RoboForex.com

Vlad RF

RoboForex Representative
Messages
185
How to Estimate Companies' Price and Make Investment Decisions

Author: Maks Artemov

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Dear Clients and Partners,

The price of a company often influences your decision whether to invest in it or not. Of course, you can neglect this property and use, say, tech analysis; however, knowing the real market price of a chosen company, an experienced investor can make conclusions about the results of their investments in the long run.

In this article, I will not focus on evaluating and analyzing companies for speculative or short-term trading. My goal is to teach you to determine the price of the company and your perspectives of long-term investments. By long-term, I mean several years or even decades. This is how known-to-all Warren Buffett invests.

Underestimated companies will always be more profitable in terms of investments because their stock price is likely to grow in the future. As for overestimated companies, their perspectives are more modest or lacking at all. The stocks of such companies might soon correct, which will lead to unreasonable losses or freeze your investments.

Estimating the cost of a company

For a complex estimation of a company's price, several multipliers can be used:

P/E (Price to Earnings) is a multiplier showing the under- or overestimated state of companies. Using the P/E multiplier, an investor can forecast when their money will pay back. The smaller P/E, the sooner it will happen. We already discussed P/E in earlier articles.

P/S (Price to Sales ratio) is literally the price of the company in ratio to its annual revenue. Unlike P/E, it can be applied to losing companies. A P/S value below 2 is considered good, and the higher it is, the worse investment this will be. An almost perfect value is one.

P/BV (Price to Book) shows the size of the company's assets minus its commitments (debts). The multiplier compares the company's capital to its capitalization in the stock exchange. A P/BV value of 1 means that currently, its stocks cost less than in the exchange (are undervalued). If the value is between one and zero, the company is overpriced. If the multiplier is zero, this means that the company is not all right, and you should better ignore this investment opportunity.

Using multipliers, investors usually compare several companies from the same sector. For the estimation, the report of the previous period, current period, and forecasts are used. By comparing the data, we can conclude which company is more attractive for long-term investments.

Peculiarities of multipliers

If you use multipliers, you need to take into account the following:
  • For new and developing companies, multipliers can be faulty.
  • You cannot estimate the company by just one index; your approach must be complex.
  • Comparing companies from one sector, take notice of their business, the number of employees, and debts.
There are plenty of resources for calculating multipliers on the Internet. See below which indices you can use on Finviz.com (the data is given for clearness).

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On the website, you can single out companies depending on their business, stock price range, and the country of registration. Mind that it is for the investor to decide which data to base their decision on.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

RoboForex Contest

RoboForex Representative
Messages
45
Dear traders!

The first week of spring already started and the ContestFx project will offer you the following competitions:

The 120th competition of "Demo Forex" and 299th competition of "Week with CFD" have just started.
432nd competition of "Trade Day" will start on 03.03.2021 at 12:00.
348th competition of "KingSize MT5" will start on 04.03.2021 at 20:00.

All of our winners receive funds as a reward to their real trading accounts, using which they can earn on the Forex market without investing their own financial savings.

Do you wanna be one of them? Join us!

Sincerely,
RoboForex Contest
 

Vlad RF

RoboForex Representative
Messages
185
How to Use the Cycle Theory in Financial Markets?

Author: Andrey Goilov

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Dear Clients and Partners,

Traders are always looking for certain patterns in the market to try and make money on them. Some want complicated trading strategies and price patterns on the charts, others assess the length and height of price fluctuations. Moreover, one can assess the probability of a decline or growth based on the price cycle theory.

You can say that cycles account for periods when certain events take place – for example, the market trend changes. A cycle of growth changes for a cycle of decline, then another cycle of growth comes. There is a view that trends take some 30% of instrument behavior, while the remaining 70% are given for flats.

Quite often we trade without orientation on the time when our goals will be reached. On the whole, time-wise price estimations are not quite widespread. However, mind that some authors clench at this theory.

Bill Wolfe, the author of the Wolfe Waves, gives an idea of how to define the time when the goal will be reached. With this, an investor knows that they will have to wait several hours or even days and does not hope for a quick profit.

What cycles are there?

Life consists of cycles. John Murphy in his book “Technical Analysis of the Futures Markets” gives examples of cycle studies from as long ago as the 1940s. Cycle studies apply to the construction, stock markets, business, etc.

In trading and investing, we have the following types of cycles:
  • Time cycles are meant for estimating price fluctuations time-wise.
  • Seasonal cycles, by which we mean noticeable price fluctuations due to weather conditions.
  • Event cycles, which means that certain events provoke certain price movements, and this behavior repeats.
Time cycles in the stock market

After the economic crisis of 2008, analysts expected the same situation to repeat itself in 2018. They claimed that the time cycle, in which a new crisis forms, provoking a massive decline in the stocks market, the growth of gold and the USD, lasts 10 years.

However, the evidence of a global crisis showed itself in 2020 only due to serious economic instability and the pandemic of the coronavirus. We can say that there happened a time lag but on the whole, the expectations were met.

The Dow Jones index dropped from 29,000 points to 18,300 points in 2020. On the chart of 2008, the decline was equally massive: the index dropped from 13,700 to 6,600 points.

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Dow Jones started growing in March-April 2008, and the same happened in March-April 2020.

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Hence, we can expect another serious decline of the index in 2028-2030, while its growth is just beginning. Clearly, you do not have to stick to these dates only: track the situation in the market and try to find confirmations of these forecasts. Keep in mind the time lag as well.

Bottom line

Every trader might have their own understanding and use of the cycle theory. Most often, investors assess the probability of certain events time-wise.

Prices go in cycles, so events will repeat themselves. You do not even need to look at the chart, provided that you have studied the behavior of the price and detected periods or events that form new cycles.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

Vlad RF

RoboForex Representative
Messages
185
RoboForex: changes in trading schedule (International Women's Day and switch to Daylight Saving Time)

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Dear Clients and Partners,

We’re informing you that due to the public holiday in Russia on March 8th, 2021, International Women's Day, USDRUB will be traded according to the changed schedule*.

In addition to that, on March 14th, 2021, the USA will transfer to the daylight saving time, while European countries will switch to the summer time on March 28th, 2021. Thereby, there will be more changes to the trading schedule*.

MetaTrader 4 / MetaTrader 5 platforms

Trading schedule on CFDs on US indices (US30Cash, US500Cash, USTECHCash) and oil (Brent, WTI)
  • From March 15th to 26th, 2021, trading on CFDs on US indices and oil will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 02:00 AM - 10:15 PM.
  • Starting from March 29th, 2021, CFDs on indices and oil will be available for trading within the operating range of the contract specifications.
Trading schedule on Metals (XAUUSD, XAGUSD) and CFDs on the JP225Cash index
  • From March 15th to 26th, 2021, trading on Metals and CFDs on the JP225Cash index will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 12:05 AM - 10:55 PM.
  • Starting from March 29th, 2021, Metals and CFDs on the JP225Cash index will be available for trading within the operating range of the contract specifications.
Trading schedule on CFDs on US stocks
  • From March 15th to 26th, 2021, trading on CFDs on American stocks will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 03:31 PM - 09:59 PM.
  • Starting from March 29th, 2021, CFDs on American stocks will be available for trading within the operating range of the contract specifications.
Trading schedule on USDRUB
  • March 8th, 2021 – no trading.
  • Starting from March 29th, 2021, the USDRUB currency pair will be traded according to a new schedule.
    Trading session (server time): 10:00 AM - 6:30 PM.
Please, note, that on March 19th and 26th, 2021, trading on all instruments, including Cryptocurrencies, will be closed at 11:00 PM server time. In addition to that, from March 15th to 26th, 2021, there might be short quoting stoppages on behalf of liquidity providers during the interval between 10:00 PM and 12:30 AM server time.

R Trader platform

Trading schedule on US stocks and ETFs, CFDs on US stocks and ETFs
  • From March 15th to 26th 2021, trading on US stocks and ETFs, CFDs on US stocks and ETFs will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 03:30 PM - 10:00 PM.
  • Starting from March 29th, 2021, US stocks and ETFs, CFDs on US stocks, and ETFs will be available for trading within the operating range of the contract specifications.
Trading schedule on CFDs on oil (BRENT.oil, WTI.oil)
  • From March 15th to 26th, 2021, trading on CFDs oil will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 02:00 AM - 10:15 PM.
  • Starting from March 29th, 2021, CFDs on oil will be available for trading within the operating range of the contract specifications.
Trading schedule on Metals (XAUUSD, XAGUSD)
  • From March 15th to 26th, 2021, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 12:05 AM - 10:55 PM.
  • Starting from March 29th, 2021, Metals will be available for trading within the operating range of the contract specifications.
Trading schedule on USDRUB
  • March 8th, 2021 – no trading.
  • March 9th, 2021 – trading starts as usual.
Trading schedule on all currency pairs
  • From March 15th to 26th, 2021, trading will be stopped for an interval 1 hour earlier than usual (server time).
    Interval period (server time): 11:00 PM - 11:15 PM.
  • Starting from March 29th, 2021, currency pairs will be available for trading within the operating range of the contract specifications.
Please, note, that on March 19th and 26th 2021, trading on all instruments, including Cryptocurrencies, will be closed at 11:00 PM server time.

cTrader platform

Trading schedule on all currency pairs
  • From March 15th to 26th, 2021, trading will be stopped for an interval from 10:55 PM to 11:05 PM (server time).
  • Starting from March 29th, 2021, currency pairs will be available for trading within the operating range of the contract specifications.
Trading schedule on Metals (XAUUSD, XAGUSD)
  • From March 15th to 26th, 2021, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 12:05 AM - 10:55 PM.
  • Starting from March 29th, 2021, Metals will be available for trading within the operating range of the contract specifications.
Please, note, that on March 19th and 26th, 2021, trading on all instruments will be closed at 11:00 PM server time. In addition to that, from March 15th to 26th, 2021, there might be short quoting stoppages on behalf of liquidity providers during the interval between 10:00 PM and 12:30 AM server time.

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

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

Sincerely,
RoboForex team
 

RoboForex Contest

RoboForex Representative
Messages
45
Dear traders!

This week, the RoboForex company's project called ContestFx offers you the following competitions on demo accounts:

The 120th competition of "Demo Forex" is gaining "speed".
The 300th competition of "Week with CFD" has just kicked off this morning.
433rd competition of "Trade Day" will start on 10.03.2021 at 12:00.
349th competition of "KingSize MT5" will start on 11.03.2021 at 20:00 .

Let us remind you that now it is easy to become a participant in our exciting competitions - just go through a simple registration procedure and then you can participate in any of your desired competitions with just a couple of mouse clicks.

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

Sincerely,
RoboForex Contest
 

Vlad RF

RoboForex Representative
Messages
185
How Should a Beginner Prepare a Trading Plan?

Author: Victor Gryazin

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Dear Clients and Partners,

In this overview, we will discuss preparing trading plans. A trading plan helps evaluate the current market situation and make the trader’s plans come to life.

What is a trading plan necessary for?

A trading plan is something like a road map for traders. Based on the trading strategy that you use, a trading plan formulates existing trading opportunities and promising trades. Promising trades are those that have a high probability of a success; they are made in the right place, at the right time, with a moderate risk and a good potential profit.

A trading plan must describe your trading ideas, your analysis of the current situation in detail. It makes a “picture” of your view on the market on paper (or in a file). On the whole, successful analysis and a correct opinion about the market do not guarantee good trading by themselves, however, your current thoughts can show you the field where you can look for trading ideas.

Having a clear and easy-to-understand trading plan, a trader stops making chaotic emotional trades. They are no more a helpless wood chip on market waves. They set their sails and starts off towards their profit, finding and closing promising trades. Thanks to the plan their trading becomes more efficient.

Step 1: Technical picture

To evaluate the technical picture in an instrument, we use good old tech analysis. Open the chart of your financial instrument, check several timeframes (starting with larger ones and going down to smaller ones), and mark all the important factors:
  • Trend direction, trend lines
  • Support and resistance levels
  • Tech analysis patterns
  • Additional signals: Fibonacci levels, candlestick combinations, Price Action patterns, various original methods.
After you have marked everything on the chart, find suitable entry points on it by your strategy. Choose signals based on which you will open your position: a breakaway of or a bounce off an important level, exiting a price range, a complete tech analysis pattern, etc. Mark all the entry points and confirming signals in your trading plan.

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Correcting your plan

During the day, depending on the dynamics of quotations, the plan might need certain corrections: additional signals might appear or, on the contrary, some of the signals might become irrelevant. This is absolutely normal, the market is influenced by multiple factors, including macroeconomic indicators. Make all the necessary corrections and go n following it.

At the end of the day, right down the results in your trader’s diary. This will show you if you have been following the plan or trading chaotically. Also, later you will assess the statistics, see the weak and strong points of your trading systems, and correct if necessary.

Closing thoughts

A trading plan is the trader’s main instrument and weapon. It is meant to evaluate the current situation in the market, plan and carry out promising trades. Having a well-prepared trading plan, the trader protects themselves from chaotic, emotional trading. Being disciplined and thorough about your trading plan, you will enhance your trading and your professional skills.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

Vlad RF

RoboForex Representative
Messages
185
USD in 2021: Hoping for Best, Ready for Worst

Author: Victor Gryazin

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Dear Clients and Partners,

As a result of 2020, the USD fell by 10% in pair with the EUR. Strategically though, the dollar grew by 10% in pairs with all world currencies, winding up a cycle of growth.

Strengthening mostly happened in the second half of the year when the world became less fear of COVID-19, realized that the pandemic could be taken under control, and got inspired by the idea of total vaccination. Then capital markets stopped using the dollar as a protective asset. Other currencies got a chance to recuperate and grow, while the world switched to hoping for the effect of the vaccination and soon economic restoration.

The Federal Reserve system decreased the intetest rate only once in 2020, in March, to the all-time low target level of 0-0.25% per annum, where it remains now. Soft credit and monetary policy works against the dollar in the long run, as well as talks about further stimulation. A new wave of the latter is expected in quite the nearest future, alongside the activation of trading between the USA and its partners, and vigorous growth in all key branches of economy. However, what will happen to the dollar?

How much will the dollar cost in 2021?

It is quite possible that 2021 will not be the most comfortable year for the dollar for several reasons. The first one is the Fed's soft credit and monetary policy. The package of stimulation measures will put more pressure on the dollar but support the whole system. Moreover, the need for the dollar as a safe-haven asset will decrease as soon as the pharma sector will find some cure for the coronavirus, and the global vaccination will show its effect. Also, do not neglect the foreign and domestic policy of President Biden that can play against the dollar as well.

The chart of the dollar index itself shows a complete third wave of growth to 103. Today, the market is trading parts of a classic A-B-C correction. A five-wave structure of wave A aiming at 89 is complete. Earlier, in 2020, the market completed wave B, performing a structure of growth to 103. Thus it has almost formed a Double Top pattern. If we get deeper into detail, the technical picture of the Double Top is interpreted as a consolidation range between 103 and 89. Now the whole wave of decline that started in March 2020 is lokked upon as a cycle of wave C. The aim of 86

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How does COVID-19 influence the dollar in 2021?

It might happen that both domestic and foreign political courses will get in the shadow of the pandemic until the coronavirus issue gets solved strategically. The world has minimum three efficient vaccines, and the vaccination campaign goes on stably and aggressively. The faster goes the vaccination, the faster collective immunity will form. This means that the economy of the US will return to normal without lockdowns, social restrictions, and constant viral disturbances.

For now, the dollar is stable in this regard, but as soon as the risks of the coronavirus fade, the dollar will also step back.

Technically, this picture on the chart will look as the end of the second half of the declining wave, aiming at 89. When this level is reached, we expect a new wave of growth to 95 to develop. This aim can be reached at the end of May, 2021.

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What can be a positive driver for the USD?

Any complications of the process might support the dollar: arguments between the Republicans and Democrats, pauses in the stimulation, scandals, arguments with foreign counterparts.

Moreover, do not forget about the market trend being usually unstable and the dollar — volatile. The market is a living and mobile phenomenon, reacting to all things around. However, for now, 2021 looks like a complicated year for the USD.

Let us have a look at technical issues. Tge chart suggests that another fifth wave in the declining cycle might start developing. Bouncing off 95, a new declining wave to 86 might start developing, winding up the potential of the A-B-C formation. This scenario might be completed in September.

When this level is reached, the technical picture will suggest a new wave of growth to 95 at the end of 2021, and by 2024, the wave might reach 106. This takes us back to the very first chart in the article.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

RoboForex Contest

RoboForex Representative
Messages
45
Dear traders!

This week, the ContestFx project will continue as usual with the following exciting competitions:

The 120th competition of "Demo Forex" has reached its "equator".
The 301st competition of "Week with CFD" has just started.
434th competition of "Trade Day" will start on 17.03.2021 at 12:00.
350th competition of "KingSize MT5" will start on 18.03.2021 at 20:00.

The winners of our contests become the owners of prize money received to their real trading accounts, which enables them to trade the whole variety of the Forex market without investing their own financial savings required as an initial deposit.

Do not miss your chance!

Sincerely,
RoboForex Contest
 

Vlad RF

RoboForex Representative
Messages
185
How to Trade by the Shark Pattern?

Author: Maks Artemov

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Dear Clients and Partners,

Shark is a price pattern that consists of five impulses and promises soon trend reversal. This pattern is a rather recent phenomenon; it was first singled out and described in 2011 by Scott M. Carney. The pattern belongs to Harmonic trading designed by Harold M. Gartley and described in his book "Profits in the Stock Market".

Shark is simular to such graphic analysis patterns as Double Top and Double Bottom, but in essense, it is an updated 5-0 pattern. Detecting reversal points in the Shark pattern requires the use of Fibonacci lines that are essential for the pattetn: without them, we cannot be sure if the pattern has formed correctly.

In this article, we will discuss the rules by which the Shark forms on the chart and the principles, by which we open positions with this pattern.

How does the Shark pattern form?

The Shark pattern consists of five points: 0, X, A, B, C — that form on the chart one after tge other. A complete pattern looks like the shark's fin or its jaws swung open; to my mind, however, this is all very individual.

Seeing all the five points in the chart, a trader might conclude that here goes the shark; nonetheless, without Fibonacci levels, you cannot be 100% sure.

How to confirm a Shark pattern by Fibonacci levels?

All trading terminals feature an instrument called Fibonacci Lines with basic settings, but they do not suit us. To check your presumable Shart pattern, delete all the default levels (except "0") and write in 0.866, 1.13, 1.618, 2 24. See below this settings amendments in MetaTrader 4/5:

Fibo-1-%D0%B0%D0%BD%D0%B3%D0%BB.png


Fibo-2-%D0%B0%D0%BD%D0%B3%D0%BB.png


In more detail, you can read about Fibo levels in these two terminals in the following article:

How does a bearish Shark form?

A bearish Shark pattern forms in a mirror-like wave:

Upon testing point X, the quotations form a minor correction, and the pullback ends in point A. Upon testing point A, the quotations form another descending impulse, renewing the lows in point B. Upon testing point B, the quotations begin another correction that ends in point C. This wave of growth is the largest of all.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

Vlad RF

RoboForex Representative
Messages
185
RoboForex adds useful push notifications to the mobile version of MT5

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Dear Clients and Partners,

We’ve added another useful feature to MetaTrader 5! From now on, you have access to push notifications about popular asset prices’ reaching the lowest or highest level in the MT5 mobile application.

How does it work?

When the price of one of the below-specified trading instruments reaches the highest or lowest level over some particular period of time (from 1 to 12 months, or all-time), your smartphone will receive a push notification in the following format:

EURUSD exceeded 3-month high.

The list of instruments

Currency
pairs
GoldOilIndicesCFDs on
stocks
EURUSD
USDJPY
GBPUSD
AUDUSD
USDCHF
USDCAD
XAUUSDBrent
WTI
DE30Cash
JP225Cash
US30Cash
US500Cash
USTech100Cash
AAPL
AMZN
BAC
F
GE
GOOGL
MSFT
TSLA
How to manage push notifications?

To start receiving push-notifications, you need to install the MetaTrader 5 mobile application on your smartphone or tablet. Notifications are enabled by default.

You can manage your subscription to mobile push-notifications in your RoboForex Members Area.

Benefit from all opportunities MetaTrader has to offer!
  • Access to popular markets
    Trade such popular assets as Forex, Metals, CFDs on US stocks, indices, and oil.

  • Algo trading
    Create and backtest trading robots using built-in tools without having to harness any programming skills.

  • Exceptional conditions for Prime accounts
    Get access to unique trading conditions similar to liquidity providers.
Mobile push notifications are a quick way to learn about popular asset prices’ reaching the lowest or highest level. Open an MT5-based account, install the MetaTrader 5 mobile application, and receive the maximum information for more efficient trading at RoboForex.


Sincerely,
RoboForex team
 
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