Saturday, January 17, 2009

The Gaps

What is referred to as the gap or gaps between the price jump is a period to the highest price in the period following bottommost (gap up) or vice versa (gap down). When that happens the market is not very active or in the pattern of congestion with the volume low, then the value does not mean that the so-called gap in ordinary or common gaps. When accompanied by high volume, then we are talking about the gaps in transparency (Breakaway gaps) and the expected price movement will be a faster way to breach it.

Can also increase the volume on the direction of a movement in prices, then found that with such a gap is running (runaway gap). Demiikian gap can produce a target price (price objective) the distance is measured from the point gap and the length is the same as the previous peak or valley to the point.

There are also referred to as a gap in the movement behind the (island reversal gap) is limited by a gap after the (exhaustion gap) and through the gap (gap Breakaway).

RISK MANAGEMENT II

Understanding risk management is very important for investors to meghandle transaction that position so that one does not experience a greater loss. Risk management are:
1. Cut Loss
Is immediately close a transaction due to the wrong position to take any decision, Cut loss is done in order not to experience a greater loss.
2. Locking / Hedging
Lock the transaction is the wrong position with the position of the transaction without meliquid, to hold the loss
3. Reverse Cut
Meliquid soon as possible is the wrong position, and then replace it with the opposite position
4. AveragingIalah transaction again with the same position, without meliquid of the transaction, based on the analysis of the right, especially when the price movement so that it will turn profit in the second transaction to balance losses in the previous transaction

OPPORTUNITY AND RISK

The opportunities and risks are important issues that must be understood when someone wanted to plunge in the business of trade measure. To better understand how the business opportunity of this let us cermati following illustration:
Mr. Yudi is an investor in the business of working Forex. Transaction EUR / USD on Thursday, 8 May 2008 Tgl.
At the price at 08.00 WIB EUR / USD is 1.5338, based on analysis that he believe, he decided to make a transaction of 1 Sell lot. . Mr yudi meliquid transactions at 08.45 WIB in the price of 1.5296.
Profit earned:
Net point = ((price-price sell liquid) x lot) - (Commission + Spread)
= ((1.5338 - 1.5296) x 1) - (5 + 6)
= 42 - 11
= 31 point
Profit Point x = Value per point
Point x = 31 $ 10
= $ 310
= $ 310 x Rp 6,000
= Rp. 1,860,000

Then at 13.00 WIB The Price EUR / USD is 1.5316, based on analysis that he believe, he decided to do the transaction again, and this time he decided to do the transaction of buy 1 lot on the price of 1.5316. Mr. Yudi meliquid In the transaction at 18; 00 WIT in the price 1.5366

Profit earned:
Net point = ((hrga Liquid - buy price) x lot) - (Commission + Spread)
= ((1.5366-1.5316) x1) - (5 + 6)
= 50 - 11
= 39 point
Profit Point x = Value per Point
= 39 x $ 10
= $ 390
= $ 390 x Rp 6,000
= Rp 2,340,000

From the illustration above we can see the opportunities that exist in this business in one day, if a business can take that opportunity, not a chance it might not be a profit own business each day.
However, there is every opportunity that also brings risks that should be ready to face. In the illustration above, Mr. Yudi take 2 times a right decision based on the analysis of the right also. If the illustration above Mr. Yudi take the wrong decision, such as Mr. Yudi In the first transaction Buy making a decision, then he's going to be losses (risk). Similarly in the two transactions to make the decision if he's wrong.

FOREX

Forex abbreviation of Foreign Exchange, or the exchange value of different currencies. forex activities unwittingly or knowingly, often carried out by all the world, when you travel abroad you sure you exchange currency in the currency of your country that direction. Or another example as a result of the import-export activities, the needs of market institutions and banks, make sure the exchange of currency.
When we take advantage of trade with the difference between petukaran purchase price and the selling price fluctuation every minute, usually called the trading of forex trading is usually done through a trading house / brokers! Can be online or via the Internet telp, or even with the manual.
Type of forex being:

a. Major rate
Is the type of currency exchange, between the currency of your currency in the dominant international currency with the U.S. dollar
Example:
EURO against the U.S. DOLLAR (EUR / USD)
POUNSTERLING against U.S. DOLLAR (GBP / USD)
Australian Dollar against the U.S. DOLLAR (AUD / USD)
DOLLAR against JAPANESE YEN (USD / JPY)
DOLLAR against Swiss Franc (USD / CHF)
b. Cross rate
Is the type of exchange of currencies other than the currency of U.S. dollars.
Example:
POUNSTERLING against JAPANESE YEN (GBP / JPY)
Australian Dollar against JAPANESE YEN (AUD / JPY)
EURO against POUNSTERLING (EUR / GBP).

Asian Stock Index (Asia Stock Index)
Indicator is a level of stock prices combined measure of the average movement of the prices listed on the stock exchange. Stock price index future ditransaksikan that is the price index in the future SIMEX (Singapore International Monetary Exchange) for the Nikkei Index Future, for the Hong Kong Stock Exchange Index Hangseng future, and South Korea Stock Exchange for the Kospi Index Future.


Bullion (Gold and silver)
Noble metal bullion is recognized as one of the oldest means of transaction in the world.


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