Everything in our life carries risks no matter how negligible they are. Bonds trading although considered as safe investment also carries some risks. For example, although bondholder have bigger priority compared to shareholders, but when the company filed for bankruptcy, there would be no fund available to pay for the bonds at their maturity.
Bonds are safer because the worst that you can get after years of investment is only the principal (in the economic sense, this is still a loss because your money depreciates with inflation rate through the years). It is a common principle in the economic world that lower risk means lower profit, but luckily you can still employ a reputable bond brokers, which have long experiences in giving you more profit than loss. Many investors in bond trading use Moody and; Standard and Poor (S&P).
Both firms use unique formulas that are based on their experiences with the biggest chance of predicting the bond price trends. They have categorization of bonds based on their risk scale, for example very safe bonds are called “Moody” and very risky bonds are called “junk bonds”
Beginners in bond trading should spend about 2-3 months learning about past bond movement histories and try to simulate the current bond price movements based on the known factors and their knowledge. After someone has an idea how a bond price move, it would be safe to immediately dip their toes and start easy. Just like in stock markets, novice bond traders may rush too quickly and ignore about learning the ropes of bond trading. There are several simulation tools online for bond trading, which allow you to rehearse in bond trading without actually spending money save for the fee of using the simulation service.
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