditions are opaque, although the shadow of the strengthening US dollar, if the interest rate is raised again by the US central bank, the Federal Reserve - will hit the price of gold back. Even Goldman Sachs estimates ema at year-end prices could return to $ 1000 per ounce. Despite the potential to go down, but for investors who are concerned about erosion of their portfolio in equity assets, of course, buying gold is a good choice, especially if it has been done since January 1 yesterday.

Gold has become an investment option especially addressing the trend of negative interest rates, which is expected to be done by central banks this year. On Tuesday (16.02.2016) for the first time in history, the Japanese bond yields to redeem past 10 years are in a negative position. Of course, placed the money in banks with negative interest rates are actions that will erode assets. One way to save the assets in such circumstances are changing commodity investments in gold. For some market participants who are not familiar with gold trading over the years, the way out is indeed feels awkward. But this is the best step that can be taken when the current condition is uncertain.

There are also other choices in allocating current investment, buying shares of gold mining. When gold prices fall, these stocks took ideas. Currently, some of which fall into the category of cheap. In fact today, most of these stocks have risen after gold prices also rebounded, expected that the majority has risen 22%. Indeed, if it had to choose between buying shares of gold producers or buy gold directly, still better is to buy gold directly.

With the rise in share prices of gold in such a way that, of them even have approached the high level, even when compared with the products of gold itself can be even more expensive. At least, these two things, both gold stocks or gold itself is moving toward the top.

Investors still have to be aware of the movement of stocks and crude oil prices. Selloff that hit the stock market can just stop and make a rising gold price stuck back. Everything will not run continuously, the cycle will always be corrections and stop for a moment to determine the pace of further movement. The US dollar is still in control is important, fluctuations in the gold price will drag universal pattern.

More recently, a statement the US central bank governor, Janet Yellen to negative sentiment for the US dollar. The selloff that spread to the stock market and money into a tail wind for gold to strengthen again. No one can be sure when selling will stop, especially the majority of market participants today, amid the confusion as central banks themselves. Liquidation will still underway and will end in time. Currently selling tsunami is over, you who have bought gold will arrive turn to come out and liquidate positions.

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2:19:00 PM | 0 Comments

Impulse Wave Gold Ends Soon, LTRO Eurozone and US Digo So Determinants Week

The price of gold in last week's trading is good-good. The rise in gold prices supported by the delayed US rate hike at the FOMC meeting.

Besides the increase in gold prices is a market response to the lowered forecast US GDP as the shape of the Fed worries about the future of the global economy, especially the economic chaos in the Eurozone and China.

This week there is no economic data is crucial to the sustainability of the increase in the price of gold, so that according to our research team potential impulse wave will most likely end followed by profit taking in the market as a form of trading patterns are common.

Our team view and analyze the gold price increase could end when the LTRO or Long Term Re-financing Operations central bank EU, ECB, issued stimulus funds that are smaller than the previous period amounted to € 18 billion, but when the stimulus package amount is the same as the previous period, the impulse wave gold can still continue.

Thus, the market can also search for a starting point or focus of the gold price movement is at DGO US economic data later in the week.

Durable Goods Orders / DGO US will be released by the US Commerce Department to estimates based on our team that the condition of the US durable goods orders will be a slight decline in this period. This is caused by a number of US transportation orders were reported to have decreased, so that the potential of the US GDP growth will be restrained and made the dollar index will also be under pressure, can be read with a rising gold price.

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1:30:00 PM | 0 Comments

Gold Analysis March 21: Corrective Bearish On The range of USD 1254

After bullish responded dovish FOMC statement last week, Gold do a bearish correction in the range of USD1254. However, since December 16 last FOMC statement, gold has gone up more than 18 percent. Expectations FED will raise interest rates this year has faded since the initial rise in December, as concerns over the global growth rocked financial markets and the Fed Yellen said that his team is projecting only two hikes in 2016's.

Thus, the bullish movement Gold is a logical speculation in response to the risk of global economic growth and easing tend to do the world's major central banks today.

 Technical analysis

At the H4 chart below may be one of the possible Elliott Wave count that can help you take trading decisions today.

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11:05:00 AM | 0 Comments

Shocking Movement: The Gold Price Closed Descending Last Week

Learning Investment09 - Gold futures prices declined again last weekend (3.18), reversing the increase experienced before. The decline in the gold price is in line with the strengthening US dollar. Moreover, global stock markets were able to reduce the safe haven appeal of the precious metal, prompting market players to take profits after a sharp rally on Thursday.

Gold for April delivery fell by 10.70 US dollars, or about 0.9 percent to 2.9 percent after rallying in the previous day. In the Asian session this morning (21/3), gold futures trading around 1,253.90 per ounce price level.

Colin Cieszynski, Head of Marketing Strategy at CMC Markets told MarketWatch on Friday, the movement of gold prices on Friday was a normal trading correction. In addition, he also added that the movement of gold is quite strong lately, and a lot of traders who do take profits before the weekend.

Not only gold futures are declining, but silver futures were also down about 0:13 per cent, which is traded at the price of 15 790 US dollars. Meanwhile copper futures for delivery in May traded at 2,278 dollars; The commodity price decline of 0.35 percent.

 American Economic doubtful

Investors and economists have lowered their expectations for rate hikes as surprisingly dovish outlook the Fed become too predictable and interest rates will not rise before September. Regardless of the correction in gold prices last week, the price of gold so far has gone up about 16 percent this year as investors seek a safe haven in the face of unstable financial markets and fears the global economy China is declining and making difficult the Fed to raise interest rate.

For the week, market players will give their attention at the announcement of fourth quarter US GDP as a new indication of the strength of the US economy. Durable goods orders report (durable goods) and sale of residential (home sales) will be the focus in line with the trend for investors to estimate if the world economy is strong enough to withstand higher interest rates in 2016. In addition, investors speech will also oversee a number of Federal Reserve officials this week, namely James Bullard, Dennis Lockhart, Jeffrey Lacker, Charles Evans and Patrick Harker.

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10:56:00 AM | 0 Comments

Trading AUD / USD The Australian Employment Change Data March 17, 2016

Learning Investment09 - Employment Change or changes in the number of workers released every month by the Australian Bureau of Statistics and the usually high impact on the movement of the AUD. This indicator is one of the reference to the Reserve Bank of Australia (RBA) to determine changes in interest rates. Changes in the number of workers is strongly influenced by the jobs available, and will indicate the overall economic activity.

Today March 17 at 07:30 pm will be released the data changes in employment and the unemployment rate in Australia in February 2016. Although it was released in conjunction with a data rate of unemployment is also high impact but the data changes in the workforce (Employment Change) is usually more impact. Last January the amount of labor in Australia decreased 7,900 people, lower than the estimated 12,900 people who will increase.

For the month of February 2016 is estimated workforce will increase 11,600 people. If the result of the release of higher than expected, the AUD / USD will tend to strengthen, and vice versa if it is lower than expected, or even reduced, the AUD / USD is likely to weaken.

Technical Overview

Of the 4 hour chart above, until March 17, 2016 3:30 pm hour show bullish tendencies:

1.      Formed bullish engulfing candle.

2.      The rate broke the 55 ema resistance curve and point indicator Parabolic SAR (Parabolic Stop And Reverse) moved to the underside of the bar candlestick, showing price movements tend to be bullish.

3.      The curve indicator RSI moves above the center line (level 50.0).

4.      Line histogram ADX indicator changes color to green indicates a dominant bullish.

Confirmation to buy if the curve MACD indicator has moved above the signal curve (red) and line histogram OSMA also move above the level of 0:00. (Currently the MACD curve and precise signal curves intersect).

Weekly pivot levels: 0.7510

Resistance: 0.7593; 0.7645; 0.7700; 0.7770 (38.2% Fibonacci expansion); 0.7850; 0.7904; 0.8000; 0.8080; 0.8150; 0.8210.

Support: 0.7449 (61.8% Fibonacci expansion); 0.7385; 0.7340; 0.7282; 0.7250 (76.4% Fibonacci expansion level); : 0.7187; 0.7145; 0.7110; 0.7068; 0.7012; 0.6927 (100% Fibonacci expansion level); 0.6843; 0.6770; 0.6700; 0.6686; 0.6600 (coinciding with the 123.6% Fibonacci expansion level); 0.6532.

Indicators: exponential moving average (ema) 55; Parabolic SAR (12:02, 0.2); Bollinger Bands (20,2); MACD (12,26,9); OSMA; RSI (14); ADX (14).

Levels of essential AUD / USD: 0.8000; 0.7978; 7904; 0.7790; 0.7700; 0.7600; 0.7403; 0.7283. 0.7110; 0.6843; 0.6700; 0.6686; 0.6532.

Fibonacci expansion:

Point 1: 0.9400 (the highest price of 5 September 2014)

Point 2: 0.8034 (lowest price January 5, 2015)

Point 3: 0.8293 (highs January 15, 2015)

Fibonacci fan:

Swing point high: 0.9400 (the highest price of 5 September 2014)

Point swing low: 0.7625 (lowest price 3 February 2015)

5 scenarios movement AUD / USD:

The market forecast for the Australian Employment Change February 2016: +11.600.

1.      If the results of the release according to estimates, is between +8.000 to +14.000, then chances AUD / USD still going to move in a range, which is moving to the limit of resistance or support is nearby and the possibility to penetrate the resistance level or the support is small.

2.      If the result of the release of the above estimates, between +18.000 +14.100 up, then it is likely the AUD / USD will break above the resistance level.

3.      If the release is far above the forecast is higher than +18.000, then it is likely the AUD / USD will break above resistance level 2.

4.      If the results of the release below forecasts, ie between +4.000 to +7.900, then it is likely the AUD / USD will drop to penetrate the support level below it.

5.      If the result of the release of far below expectations, which is lower than +4.000, then it is likely the AUD / USD will break below the support level 2.

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11:23:00 AM | 0 Comments

Buying Action Re-Opened

Learning Investment09 - 1990'an last decade cigarette ads with the phrase "How Low Can You Go," to illustrate how low the nicotine content of their products in which competitors can not be considered his inferior. Likewise, the picture is in the stock market in 2009. The shock of the financial crisis in the United States swept the trillions of US dollars from the stock exchange. Wall Street Journal on March 9, 2009 edition makes the headlines of the day, "How Low Can Stock Go", describes the conditions at the time as the worst since the Great Depression era.

Seven years have passed since the market is at its nadir, March 9, 2016 with a record of the current $ 14 trillion value of the shares has been returned and pushed the index Standard & Poor's 500 rose nearly 200%. Currently, the anxiety began to permeate the investors. Confidence them down, that the market will be able to continue to climb. These concerns are based on corporate earnings that are still disappointing, slowing economic growth and uncertainty over China's stance with regard to interest rate policy. Investors eventually secured themselves by pulling their funds out of the stock market in the rate of speed that had never occurred before. As a result, during the past 18 months, the index S & P 500 was only able rose by 0.5% only.

Read also Taming DerivativeThrough Strengthening Clearing

Referring to the previous history, the traditional view of addressing these events with more cynical. So that the market does not collapse, and could last longer then the investor attitude is very reasonable. The market is too strong impetus gains, typically killed by excessive confidence. Furthermore, it would be difficult to find. Market participants now been seized with a feeling pessimistic, skeptical and unsure to put their funds in stocks where the position they have in the high prices that have not previously been encountered. Of course, this will be more interesting, conflicting sentiments will form concerns these stocks were able to climb.

This concern can be seen from the flow of funds out of the stock market. In the last 12 months investors have issued at least $ 140 billion, two-fold greater than the peak current capital outflows in the same period when the global financial crisis. Interestingly, these stocks will tend to move up some time later after a large flow of capital out. In a note, since 1984, there are 12 times the incidence in which recorded outflows occurred and six months later an increase in stocks. The moment than a dozen of these, only twice irregularities pattern. S & P 500 index generally rose by 7.1 percent, according to Bloomberg research.

How much lower the stock will go down, almost all could have guessed it would not decrease the price. At least the feeling skeptical that the market will be difficult to climb, could consider going back reversal of the market. With patterns that previously occurred, at least in one half of the future will be price re-increases. Of course this will be an opportunity for investors who are brave enough risk, risk appetite, entry after making sure that the fall in prices will not be much longer and the market will be ready to turn around directions.

In the last 7 years, the sectors stocks in the Consumer Sector Top Gainers are, most prominently, followed by the financial sector, industry, technology. These three sectors trooped price increase. Sector Utilities, Telecommunications and Energy occupies a position protruding performance over 7 years. Considering the track record of this increase, investors have the option to drop on which sector is very potential to go up at least in one semester to the next year.

2016 begins with a disappointing performance, the first six weeks was recorded as the worst performance in the history of the US stock market. Stock moves 2% either up or down. But since mid-February, Bearish pressure seems to have turned into an opportunity for buying back, buy back. Some issuers it is worth re-considered by promising good performance this year.

The financial sector is still regarded as the source of the birth of the financial crisis in February 2008. In fact yesterday, they lead the reinforcement of the market from the ground up. Investors are still blaming the sector is catastrophic. Last year, this sector could generate at least $ 228 billion on the stock S & P 500. In line with the improvement in the market, this sector was also recovered. As a result, sectors that were formerly hated, such as energy and mining, also appear to be ready will be a favorite of investors back. The declining trend (Bearish) has opened the doors of buying back.

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10:28:00 AM | 0 Comments

EUR GBP Ready to Test 0.7928

Learning Investment09 - Along with the strengthening of the euro against the dollar, EUR GBP also rose. At the end of yesterday's session at 0.7866 EURGBP positive closed. The positive acquisition can be resumed again today. When the analysis was prepared EURGBP has been moved up to 0.7849. Upside potential is still seen in some time frame.

In the 15-minute chart EURGBP is above the strong support at 0.7872. With the support of the support EURGBP potential to rise again with the next target at 0.7928, the highest level session of February 25. Potential rise on the daily charts also remain supported by the moving average is at 0.7700 today. If at the end of this session EURGBP could generate a considerable closing above 0.7875 zone, potential upward direction will be even greater because it means EURGBP is able to produce stronger penetration against one of the medium-term resistance. (Tata Suharta - MarketWatch)

Support: 0.7870, 0.7810, 0.7760

Resistance: 0.7928, 0.7960, 0.8000

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2:55:00 PM | 0 Comments

The Crowded Safe Haven Make Investors Worry

It should be recognized that a variety of positive data last week were able to be a tail wind that pushed stock indexes rise and now it seems the wind has changed direction. Markets fluctuate despite the uncertain direction of the trade.

On Wednesday (03/09/2016) Asian Stocks tend to move down the continuing decline in the previous and following the results of trading on Wall Street. Japanese shares be driving today's decline is influenced by sentiment renewed concern over the statements regarding the condition of the global economy, and encouraged investment security needs, thereby suppress the price of a commodity, too.

Japanese TOPIX index declined 1% while the mining sector became the main driver of this decline. Copper commodity prices in futures trading continued price decline by selling amid the rise of the metal industry today. Crude oil prices still trading below $ 37 per barrel. The Australian dollar was depreciated while the Japanese yen rose for a third day on the dollar and Euro this.

After three weeks the increase in the stock market occur and is able to return nearly $ 5 billion of funds previously losers of global decline in equity values, this reduction makes sense technically. Correction shortly after a rally that long to find a new balance while waiting for the latest economic data, particularly regarding Japan and China. In addition, the market's attention is also focused on what steps will be taken either by the European Central Bank (ECB) or the Bank of Japan and even the Federal Reserve will be announced in a week. Many opinions assess the decline in China's stocks have shaved at least 0.3% of the national growth of the Bamboo Curtain country.

Yesterday, the Chinese economic data into the limelight of global market participants as an indication of the current international economic view. The next market movement trend is continuing what effect, if initially the upward then will rise and vice versa. In other words, the market conditions relatih secure to perform transactions. After reporting a contraction in GDP in the fourth quarter at the end of yesterday's trading session, Japan reported the latest data query engine, while from China awaited news of the event National People's Congress (NPC).

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The MSCI Asia Pacific index dropped 0.8 percent this morning to try to establish the lowest trading level since March 2 yesterday. Trade influenced the collapse of exporters were down 1.7% on the Japanese TOPIX index. The Kospi index fell 0.1% and the MSCI World Index was down 0.2. The index S & P / ASX 200 of Australia, where the mining sector recorded the second largest after the banking sector, reportedly did not experience perbahan, only a small down 0.5%.

Index futures exchanges of Hong Kong, the Hang Seng and the Hang Seng China Enterprises Index dropped 0.2% respectively. Shanghai's Composite index ended up 0.1% yesterday although it had fallen 3%. The index Standard & Poor's 500 and the Dow Jones flat course. The index S & P 500 was down 1.1 percent after touching its highest level since 5 January. Driven by falling stocks of raw materials amounted to 2% and the energy sector. Crude oil fell for the first time since the three-day, 3.7 percent to the price of $ 36.50 per barrel after briefly made the most expensive price in two months, the fall in crude oil prices triggered by the increase in US crude reserves.

In currency trading, the yen rose 0.2% to 112.45 per dollar, and rose 0.3% to 123.64 on the Euro. Currency usually moves in line with movements in its stock index, is now a star among the other currency pairs this year. Meanwhile The Australian dollar fell 0.2 percent to 74.27 US Sen, tercata as penrunan streak in two days. Bloomberg The dollar index did not change much after rising 0.2% in the previous session after a six-day turn.

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2:50:00 PM | 0 Comments

Philippines As New Threats On AEC: "Philippine growth at one-year high as stake spending kicked in"

The decline in interest rate - Supports Economic Growth in the title is the tagline that I read on Bloomberg Terminal yesterday, and I was trying to figure out what was going on there.

And it turns unexpectedly Philippine economy is being stretched, among others reflected in the growth of government spending rose 17.4% (y / y), consumer spending rose 4.6% in a year, investment grew 13.5% and services rose 7.4% over the past year. (Exactly the same as what happened to the Indonesian economy period before the economic crisis last 97/98).

Policy changes made by President Benigno Aquino today to fix the bottleneck in government expenditure and consumer purchasing power in the midst of the global economic slowdown, successfully brought the Philipine become one of the most successful of its economic growth and is recognized by the World Bank today.

Philippines could achieve economic growth above 7% as of 2013 and then decreased in subsequent years. Changes in regulations on services and infrastructure improvements were able to make this country back its bullish economy.

With a total of 100 million people, or approximately 1.5x of Indonesia and increased 281% since 1960 which only amounted to 26.3 million, the country has successfully formed a working rotation and utilization of the human capital in the era of MEA and globalization, labor cost, quality and very productive in the appreciation by the multinational company, for the government of the philippines to improve the quality of infrastructure in his country, and then managed to bring in foreign investment of capital investment in the country.

The Stock Market Rising

Indeed, if there is the potential for economic growth in the long term investor will come in droves and foreign capital flows would be massive, on the other hand, corporate profits are rising and the risk of default is lower it will be easier for companies in Philipine for taking out debt securities (bonds) , so the money market and the capital market will be very well be a land investment.

If we take the data from 2008 to 2015, during the seven years of the Philippines scored a stock market rise of 110%, 3,800 to 8,000, and the potential to climb again this year.

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2:32:00 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.

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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.

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10:39:00 AM | 0 Comments