InvestingKia

Interaction on stock price analysis, in fact, the basic analysis is not the sole analysis tool used only by investors and analysts. Many people embrace another way called Stock Technical Analysis. For them, compared to basic analysis, stock technical analysis is considered more accurate to generate investment recommendations. Some say that technical analysis is more than science.

In principle, technical analysis is a way of investing in investment instruments, which uses historical data on other market indicators to increase stock prices and other devices, volume and investment decisions. happens. This analysis can be applied to stock exchange, foreign exchange market, alien exchange or any market whose prices influence and demand movements.

If the basic analysis uses more corporate indicators to analyze the stock value of a company, unlike, stock market analysis and other devices use more market data. Since market data is usually presented in graphics, it is more likely to engage in such graphics than in comparison to financial statements issued by technical analysts. Therefore fans of this flow often receive charity as a charity.

In the past, the purpose of stock technical analysis, using prices, supplies and demanding figures, is how the future demand and supply are done, and analyze stock prices that can be created by it. This is why the stock price movements have to be identified once again or identifiable and then exploited for springs. Technical analysts also believe that due to the existence of new information in the market, the process of changing stock prices will have to follow a specific trend. After finishing these things, technical analysis is used when availing profit (profit), reducing damages (cut loss), starting stocking or starting positioning (wait and see) .

Basic analysis and technical analysis, which is a better? Technical analysis error rate is relatively high compared to basic analysis. But, if we are administrators and use the right tools, stock technical analysis may be equal to basic stock analysis. Buying less sales in principle, buy cheap sales expensive.

Analysis of stock prices and trade volume is the main source of stock analysis of stocks and graphics are a source of data to show. The volume of the commercial volume will be used to evaluate the market conditions and predict future pricing trends. Stock prices change or decrease will usually be associated with the increase or decrease in the commercial volume. After a very large volume of sales, a specific pattern reduction in the pattern will usually be translated, which will experience the market (stock deficit).

Technical analysis of stock market use more. Therefore, technical analysts prefer to pay attention to the movement of stock in stock instead of seeing financial statements or instead of reading newsletters about issuing news stories. Their job is to discuss the changes in stock prices, to learn how to think or think of other parties involved in the exchange. Analyzing the stock price, they expect hearing price movements through the data presented in Form graphical (charts).

Pattern identification of a tendency or stock value movement is the main objective of a technical analyst, with the hope to buy, hold or sell signals. There are only a large number of stocks to analyze the technical analysis, i.e. the value of transaction (or other devices) in the stock and value of transaction. Technical analysts prices are in four categories: opening price, highest price, low price and closing price.

We all believe that stock prices can grow slowly or slowly and slowly slow down so that these peaks can be formed or flat on the chart. In the attempt to analyze stock prices and the trend of change in stock price, charts are directed by two important ideas. First of all, prices run on a particular trend and others, the trend will continue until the trend changes.

The Double Bottom and Top

The Ascending and Descending Triangle

Shares are owned by the business. If you buy or sell a portion of the company's shares, then your company and you have a claim on the revenue of the wealth and company. Owning business shares at this time, you will have the opportunity to become one of the biggest companies and big auctions in Indonesia, such as PT. Indosat, P.T. Gudang Garam, PT. Astra International, and others. As a boss, you have the right to vote in the meetings of shareholders. So you have the right to participate in the company's policies / commissioners / commissioners, and to share in the company's share of profit known as distribution or distribution.

There are still many people who are very dangerous in investing shares in stock. Fear to choose a wrong stock, they prefer investments that they are safe to think. Understanding the stock and insurance of stock companies, such as financial statements, corporate conditions and others, is important for your successful investment. Any information about your shares that you choose from security institutions, you choose or know the information in newspapers or magazines.

When you buy one of the shares listed in the stock exchange, you become one of the company's owners. When the company's performance gets good, you will get the benefits of profits like profits and your share of shares. But the company's performance is bad, the cost of your investment will be reduced.

As described above, the way you invest your parts should contact any of the security institutions that are members of the stock exchange. Before you decide which security company will become your broker, you should first contact several securities companies and compare the services and fees they offer. Your choice on a security company is on a lot of service you want. Do you expect Securities Company to process / execute your security only, or you expect investment advice, or you also expect Securities Company to manage your portfolio.

If you have chosen a securities company, some of them are able to talk:

Opening account Usually a securities company will be asked to you as a potential customer to sign a new account agreement. For this, you should study the information contained in this document because it contains your rights and responsibilities that have an account holder. You will be honest with your investment goals and your personal financial situation, your income, overall wealth and investment experience; Sales representative will provide investment recommendations based on this information.

Who is the judge who will control your account? Whether you own an investment decision or you submit your securities company (Optional Authority) decision. In Optional Option, the security company will make an investment decision according to your consultation, without prior consultation about the price, stock type, amount and sale / time of time.

Local bond owners can buy insurance for them. Despite the fact that municipal bonds are considered very safe, some investors are easier to sleep if they know that their investments are also protected against losses. A competent investor should understand the mechanisms of insuring municipal bonds, knowing their advantages and disadvantages, to get the right choice: to buy municipal bond insurance or not.

Municipal bonds are debts incurred by states, municipalities or municipalities to provide financing for public projects and services, such as schools, hospitals and housing. Regional bond insurance is an insurance policy, the subject of insurance is a bond, and the insurance company (the person selling the policy) is a private insurance company.

Like other bonds, municipal bonds have certain risks. The main risk is the risk of default - the issuer's refusal to pay. The default means that municipal governments that issue bonds do not have enough funds to ensure timely payment of all bond payments.

When issuing regional bonds, future project revenue that finance the issuance of bonds can also be used as collateral. Thus, the added risk of such bonds is the possibility that this particular project will not work and can not provide sufficient revenue streams for timely payment of bonds. Insurance gives investors confidence that no matter what happens, interest and principal debt on the bonds will be paid in full and on time.

If a bond has a low risk of failure, then it is given a high credit rating, which positively affects its market price. In addition, a higher credit rating will receive bonds, where there is insurance. As a rule, the insured bonds get the highest possible credit rating: AAA. A higher credit rating allows the local government to issue lower interest on the bond when issuing it. 

There are four major institutions that assign credit ratings to bonds:

Regional bond insurers also increase their market appeal. In addition, insurance helps investors to seriously look at small municipal issuers that are unknown to the market or do not issue bonds quite often.

The guarantor company guarantees investors in local bonds that the interest and principal payments on the bonds will be paid in full and on time, if the issuer can not do so. In the event of a failure, the insurer makes all necessary payments to ensure that the investor receives all such amounts due to them. This warranty usually applies to all periods of the circulation of the bond and can not be canceled by the insurance company. Exceptions to this rule apply only to investment trust. In the case of investment trusts, bonds can be insured for the entire period of their circulation or for the life of the trust itself. Insurance companies usually insure local government bonds with only BBB or higher rating. Insurance policies can be written off to municipal bond funds.

On the initial placement of the local bonds, there may be a condition known as "demand for depreciation funds". To settle the bonds payable, the local government must make regular payments to the holders of special depreciation funds. Regional bond insurers also include these depreciation deductions, ensuring that the funds remain up to date and no payments are missed.

Before issuing insurance to municipal bonds and offering them to investors, the bonds are bought by an underwriter, who in turn collects insurance and sells it to investors. Underwriting is the process of assessing the risks associated with bonds made by insurance companies. In the underwriting process, the insurance company decides whether to provide insurance for the issuance of these bonds and on what terms. Most of the companies that include local bonds are mono-food companies. This means that the company only issues insurance only on debt instruments, thus eliminating risks arising when insuring other products or services. This insurance company gets a careful analysis by the same rating agency that gives credit ratings on the bond itself.

Once the bonds are insured, their indicators are carefully monitored by the insurance company. This process is known as "observation". Under scrutiny, the insurance company carefully examines the bond issuer's financial statements and tries to ensure that the issuer's credit worthiness will be considered stable.

After underwriting, which takes about a month, the bonds are rated new. They are also given a special identification number, known as CUSIP. CUSIP is used to identify security when traded on the market or paid off.

Issuers of regional bonds must pay insurance premiums for insurance companies to issue insurance on their bonds. Despite the fact that investors do not pay these premiums directly, the fact that investment companies and issuers pay them, means these fees are transferred to investors. Transfer mechanisms usually lower the interest rate on bonds. Issuers are reducing interest rates, taking advantage of the fact that insured bonds now have AAA ratings. As you know, for the bond with the highest rating, the interest rate is slightly lower than the bond with the lower rank. The higher the risk of bonds, the lower the credit rating, the more investors who want to take this risk when buying this bond. In order for the insurance process to make sense for the issuer of this bond, the amount of savings from the interest rate reduction should be higher than the amount of insurance premium paid to the insurance company.

Insurance from municipal bonds does not in any way guarantee that bond market prices will reach current or future levels, because even insured bonds remain exposed to the effect of changes in interest rates on the market. Thus, the bonds sold before redemption may be worth less than the purchase price or the value.

Most municipal bonds are insured by several large insurance companies. The largest insurer of government bonds in the world is the Association of Municipal Bond Insurance (MBIA). MBIA provides financial guarantees, provides investment management services and a host of other financial services to the population, private and nonprofit organizations.

The other major players in this market are the American Corporation for the Insurance of Municipal Bonds (AMBAC). AMBAC guarantees local government bonds and structured debt products. He is also the legal successor of the oldest government bond insurer, which first insured the first problem in 1971. AMBAC became a subsidiary of Citibank in 1985 and made an initial public offering in 1991. In 1995, AMBAC and MBIA established an international joint venture called MBIA-AMBAC International.

Since 1984, the Financial Guarantee Insurance Company (FGIC) has issued insurance for more than 13,500 local government bonds. The FGIC also provides the necessary public authorities of financial services, such as provision of credit resources and direct investment in projects. Municipalities can also ensure their bonds in a number of small insurance companies specializing in this market.

Insured country's bonds have a higher credit rating. They are one of the most reliable investments. If the issuer of the bonds defaults, the main debt under the payment of bonds and interest will be given by the insurer. However, this insurance has a price - lower interest payments. The decision to buy or not guarantee municipal bonds depends on your risk appetite - are you ready to forgo future profits in exchange for additional coverage? If so, then you should definitely consider buying exactly the insured municipal bonds.

Stock as an investment tool can be seen from all sides. Stocks are traded daily in the daily market, so the market depends on the mood of the market. A real stock company is a property sign, can be seen as an item. Every day we allow a wide range of trades to profit by selling and selling at the right time. If we look at it, we offer ourselves as traders. There is no doubt that many traders benefit from this way.

But if we want to be a cleaner and want to see the stock as a business property, then before starting investing in stocks, we should know how the company's business is in progress. If we can benefit from trading, why should we disrupt basic stock analysis? However, looking at the charts, we can also benefit. One thing to keep in mind, in the short term, the market is a voting machine, while long term, the market is a weighing machine. What does it mean?

Soon, the psychological condition of market participants will change frequently. News and information about the upcoming day will impress the traders' sentiments and impress their idea of ​​a possible stock. Experts will be able to take advantage of the psychological condition of market participants and generate profits. Because in a short time, stock prices vary according to the trader's behavior. Therefore, in a short time, a voting machine is called.

What happens in the long run? Due to a very unstable stock, in the end, it will create the difference between the company's stock and the stock trading value done behind this company. As a result, the shares will go bankrupt according to company performance. So for a long time, the market weight machine is called.

If our fundamental investment base in stock is to analyze the business behind it, then we have to do a basic analysis. The basic analysis itself is very broad. A business must be influenced by compulsory external conditions (economic conditions, level of competition, government regulations, and industrial measures where the company is located).

However, a well-organized company will be able to offer changes in external conditions. The company's approach is to deal with the various weather conditions they apply. How do we know about it? A reliable source is their annual report. In the annual report, the management company will report its performance, face the challenge, the strategy to improve its business, and it may be financially. In short, we can begin to understand business by reading the annual report.

Therefore, I call corporate analysis as the core of basic analysis. The basic external conditions will always change, but the company's ability to offer them is more important.