Discuss RoboForex.com

[RoboForex Contest]

Dear traders!

This week, as always, the ContestFx project continues with the following competitions:

The 117th competition of "Demo Forex" is now running in the second week.
The 289th competition of "Week with CFD" has started today.
At 12:00, December 16th, 2020, starts the 422nd competition of "Trade Day".
At 20:00, December 17th, 2020, starts the 339th competition of "KingSize MT5".

All of our winners receive funds to their real accounts as a reward and they can use this money to perform full-fledged trading operations in the Forex market without investing their own financial savings required as an initial deposit.

Join Us!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Invest 1,000 USD? Three Versions for Beginners

Author: Andrey Goilov

Dear Clients and Partners,​

A bank deposit will not bring a lot of profit from 1,000 USD; the profit is unlikely to cover up for inflation even. The first thing that comes up in your mind is marginal trading. It allows opening trades for sums much larger than you have on your deposit. Leverage is most often used in the currency market, however, it requires the knowledge of tech analysis and constant monitoring of what is going on. Also, leverage entails additional risks for the investor.

Our blog is about trading, so let us try to make up our mind about investing in risky assets and whether you can make money there, or whether it is better to invest your 1,000 USD conservatively.

Investments in cryptocurrencies

Among super-profitable ones, crypto investments have become trendy. The price for such assets has been sky-rocketing for the last three years. However, after incredible growth, cryptocurrencies switched to downtrends and flats. But the uptrend managed to restore, and since this year, the price for the BTC has grown from 7,500 USD to 19,850 USD. For example, if you bought the Bitcoin for 1,000 USD at the beginning of 2020, you could receive 2,500 USD today, which makes 1,500 USD of profit.

Today, people are investing in cryptocurrencies again. A company that heated the market tangibly is PayPal that made storing and buying crypto possible for citizens of the USA. In the company, they say that the demand for such services turned 3-4 times higher than expected. Investment funds are also considering cryptocurrencies as potentially profitable and add them to their strategies.

Investments in gold

We have discussed investing in this precious metal in the article “How to Invest in Gold?”. The easiest way was, again, investing in CFDs. Such contracts allow for buying and selling gold without purchasing it physically, just making money on the difference in the prices.

At the beginning of 2020, gold cost 1,550 USD per troy ounce. In August, the quotations reached a high of 2,072 USD; currently, they are trading at 1,846 USD. By buying the instrument for 1,000 USD at the beginning of the year, you could make a good profit in the middle of the year already. As for the long run, the pandemics might cause investors to buy gold, which will provoke another increase in the price of the precious metal.

The growth of gold is unlikely to be as impressive as that of cryptocurrencies as it is a more conservative investment instrument. Anyway, many traders these days compare gold and the BTC noting that the latter is replacing the precious metal because it is to move and pay with, and it is supported by traders’ interest.

As for the charts, the crypto prices are at their highs while the gold price dropped from 2,070 to 1,846 USD. Cryptocurrencies are more volatile while conservative investors prefer gold.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Joshevans--]

Decent broker, been using them for a while.

 

[Vlad RF]

RoboForex: changes in trading schedule (Christmas and New Year holidays)

Dear Clients and Partners,​

We’re informing you that during Christmas and New Year holidays, instruments will be traded according to an altered schedule*.

MetaTrader 4 / MetaTrader 5 platforms

Trading schedule for DE30Cash

• From December 24th, 2020 to December 25th, 2020 – no trading.
• From December 31st, 2020 to January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for other instruments

• December 24th, 2020 – trading stops at 7:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 8:00 PM server time.
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

R Trader platform

Trading schedule for GER30

• From December 24th, 2020 to December 25th, 2020 – no trading.
• From December 31st, 2020 to January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for UK100, SPA35, FRA40

• December 24th, 2020 – trading stops at 12:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 12:00 PM server time
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for US Stocks, ETFs, CFDs for US Stocks and ETFs

• December 24th, 2020 – trading stops at 7:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 8:00 PM server time.
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for CFDs for EU Stocks

• From December 24th, 2020 to December 25th, 2020 – no trading.
• From December 31st, 2020 to January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Trading schedule for other instruments

• December 24th, 2020 – trading stops at 7:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 8:00 PM server time.
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

cTrader platform

Trading schedule for all instruments

• December 24th, 2020 – trading stops at 7:00 PM server time.
• December 25th, 2020 – no trading.
• December 31st, 2020 – trading stops at 8:00 PM server time.
• January 1st, 2021 – no trading.
• January 4th, 2021 – trading starts as usual.

Please, take into account these changes in the schedule when planning your trading activities.

* – This schedule is for informational purposes only and may be changed by the provider.

Sincerely,
RoboForex team

 

[Vlad RF]

How Does Gold Influence on Forex?

Author: Victor Gryazin

Dear Clients and Partners,​

Gold is one of the first metals that people learned to mine, process, and use. First gold artifacts belong to the pre-dynastic period in Ancient Egypt, i.e. about 5000 B.C. Thanks to being beautiful, rare, and durable, gold has always been used as a universal exchange means, an analog of money.

In this article, we will discuss how the fluctuations of gold quotations influence the prices on Forex.

Gold standard

The gold standard is a monetary system that emerged as a result of the wide use of gold as a universal currency. The gold standard guarantees that all the issued money can be exchanged for the corresponding amount of gold on demand. In transactions between countries that use the gold standard a fixed exchange rate of the currencies is used, based on the standard.

The gold standard that was in force after WW2 was accepted at a conference in Bretton Woods. According to the international agreement, the USA was committed to providing for the gold standard of 35 USD per troy ounce of gold. Only countries represented by their Central banks got the right to exchange dollars for gold. So, at that time the USD was really supported by gold and acquired the status of the global reserve currency.

The epoch of the gold standard ended in 1971 when the USA abandoned the free exchange of the USD for gold. The main reason for the collapse of the Bretton Woods system is the excessive quantity of dollars issued by the USA that were not supported by gold anymore. Since then, the amount of dollars in the world economy keeps growing, currency rates are set by the market, while gold is growing more expensive every year, renewing all-time highs.

This year, gold set another record, rising above 2,000 USD per troy ounce. And the growth of gold is likely to continue because the USA keeps printing dollars and pouring them into the global economy.

Which currencies are influenced by gold?

The price of gold can influence the rates of almost all currencies. Changes in the demand for and supply of gold affect the USD firsthand because the price of gold is usually given in the USD. Also, the dynamics of gold prices significantly influence those countries that produce the metal at a scale, important for their economies.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, RoboForex's project called ContestFx offers you the following exciting competitions:

The 117th competition of "Demo Forex" is running on "full speed".
The 290th competition of "Week with CFD" has just started today.
423rd competition of "Trade Day" will start on 23.12.2020 at 12:00.
The "KingSize MT5" competition will not be held this time.

For those of you who have never taken part in our contest, it will be enough to go through a simple registration procedure, after which, participation in any of the desired competitions will be available in just a couple of mouse clicks.

We're looking forward to your joining in and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How Does Crude Oil Price Influence USD/CAD?

Author: Maks Artemov

Dear Clients and Partners,​

Oil has become an intrinsic part of our lives, and humanity depends fully on it: oil is not just a source of energy but also the material from which many everyday things are made.

It has long been argued that only large corporations can make money on crude oil but this is wrong. Most types of oil are available for trading in the stock market, the most popular types are BRENT and WTI. The USD is the most widespread currency in the world, used for the biggest part of transactions. The majority of wealthy people keep their capital in the USD. The Canadian dollar is less popular over the globe. It is a commodity currency, which means it reacts actively to commodity prices, oil and gold in particular.

Today, we will discuss the interaction and correlation of oil prices and the CAD. If you look closely at the charts of BRENT and USD/CAD, you will notice certain patterns in the dynamics of the assets. As long as the Canadian economy depends on oil production and selling, USD/CAD quotations correlate with oil ones.

What is the correlation?

Correlation is the way assets relate to one another at a certain period.

There are three types of correlation:

• Positive – correlation means that two instruments are going in one direction during the observation time. The observed assets will rise or fall proportionately. The charts are similar.
• Negative – correlation means that the assets are going in the opposite direction. While one asset is growing, the other one will be declining. The charts look mirror-like.
• Zero – correlation means that the instruments are acting with no obvious relation to each other.

The CAD starts growing when the country sells its oil at a higher price. The pricier oil becomes, the better for the Canadian economy thanks to the profit it makes.

As long as in the USD/CAD pair the US dollar comes first, the correlation will be negative. This means that the growth of oil will cause a price chart of USD/CAD to fall.

How USD/CAD correlates with BRENT and WTI on the chart

On the chart, the USD/CAD pair is in a downtrend, renewing the lows. From time to time, the quotations correct but this does not take long. As a result, the US dollar loses to its Canadian counterpart.

BRENT on D1 has been in an uptrend for a month already. Regardless of a drawdown, it is recovering.

WTI on D1 demonstrates a similar picture to that of BRENT. It has been growing for a couple of months and keep recovering from all pullbacks.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Beat Greed in Forex?

Author: Victor Gryazin

Dear Clients and Partners,​

The ability to control your emotions lies at the basis of your expertise as a trader. If a trader falls prey to their emotions, they lose control over their trading. This means breaking the rules of your trading system and, as a rule, ends in losing your money.

In this overview, we will discuss what is greed in Forex and how to beat it.

How does greed appear?

Many people start trading in the hope they will get reach in a short time. This misjudgment is supported by fantastic stories of success spread by the media. You might have heard of a young trader from the US Timothy Sykes who started trading in high school and earned his first million by the age of 21. Sounds amazing, doesn't it?

However, many neglect the fact that Sykes achieved this by long and painful training, making mistakes, losing money, but perfecting his strategy, and coping with his emotions. Experiences traders know that trading provokes the strongest human feelings and passions that you need to bring under control. A bright example is greed that can lead to losses and depression if you let it rule.

Greed is an unstoppable desire to own more and more fortune. Some might say that this is all personal, and there is nothing reproachable in the craving for more. However, greed is usually accompanied by unrealistic expectations and hopes, and a lack of self-control. This becomes a large stumbling rock in the trader's way to success because they start breaking their trading rules, which leads to losses.

Also, greed increases stress and nervousness that nag on the trader throughout their work. This is a direct way to exhaustion that makes it difficult to think rationally about trading in financial markets altogether. Hence, you need to know how to detect greed in the early stages and fight.

Main symptoms of greed

Let us have a look at the main symptoms that signal the advent of greed.

Unrealistic expectations

Ambitions are great when they are rational. However, when it comes to money, one's common sense often loses the battle to greed, especially if the first couple of trades was a success. Trading on a demo account, which is where most traders start from, is peculiar in the sense that there is no psychological barrier in it — the money is not real. On a demo account, trading is fun.

That is why many over-ambitious traders rush at switching to a real account. They think that if they made it on a demo, real trading will also go smoothly, so why to waste your time on sheer practice. Their expectations are too high, they imagine how they become millionaires in a week. However, real trading quickly sobers them, but the lack of due preparation and money-management skills leads to losses.

Poorly based hopes

A poorly based hope for a profit must in no way be the moving force for a trader. Such hopes, having no real support, lead to increased risks. This feeling is characteristic mostly of beginners, who hope that their trades will for sure bring them a profit if they wait for a little.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

The ContestFX project brings the following competitions on demo-accounts to your attention:

The 117th competition of "Demo Forex" has entered the final phase.
There will be no other competitions until the New Year but in January 2021 we are waiting for you to join in these:
The 118th competition of "Demo Forex" and the 291st competition of "Week with CFD" will start on 04.01.2021.
At 12:00, January 6th, 2021, starts the 424th competition of "Trade Day".
At 20:00, January 7th, 2021, starts the 340th competition of "KingSize MT5".

Happy New Year to everyone and wish you only positive trends and profitable trades in 2021!

Good luck, Happy Holidays!

Sincerely,
RoboForex Contest

 

[Vlad RF]

Ten Most Popular Mistakes in Forex Trading

Author: Victor Gryazin

Dear Clients and Partners,​

In this overview, we will discuss ten common mistakes made by Forex traders. Knowing these mistakes in the face, you can try to avoid them and enhance your trading.

1. Bad preparation

Quite a common mistake among beginners is trading without a due level of preparation. Having listened to some basic course about trading or having read some literature on their own, a trader rushes at real trading in the hope to start making money at once. As a rule, the market punishes them for the haste, and they waste their deposit.

Theoretical preparations give only the basic understanding of how Forex works and how to trade in it. To learn how to make money, you need practice. In my opinion, you need no less than a year of practice (preferably under the guidance of an experienced trader) on a demo or small real account before you start applying your knowledge to serious sums.

2. Unsystematic trading

A trading system is the main instrument of a trader that makes his advantage in the market and helps them earn money stably. In other words, this is a certain set of proven trading rules that helps to make a profit. Any system, of course, can cause losing trades but the overall result (during a month, quarter, year) must be profitable.

However, if a trader does not have a neat, clear, and proven trading system, and they make trades chaotically, sooner or later they will lose their deposit. Forex never forgives careless trading: if you trade without a system, there are more chances that you will lose than gain. You still can make a profit on random trades but your luck will come to an end once. In the long run, you can only succeed with the help of a reliable trading system.

3. Following other people’s advice

Another mistake of beginners might be following other people’s advice blindly. There are plenty of advisers on the net that will always tell you how to invest “correctly”. However, not all of them are necessarily successful trades, and anyway, you will not last long on other people’s wit, you need to have your opinion.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team