5 important things to know about the Right Issue in the capital markets

An investor or shareholder is the owner of the company, so investors can have a number of specific rights and one of them was the right Order of effects in advance in corporate actions right issue. Rights in these capital markets is obtained stock owners to buy new shares in the period and the price is already determined by the company.

1. The reason Companies do the Right Issue
Basically, the reason companies do the right issue is to raise funds for additional capital again. The company usually right issue is still in the stage of high growth and the fresh funds gathered be used for business expansion, paying the loan, or for working capital. If the right issue was carried out for the purpose of business expansion, the company's corporate actions can then be viewed positively.

Some companies do the right issue with the aim to increase the share of ownership of the shareholders or increase the number of shares outstanding in order to later become more liquid. In addition, the company could also right issue so that the market capitalization of the company become bigger. Right issue is actually almost similar to stocksplit, but does it matter if the right issue could add funds from investors at once can increase the market capitalization of the company.

2. Benefit Right Issue
Remember the purpose of a company doing the action of the right issue is to raise additional funds, then the benefits of the right issue for the company is able to use these funds as a source of new venture capital in addition to a loan from the bank. This can only happen when there is a weakening of the economy and makes the company's difficult borrowing funds from the bank.

Meanwhile, the benefits of the right issue for investors shareholders the company is the exercise price of the new shares right issue offered usually are given a discount because it is below the market price. The price difference of execution and the stock price in the market sometimes quite significantly and depends on how large of a company it wanted to encourage investors to participate in its corporate action.

3. The negative side Right Issue
Corporate actions right issue the company is generally not favored by investors because it will give negative impact on investors ' shareholdings. This happens because the right issue will cause the shares of issuers experiencing dilution. Stock dilution is a decrease in investor stock ownership composition resulting from the presence of the addition of the new shares.

The issuance of new shares it would be detrimental to the stock investors if this investor does not do anything because the percentage of ownership of its stake reduced.

4. Things to do before ordering Effects in advance
When the company decided to do the right issue, the number of shares the company will grow. If the number of shares of the company that does the right issue was increased and the funding that goes to the same company with the stock market, then the dilution does not occur until the action of the company for the right issue is not detrimental to shareholders.

5. Mechanism of Right Issue Issuers
The mechanism of implementation of the right issue a issuers typically begin with the announcement of the company's important things related to the following:

Plan The Use Of Funds
An announcement in this regard is very important to spread to stock investors so that investors know the purpose of right issue issuers. Shareholders need to be vigilant in the use of funds plan right issue is to pay off the debt. Usually the company was having difficulty in doing the payment of debts and can't borrow money from financial institutions. This condition could potentially cause stock prices to fall. On the contrary, if the company will utilise the funds results right issue for business expansion then step right issuers issue will most likely provide benefits to shareholders, either in the form of a dividend or the allotment of its stock price.

7 Best Tips to success Using High-risk Trading Robot

Trading robot in practice using a variety of strategies when execute trading orders. These strategies have risk levels each. Generally, the higher the risk the greater revenue potential profit.

An example of a risky trading robot is the martingale strategies and averaging. With these strategies, deposit your account may be immediately drained if not careful. Therefore, that risk does not exceed the benefits, here are suggestions and tips to follow when you use automated trading systems at high risk.

1. Trading account with cents
High-risk trading robot should only use limited funds on your account Mon only. If a trader uses a standard account (1 lot = 100.000 units), the threat of each position to touch the limit margin call will be very high, if the resilience of capital is not big enough.

At least, with the lot size small, high-risk trading robots can have more opportunities to close the position above the profit loss. Once again, with losses to minimize cents account minimize the size of the lot.

2. use the maximum Leverage
Maximum leverage is needed to increase the resilience of capital. Practical, high-risk trading robot on average takes position to the floating hundreds of pips until finally can close the position with a profit. This is the reason why it is recommended to use the leverage of 1:200 above.

Technically, the high leverage allows trading robot to open the position with a value of lots as small as 0.01, although your capital limited. In contrast to the general practice in which traders thus instead open the lot value greater than 1 on high leverage.

3. Follow the instructions of usage
Usage instructions are often ignored by traders, whereas all sorts of important information listed on it. As a result, errors in operating high-risk trading robots resulted in a margin call.

Follow the instructions of usage such as recommendations for a minimum deposit, lot size, target pair, and so on. The important points to note, because the developers have really set the appropriate trading robot setting these guidelines.

4. Performance Tests using the demo account
Before using the trading robot in the real account, be sure to test performance with backtest method on a demo account. Backtest test aims to find out the indication-an indication of the performance of trading robots such as the drawdown, the ratio of profitability, the number of opening and closing positions, etc.

The backtest results, you can compare actual performance with what was advertised by the developer of high-risk trading robot. If a trader is in compliance, please test again with the forward test until at least one month on demo accounts anyway to really be sure.

5. Withdraw the profit on a regular basis
High-risk trading robot is indeed able to promise big profits, but also because of the risk of the same height, we recommend that you secure the funds in your account before trading robot of acting.

Ideally, the attraction of funds on a regular basis until a number with the initial deposit. In essence, traded funds with a trading robot, later will only use money profit results.

6. use the VPS server
Imagine when trading robot will open or close position, suddenly the internet provider doing maintenance a snap, so that the internet connection is disconnected. Due to the personal use of the internet, obviously you will suffer losses due to the trading robots could not complete its task.

That's the reason why a VPS server is the best medium for trading robot. That way, you don't have to worry anymore because of unstable internet VPS servers operate 24 hours nonstop.

7. Trading with low spreads
Trading account with low spreads his law is mandatory for trading robot automated trading systems, especially with a multi position strategy. When trading robot mounted in an account with low spreads the more positions opened, the smaller the costs of dependents.

Ideally, the floating spreads start from a fraction of a pip (0.1 to 0.5). With the value of the floating spreads, trading robot can adjust easily, can open positions at any time without great cost burdened.

How to Easy 5 minute Scalping Technique

Scalping techniques is essential for traders, let alone the new traders who are looking for scalping system reference. We will discuss this in the article on scalping technique this time around. It is strongly recommended to try on a pair that have a low spreads such as gbp/usd eur/usd &.

Required indicators:

1. Exponential Moving Average – > > Period 10
2. Exponential Moving Average – > > Period 21
3. Exponential Moving Average – > > Period 50

The usefulness of the indicator EMA 50 as the referrer to see which trends are strong at the time. While the indicator EMA 10 and 21 EMA as outline form support and resistance. We will use two of the EMA as a level to locate signal entry.

The best time for trading using this system is when the London market sessions open and also the New York session when markets open. Because the markets are on a session normally pair GBP/USD and EUR/USD will form the trend. You should not trade when the Asian market because it will be a lot of false signals.

Before opening an entry position, this 5 min scalping techniques only taking or looking for its target 5-10 pips anytime.

How to use this technique is very simple. You only need to monitor the lines on both the EMA, while the EMA50 as steering the trend.

When an uptrend or the inclination of the trend to rise, then the market will establish a High-low in zig-zag. Take a look at the example image below, beriku open position buy at a time when the market moves up.

Remember don't be too greedy, we only need to take 5-10 pips. Keep your trading spikologis, do not obey the lust that will result in a loss for you. Us open entry at the time of price support and resistance levels touched the EMA 10 and 21.

Srategi Forex Trading Without Indicators

Many of the forex trder said extremely difficult trading tanpamenggunakan indicators, in fact without using any indicator we can do forex trading.
According to his understanding of the indicator is a tool for mapping the conditions of the market and the direction the market further so that traders who use them can take the decision to make a transaction or wait.

Numerous factors are causing traders accustomed to not use indicators.

1. a fundamentalist so he trading without using technical indicators, but rather predicted by way of analyzing the fundamental news.

2. a blind trader. is trading using mathematical logic and statistics so that it does not require technical analysis to find the entry point.

3. the Teknikalis trading just by reading the graph to predict the direction of the market.

From some of the above factors you may just be one of them. But if not and you want to be one of them, it is advisable to learn a teknikalis trader system only analyze the charts to determine the entry pointnya in the already mentioned above in point 3

We will discuss the few ways predicted just by reading the graph without any other indicators?

Teknikalis believe that the market's movement is repetitive. So to be able to see movement next you should see movement in the period before that was almost the same as the current conditions


To get it you can try by observing the movement of the market in a small time frame e.g. 15 minutes for at least 3 months without you trade.

Conclusion try within 3 months you just so observer movement market. Thus you have the memory and memorizing the movements of the market that can be used to predict the direction of the market.

If you are accustomed to and could feel the flow of movement of the market, you can apply it in day-trading day. You can select the entry point just by reading the chart. that's the forex strategy without the easiest indicators to do

When this indicator tarding without Strategy is not appropriate, you should remember that the losses could be minimised even eliminated with money management.

NFP Simple Trading Strategy

As one of the popular event for News Trading, there are a variety of trading strategies NFP (Non Farm Payroll) being run by the trader. Most people hide her strategy, but there are also some publish it, so that it can be a guide for the other traders who do not yet have a strategy trading NFP potent.

Among traders who publish trading strategy NFP is Cory Mitchell, a member of the technical analysts Association of Canada that has been trading since 2005 and manage site Vantage Point of Trading. How trading strategy NFP ala Cory Mitchell?? We will review here.

Setup A Trading Strategy For NFP

NFP trading strategy is set aside for the currency pair GBP/USD chart 15 minutes (M15). According to Mitchell, M15 chart allows volatility beginning to shrink, while still opening the opportunity for us to capture the movement of potentially great when market participants make a more rational decision about whether they will buy or sell based on the news of NFP that just came out. The rational trend that followed after that initial surge is the trend that seeks to be caught with a setup this NFP trading strategy.

Pair EUR/USD could also be used, but because of the GBP/USD typically have daily range greater than the EUR/USD, then the chance of more potential. Chart 15 minutes can also replaced the 5 minute chart, but it will be very prone to false signal.


The Rules Of NFP Trading Strategy

1. Don't do anything in 15 minutes after the announcement of the NFP. A large candle will appear on the chart between the hours of 8:30 am-8:45 AM EST, but you don't need to bother the cadle.

2. Wait until the appearance of the Inside Bar. Inside the Bar here is a 15-minute candle where the High and Low level entirely within the range of the previous candle.

3. high and low Levels are present in the Inside of the Bar will be the trigger (trigger) in the NFP trading strategy. If the price rises to the top level high on the inside bar, then order buy. If the price fell to below the low level on the inside bar, sell order.

4. Place a stop loss at 30 pips from the starting position, or below the last low level if you do order buy. However, the stop loss should not be more than 30 pips.

5. Exit the positions about 4 hours after entry or a maximum at 2:00 PM EDT. Once started, the trend usually lasts about 4 hours, so if your entry at 9:15 PM for example, then exit at 1:15 PM EST. However, at 2:00 PM EST, you should exit from this trading post position NFP, because other factors will start to affect price movement , while the NFP's own influence had already been wiped out.

6. do not make more than 2 positions of the trading post of NFP. If you still got the stop loss after trading opened position 2 based on your trading strategy this NFP, means price movements too random (on choppy). This tactic to save event data release of Non Farm Payroll the next, or the publication of other high-impact data.

7. The last step, you can also apply a trailing stop or the like to prevent loss of profit if the sudden trend turned around after the trading opened position. However, it is not required. Trailing Stop is only a complement for NFP trading strategy. Along with the progress trend, slide the stop loss to the low level or high level.