Trade12 - Big, Strong, Reliable, and Word Class

Big, strong, reliable and world-class

Trade12 is a worldwide brokerage brand by Exo Capital Markets Ltd. This dependable organization, lead by a group of remarkable people with many years of involvement in the field, is thoroughly consistent with the careful principles and standards of (money) financial stability, and in addition, the legitimate services and  air-tight security of assets and funds. You do not really need any special rocket science classes to start earning consequence of how simplified the platform is.

Trade12 Review Logo

Trade12 Logo

Read more about Trade12 is the platform that will give you a free lifestyle.

Trade12 is an extraordinary online based trading brokerage organization that works with a goal to advance reasonably and also  project world-class trading condition for people who are into web based or online trading. This organization, through years of service and professionalism, has devoted its endeavors keeping in mind the end goal to help their clients and traders.

Exchanging Assets with trade12

Customers who are trading with Trade12 can trade through with an extensive variety of trading resources utilizing both desktop and cell phones. It’s that flexible.  The brokerage gives its customers a chance to trade more than 50 currency pairs in combination on its platform, including all majors, minors and exotic currencies. For these currency pairs, spreads begins at 0.8 pips for EUR/USD, AUD/USD and EUR/CHF and 1 pip for GBP/USD pair. This forex broker likewise gives a leverage as high as 1:400 on currency trade.

Metals:  Trade12’s client can utilize the MetaTrader 4 platform to successfully edge their positions. They can use this platform to trade on Spot Gold and Silver, while simultaneously taking an inverse position on the US Dollar.

CONTRACT FOR DIFFERENCE (CFDs): Trading with Trade12 gives traders an advantage to exchange on different asset types.  They could use a solitary platform which incorporates stocks making speculation easy and exact.

The trade12 audit is a remarkable online trading business organization. It works with a goal to advance a secure world-class trading conditions for people who are into online based trading. This organization, through years of dedicated service, has committed its endeavors towards helping the merchants to accomplish their financial goals.  Our ever increasing client data base and positive  review and testimonies should rather be a more realistic conviction. Visit our web site today for more details. You’ll discover that Trade12 is simply big, strong, reliable and world class. Ultimately designed for your abundance and enterprise with a  style of convenience in mind.

 

You can earn bigger profits and execute better trades here at Trade12 by reading the latest market updates. Striving to become the best forex broker for you, Trade12 review daily market events essential to your trading activities to help you improve your overall trading performance. Register an account now and enjoy a wonderful trading experience!

Trade12 - The Basics of Support and Resistance Indicators

The Basics of Support and Resistance Indicators

One of the most important decisions of every investor is identifying the right time to buy and sell their assets in the market. Fortunately, there is a common way of determining this. Technical analysis, which includes analyzing historical data in order to predict future price movements, holds a certain concept that could recognize potential market timings. This concept involves making use of support and resistance indicators.

What are support and resistance indicators?

Support and resistance is a concept applied in technical analysis that focuses on analyzing the price movement of a security. It shows the tendency of the market trend to stop and reverse at certain preset price levels. These levels called “support” and ‘resistance” levels are denoted by repeated marks of a certain price in the trend without a breakthrough of the level.

Trade12 - What are Support and Resistance Indicators

Support level – is a level where the price tends to find “support” in a falling trend. It acts like the floor which prevents the price from falling further. As soon as the trend hits the support level, the price is more likely to bounce back to a reverse direction instead of breaking through it. However, there is still a possibility that a support level is breached and will likely to continue falling until it hits another support level.

Resistance level – is same as the concept of the support level, but in a different direction. It is a level where the price tends to find “resistance” in a rising trend. It acts as the ceiling which prevents the trend to rise further. Again, this means that as soon as the trend hits the resistance level, the price is more likely to bounce off towards a downward direction instead of continuing the rising trend. There is also a possibility that a resistance level is breached and is likely to continue rising until meeting another resistance level.

Support and resistance levels can be identified using trend lines or by using pivot point calculations. A specific level becomes more significant as it is more often “tested” by the trend.

If a price breaks through a support level, that certain level often becomes a new resistance level. The opposite is true as well. If the price breaks through a resistance level, it ends up finding support at that level in the future.

Investors often use the concept of support and resistance in entering and exiting a trade. A basic investment strategy is to buy a stock at a support level and then sell it at the resistance. Short sellers also use this strategy by shorting at a resistance level. Afterwards, they cover the short once it reaches a support level.

Trade12 - 2 Types of Support and Resistance Indicators

2 types of support and resistance indicators

The first one is the proactive method. Proactive support and resistance methods aim to predict the levels, often in areas where price has not actually been. They are based on analyzing the current price action to predict the future price action. Some of the methods to determine proactive support and resistance levels are measured moves, swing ratio projection, trend lines and moving averages, etc.

The opposite of proactive is the reactive method. These indicators form directly as a result of the current price action and volume behavior. Some methods of determining these levels are price swing lows/highs, certain candle patterns, volume profile, open gaps, etc.

Bottomline

Knowing how to recognize support and resistance levels plays a crucial role when it comes to making trading decisions. It helps in identifying the right time to buy and sell a security through technical analysis. Even if support and resistance levels are merely speculations, having a solid strategy in understanding the market trend is still better than blindly making major trading decisions.

Stay updated on market news, trends, and tips by regularly visiting Trade12. It is a reputable online trading broker that offers tight spreads, flexible margins and high leverage. Read about Trade12 reviews to ensure you trust only the best. Register an account now and enjoy a wonderful trading experience!

Trade12 - A Glimpse on the Controversial Efficient Market Hypothesis

A Glimpse on the Controversial Efficient Market Hypothesis

For a number of years, it has been a huge debate among stock market investors whether the market is actually efficient – that is, whether it fully reflects all available information through the current stock prices or not, thus opening the possibility for undervalued and overvalued stock prices. In this article, we are going to talk on what efficient market hypothesis is all about.

Trade12 - What is Efficient Market Hypothesis

What is Efficient Market Hypothesis?

Efficient Market Hypothesis or EMH is an investment theory developed by Professor Eugene Fama in the 1960s. It concludes that the market consistently operates efficiently. The theory states that it is impossible to “beat the market” because the current share prices already fully reflect all relevant information about the shares.

According to the EMH, stocks always trade on stock exchanges at their fair value, thus making it impossible to buy undervalued or overvalued stocks. It also states that it is impossible to outperform the market by expert stock selection or market timing. The only way to get high returns from the market is by purchasing riskier investments. The theory implies that you’re engaging in a game of chance each time you buy and sell securities.

For years, EMH has been a cornerstone of modern financial theory, but it is highly controversial and often disputed especially since a lot of investors like Warren Buffet have proved to consistently beat the market over long periods of time.

However, supporters of the EMH model still believe that it is pointless to search for undervalued stocks or to predict the market trend by doing fundamental and technical analysis. They conclude that investing in a low-cost, passive portfolio is the only best way to get the upper hand in a volatile market.

Read more about the truth behind who’s controlling the market prices.

Trade12 - Variants of the EMH

Variants of the EMH

Weak form – assumes that the current stock prices fully reflect all currently available market data. It also states that the past prices and volume information don’t have any connection to the probable future direction of the security price. This form concludes you cannot achieve excess returns through technical analysis.

Semi-strong form – assumes that the current stock prices rapidly adjust to the release of all new public data. It also states that security prices are taken from available market and non-market public information. This form concludes that you cannot achieve excess returns through fundamental analysis.

Strong form – assumes that the current stock prices fully reflect all public and private data available. It states that market, non-market, and even inside information all contribute to the prices of the securities. No one has sole exploitative access to relevant information. The strong form assumes a perfect market and concludes that excess returns are impossible to achieve consistently.

Conclusion

Despite the thought that the market always operate efficiently, in reality, it does not consistently behave that way. Believers of the theory could not come up of any explanation why the market goes through periods of volatility. Another deterrent of the theory are the countless times when investors prove to the possibility of beating the market. Despite these, the efficient market hypothesis still remains a prominent theory in financial economics.

Read more about market volatility.

Stay updated on market news, trends, and tips by regularly visiting Trade12. It is a reputable online trading broker that offers tight spreads, flexible margins and high leverage. Read about Trade12 reviews to ensure you trust only the best. Register an account now and enjoy a wonderful trading experience!

Trade12 - Getting to Know Fixed Income Investing

Getting to Know Fixed Income Investing

Whether you are planning to save up for retirement, open up a new business, or simply have a stable source of extra income – each investor has their own reason for investing. It depends on their needs on how they would invest their money and which investment would be the best for them. In this article, we are going to talk about fixed income investing.

What is fixed income investing?

Fixed income investing or fixed interest investing is an investment method that focuses on generating cash flows from investment holdings instead of making capital gains. Investing using this strategy focuses on finding securities that have regular fixed returns, as well as a guaranteed principal. These securities may include holdings such as stock dividends or preferred shares, bond interests, or similar types of accumulating cash flows.

The aim of this strategy is to invest in companies that provide a steady stream of income or in stocks that pay solid dividends.

Read more about generating profits from dividend stocks.

Trade12 - Fixed Income Investments

Fixed income investments

Unlike growth investing, most income investors focus more on older, well-established companies, which have reached a certain maturity level and are no longer able to sustain higher levels of growth. These companies generally stopped rapidly expanding their business. They choose to pay out retained earnings to provide some returns for their shareholders rather than reinvesting their earnings into themselves.

But fixed income investing is not only about finding companies that pay high dividends. It is more about finding firms that generate a high dividend yield. Dividend yield measures the actual returns that a dividend gives to the shareholder. It is calculated by dividing the annual dividend per share by its price. Income investors are usually looking for a minimum of 5-6% yield per share.

The main objective of this strategy is to find companies with sustainable dividend yields that are high enough. This is in order to receive a significant steady source of income over the long term.

Another aspect that income investors are looking for is the company’s dividend payout history. Most companies that paid dividends steadily over the past years are more likely to continue the same trend. Meanwhile, companies that showed a sudden over-optimistic change in dividend payouts tend to become unsustainable in the future.

Trade12 - General Reminders About Income Investing

General reminders about fixed income investing

  • Investors should not depend solely on dividends on which stocks they should invest in. A high dividend doesn’t automatically mean it is a good company. Since these dividends are paid directly from the company’s net income, higher dividends sometimes result in lower retained earnings. Problems may arise when it is better to reinvest the income than paid out as dividends. That is why to pick good companies for fixed income investing, investors must look and analyze the other aspects of the company and make sure it has good and sustainable fundamentals.
  • Even if a company is mature enough to pay high dividends, it doesn’t mean that it would result to lower investment risk compared to normal stock investments. The common risks associated with equity safety still apply even to companies with high dividend yields. The only way to minimize these risks is to invest only in companies built with strong foundations.
  • Dividend payments in most companies are taxed at the same rate as wages. Because of this, the payments tend to have higher tax than capital gains, which can result to lower overall returns.

Stay updated on market news, trends, and tips by regularly visiting Trade12. It is a reputable online trading broker that offers tight spreads, flexible margins and high leverage. Read about Trade12 reviews to ensure you trust only the best. Register an account now and enjoy a wonderful trading experience!

Trade12 – Bond Basics Explained

Basics of Bonds Explained

What are bonds?

A bond is a debt investment in which an investor loans money to an entity. It is a fund borrowed for a certain period of time at a fixed interest rate. When an investor purchases a bond, he or she lends money to the issuer. The most common types of bonds are corporate and governmental/municipal bonds.

Bonds are commonly traded on major exchanges, but some are only available on over-the-counter (OTC) markets. Both bonds and stocks are securities; however, their major difference is that stockholders have equity in the company, while bondholders have a creditor stake in the company. Because of this, bondholders are usually prioritized over stockholders. They are paid first before the company pays dividends to stockholders.

Read about What is Bond Yields.

Most bonds have a defined maturity date except for irredeemable bonds, which is a type of bond with no maturity. This bond is also called perpetual bond, “consol”, or a “perp”. Its only drawback is that it is not redeemable, but it pays a steady stream of interest payments forever.

Trade12 - Key Terms

Key terms

Creditor – also called the debt holder or lender of the bond. Creditors are made up of investors who purchased bonds, which in turn are borrowed by entities.

Issuer – also called the borrower or debtor of the bonds. This issuer could be a corporation, government, or other entity. The issuer is obliged to pay back the bond principal plus the interest to the creditor at the maturity date.

Maturity date – it is the date on which the bond will expire and the bond issuer is required to pay the face value of the bond loaned. The maturity date or the time until the loaned funds is to be paid usually ranges from a day to more or less 30 days.

Face value – also called “principal”.  It is the price of the bond upon its maturity. It is the original price of the bond plus the interest accumulated over time.

Issue price – it is the original price of the bond at which the issuer originally sold the bond. The issue price of a bond is usually $100 or $1,000 per individual bond. Its actual market price depends on a number of factors including the credit quality of the issuer, the time until expiration, and the coupon rate compared to the general interest rate commonly issued at the time.

Coupon rate – is the interest rate of the bonds. The coupon is usually paid at annual or semi-annual intervals. The date of which the coupon is to be paid is called “coupon date”. The interest rate of a bond is computed by looking at the credit quality of the issuer and the length of time before the maturity date.

Trade12 - How do Bonds Work

How do bonds work?

Companies or entities issue bonds from investors instead of banks when they need to raise money for new projects, fund ongoing operations, or to pay other existing debts. These entities issues bonds at a certain price, which are then bought by investors through an exchange or on OTC markets.

The price of the bond paid by the investor would be used by the entity for its financial needs. The indebted entity or the issuer of bonds promises to pay a fixed interest rate or coupon at the time maturity date of the loaned funds.

When the maturity date comes, the issuer is obliged to pay the face value or the original price of the bond plus the coupon accumulated over time.

Importance of bonds

A bond is a fixed-income security. It pays a fixed interest a few times a year, thus providing a steady supply of profits. It is recommended for all investors to include a few bonds on their diversified portfolio to secure income from investments especially if is for retirement or savings funds.

Read more about portfolio diversification.

Stay updated on market news, trends, and tips by regularly visiting Trade12. It is a reputable online trading broker that offers tight spreads, flexible margins and high leverage. Read about Trade12 reviews to ensure you trust only the best. Register an account now and enjoy a wonderful trading experience!