EUR/USD Price Action For This Week

Forex Education Center- EUR/USD Price Action For This Week,What's up friends .... reunited with forex price analysis this week, I take this analysis is based on W1 or weekly time frame. 

For this time you will get information on the price of the currency pair EUR / USD is going to look like in the picture below

Looking at the picture above, we will obtain an analysis for this currency pair. 

After experiencing a decline in the price action that occurs in a long time during the last month now it seems the pair looks like it is time to return to the next price trends.

The pair will be supported technically drive prices visible

support 1 = 1.23520

Resistance 1 = 1.29879

Resistance 2 = 1.31870

Based on the level of support and resistance that occurs then the pair today or at least this week has a tendency to take action bullish trend, although the potential for a bearish trend, there is still enabled the pair to get to 1.23520 as a strong support level monthly.

This situation will be achieved depending on which one first, if it turns out the pair managed to rise towards bullish trend means that the price range will be pursued in accordance with the above position limits support and resistance levels that are already visible.

We look on daily time frame first

When we loook at Daily Time frame its will be bullish trend to 1.29879 than the true of trend will be correctly down trend again.

Conclusion

Buy for EUR/USD for this week close at 1.29879 than Sell on that level.

Understanding Investment Strategies: Dollar Cost Averaging

Understanding Investment Strategies: Dollar Cost Averaging 

Every person who invests, any type of investment, must expect to be profiting aka profit. If possible profit obtained is the greatest, of course. 

However, investing is not so natural. Because there are times when an investment gives a great advantage at one time, but at other times the same investment is actually causing huge losses. 

The causes are numerous, including the knowledge of investors about investment instruments that he chose, and an understanding of the macro and micro economics. Complicated? It is certain. 

But it could be slightly modified with an investment method called Dollar Cost Averaging (DCA), which is known for easy and simple and can be done by anyone. 

"The words" dollar "because this method originated from the United States that uses the dollar," said Edhi Widjojo, president director of AXA Asset Management Indonesia. "The dollar can easily be replaced with" dollars "to adjust the currency used in investing." 

In essence DCA is a method of investing regularly in the same amount of money in a specific period, in the form of stock or mutual fund investments. By investing regularly, then the investor will still make the purchase when the stock price down or up. When dropped, the shares purchased would increase much, and vice versa. At the end of the period, the difference in the purchase of high and low purchase price, and the number of shares held, which determines the success of your investment. 

In other words, according to Edhi, DCA is an investment strategy regularly every certain period regardless of market movements. 

"The goal is to reduce the investment risk due to market fluctuations aka market volatility," said Edhi. 

Edhi explains that DCA is suitable for novice investors who do not need to care pergrakan market or market timing. "Because the investment is made in" installments ", then no need to wait for a huge amount to get started."

The Types of Investments You Need To Know

The types of investments you need to know 

Make Financial Planing can not be separated from investment activities. The reason is, investing is a means to achieve financial objectives, and not an end in itself. 

Make Financial Planing can not be separated from investment activities. The reason is, investing is a means to achieve financial objectives, and not an end in itself

Well, every asset investment has the characteristics of the potential benefits and risks different. "So when asked 'where the best investment asset', then the answer is DEPENDS!" Said Pritchard Hapsari Ghozie, SE, MCom., CFP, an independent financial planner and director of ZAP Finance. "It depends on what your risk profile? Depending on how long the funds would be used? Depending on how much profit you want? 

Pritchard explained that despite the current financial products offered in Indonesia is very diverse, ranging from deposits, retail bonds Indonesia, mutual funds, unit-linked up, actually kind of investment only assets are divided into four. What? 

Cash or Cashier. "Although the name of cash, does not mean you can put money in a closet or under a pillow like those earlier times," said Pritchard. "Property investment in the form of cash are generally offered in the form of savings, deposits, or money market mutual funds. The potential benefits are usually not more than 6 percent per year, but the risk is very small investment. "

PendapatanTetap. Financial assets, according to Pritchard features provide a fixed income for its investors, can monthly or yearly. "Generally offered in the form of bonds or debt securities, and fixed income funds," said Pritchard. "The possibility of the value of your investment will grow over 10 percent per year is minimal, but if there is any fluctuation in market value of investments are generally not reduced drastically." 

Stock. It is proof of ownership of a company. "I usually split into two shares, which shares an open and a closed stock company," said Pritchard. "Examples of the company's stock closed is if you have a business franchise, or a small business rumahan.Untuk public company shares, no stock options Blue Chips are usually large market capitalization, and the second tier stocks." 

Mike further explained that for asset classes of shares, the options can be found in the form of a mix of mutual funds, mutual fund shares, and common stock. "The risk of this investment is quite high, but the potential benefits that could be given to more than per cent per year on average," said Pritchard. 

Physical assets. The last type is a physical asset that is typically in the form of gold, precious stones, and property. "Well, the potential returns can be quite varied, depending on the form of investment that we choose," Pritchard explained. "The main advantage of this asset class course investors holding direct investment products." 

So, where the investment asset class that should be your choice? According to Pritchard, of course everything. "It should always be remembered that the basic principle of investing is to never put all your funds in one class," he said. "Establish an investment portfolio consisting of four above investment grade, with a composition adjusted by the risk profile of each

How Stock Prices Determined

Forex Education Center- How Stock Prices Determined,Price of a stock is determined by market participants based on the demand and supply of the relevant shares in the capital market, where the relationship between price and supply is negative (increased offer price drop), while the relationship between price and demand is positive (increasing demand prices rise ). 

Another thing that affects the supply and demand for a stock of which is the expectation or hope in the future of the company and the issue of performance issues related to the company concerned, giving rise to speculation that is temporary (in the Indonesian capital market just as the stock is known as fried stock ). 

One of the theories about the stock price in the continuous cycle of professional investment is the Efficient Market Hypothesis (EFM), although this theory has been discredited by many widely, both in academic circles and capital markets professionals. In summary, theory suggests that the price of an equity share is price efficient and will tend to follow the movement of randomly determined by the emergence of late-breaking news (randomly) from time to time. Therefore professional equity investors who tend to spend their time immersed in the flow of information is fundamental in order to gain an advantage over their competitors competitors (mainly other professional investors) by more intelligently interpreting the flow of information (news) is emerging. 

EFM theory does not seem to give a complete picture of the process of equity price determination, such as the stock market is more stable than a theory that assumes that the price is the result of the discounted future cash flows expected to be incurred. In recent years it has been realized that the stock market is not perfectly efficient, perhaps especially in emerging markets or other markets in which the level of professional activity (availability of good information) is still lacking. 

Another theory of share price determination comes from the field of Behavior Finance (Finance). In the financial behavior, it is believed that people sometimes make irrational decisions, especially related to the purchase and sale of shares is based on fear and a false perception of an event. Irrational trading can often create stock prices deviate from rational price, which is based on the assessment of the fundamental price. For instance, during the technology bubble that occurred in the late 90s and then burst back in 2000-2002, technology firms are often negotiable far beyond the rational fundamental value because of what is commonly known as the theory of "greater folly ". Stupidity Greater theory states that because the predominant method to realize profits from the sale of shares to other investors, a person should choose stocks that they believe that others will judge these shares at a higher level in the future.

Controversies in the storage of funds directly or through establishment of collective investment

Forex Education Center- Controversies in the storage of funds directly or through establishment of collective investment,the biggest advantage of investing in pooled funds are investors access to professional expertise and gain diversification of holdings within the fund. Investors also receive the services associated with these funds as regular written reports and dividend payments (where applicable). The major disadvantages of investing in pooled funds are payable to the managers of such funds (generally must be paid at the beginning and every year and sometimes on exit) and the diversification of the fund that may or may not match the background of the needs of the investors. 

It is possible to over-diversify. If investors keep some funds, risk and structure of the overall position is an amalgam of storage in all the different funds and arguably the investors to an index or market risk estimates can be made​​. 

Costs or fees paid to professional fund management organization should be monitored carefully. In many cases that is not good (such as fees and other costs which the fee is not visible and hidden in the work environment of the organization) is greater than the payment of dividends and profits after tax returns which investors expect in an average year.

Fundamental Analysis and Technical Analysis 

In the effort to try to identify a good stock for an investment, there are two thoughts: technical analysis and fundamental analysis. The first one is done by studying the history of the stock price and the price history of the stock market as a whole; technical analysts have developed a variety of indicators, some of which are very complex, which is expected to provide useful information in terms of volume and price. Fundamental analysis is done by studying all the relevant information relating to the stocks and market conditions to try to look at the business outlook and future financial development / finance, including the movement of the stock price itself. Fundamental information studied include the financial statements, and any account, industry data (such as sales and order trends) and see the general economic and financial conditions (such as the trend of interest rates).

Investment in equity

Forex Education Center- investment in equity,Equity investments are generally associated with the purchase and storage of capital stock on a stock market by investors, both individuals (individuals) and companies (institutions) in anticipation of income from dividends and capital gain as the value of these shares is increased. It is also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created). When investments are made in the new company, it is called as a venture capital investment and is generally understood to have a greater risk than investments made in situations where the shares are listed on a stock exchange.

Direct Investments and Funds collected 

Investments can be done directly by the investor in several ways: 

Venture capital investment 

Direct equity investments in companies that have been established and are not listed on the stock market. Usually done to strengthen the financial position of the company, or the company's business expansion can also save oparasional companies due to liquidity problems. 

Direct investments in companies that have been listed on the stock market. In general, the buying and selling of shares is done by using the services of a broker (in Indonesia known as the securities brokerage company), while the trading mechanism established by the authority of the capital market and securities brokerage company in question. 

Indirect investments generally made ​​by individuals through mutual funds or any other form of storage that is specifically from the investment of funds collected, most of them list prices are displayed in financial newspapers or magazines business magazines. 

According to the Capital Market Law number 8 of 1995 Article 1, paragraph (27): "Mutual fund is a container used to collect funds from the public Financier to be invested in portfolio securities by the Investment Manager." 

Mutual funds are typically managed by a fund management company that is well known (eg Fidelity or Vanguard). Such holdings by individual investors an opportunity to diversify risk with little capital and managers have access to the expertise of professional managers in the management of these funds. An alternative usually employed by large investors and institutions (such as large pension funds) is to hold shares directly; in the institutional environment many customers who have their own portfolios have what are called segregated funds in the opposite sense with, or in addition, collected, such as alternative mutual funds.