How to More Accurately Predict Bond Price Trends?

If you often trade in a stock market, you may be a little surprised that in bond trading market, you will not find a central exchange. Luckily, the whole process is comparable to stock trading.
The first step in trading in bond market is to get a brokerage account, it can usually be obtained in bond brokers, but if you have no time to search your city for one, they are usually available online, as always Google is your best friend. Just make sure the broker you choose online has a good reputation, it would be even better to get a broker based on recommendation of friends and family members.
That’s an easy part, unfortunately bond trading is much more complicated than that. Just like foreign exchange, bonds have buy and sell price, it also have a small amount of interest rate. Buying a bond will entitle the bondholder or the bearer to pay the principal when the maturity is due and the interest must be paid twice each year.
The price of bonds fluctuates just like stocks. The earliest price and the interest rate are determined during an issuance. And just in a few hours, they may have different price. When predicting the trend of bond price you should consider that it is influenced by the movements of bond price in the whole market.
In many cases you will see that the bond price tend to rise when CD, bank loans and real estate loans have an increase in interest rate.
Just like in other fields of economy world, you won’t see anything that is certain. Even when all the factors seem favorable, you may see an unexpected decrease of bond price. But still those factors are should considered as things that would increase the probability of bond price direction. Going against the current all the time would be foolish as there is a bigger chance that the bond price will drop and you only get less profit than expected. Investing in bonds is a safe way to slowly increase your asset, as always, measure your profit against the inflation rate during the life of the bonds, because a safe investment tend to have smaller profit.