RoboForex - www.roboforex.com

[Vlad RF]

Merger and Acquisition: What Are the Types and How Shares React?

Author: Maks Artemov

Dear Clients and Partners,​

No doubt, each investor is interested what happens to the company they put their money in after it goes through a merger or acquisition. What to do, especially with the shares in your portfolio? Most importantly, what profit one will receive after such business events? This article attempts at answering these questions and giving some options of behavior in the case of merger or acquisition.

Company M&A

Merger is a process in which two or more companies take some economic actions to enlarge or expand their business. The abbreviation M&A stands for Mergers and Acquisitions. After the merger, a larger company appears in the market. The aim of the process is to make business more efficient, increase production powers, take over new markets, and create a full or partial monopoly.

Types of mergers

There are two main types of M&A:

• Friendly M&A happen when two companies agree on mutually profitable conditions and act by the agreement.
• Hostile M&A happen when the management of the acquired company does not agree with the unprofitable conditions of the merger but usually has no choice. A hostile merger becomes possible when the acquiring company owns over 30% of the company that is acquired. If the former holds the control package of stocks (over 50%), the latter has no chances to oppose the merger.

The influence of M&A on the quotations

Firstly, let us get to know what happens to the shares of merging companies. In most cases, the quotations of the acquired company grow. The reason is a profitable share exchange offer and other bonuses for investors and shareholders.

Normally, the shares of the acquiring company can drop. The reason is increased expenses at the start. After a successful merger and successful reshuffling, the shares recover and start growing.

In certain cases, it so happens that the shares of the companies on both sides start falling after the merger is announced. Usually this happens when investors do not think that the merger is reasonable and see no perspectives.

The opposite can also happen: the shares of both companies grow. This happens when the merger looks promising for all and investors see no bad sides of it.

Bottom line

M&A is a market trade that has both good and bad sides. To make the best of it you need to study and understand all the processes. A good way to do it is to study identical agreements in other companies. This does not guarantee you success yet might give an idea of what will happen and what are the stumbling rocks.

M&A is a complicated process that can take a long time, so be patient and try to avoid emotional decisions.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex: ticker changes following Facebook's company rebranding

Dear Clients and Partners,​

Facebook, Inc. (NASDAQ: FB) announced the change of its name to Meta Platforms, Inc. (“Meta” for short), as part of its company rebranding.

If you have open positions in FB or you plan to open positions, please take into consideration the changes that will take effect prior to the trading session start on 1 December 2021.

How will this change affect positions and orders?

Accounts on MetaTrader 4 / MetaTrader 5

• The ticker of all open positions in CFDs on Facebook's shares will change from FB to MVRS as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.
• The ticker of all open positions in Facebook's shares will change from FB.nq to MVRS.nq as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.

Accounts on R StocksTrader

• The ticker of all open positions in CFDs on Facebook's shares will change from FB to MVRS as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.
• The ticker of all open positions in Facebook's shares will change from FB.nq to MVRS.nq as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.

Pay attention to Expert Advisors (EA)

If you are using Expert Advisors (EA), check their settings to make sure they are operating correctly after the ticker changes.

All other trading conditions remain the same. Please take the above ticker changes into consideration when planning your trading activity.

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project is waiting for you to participate in the following competitions:

The 128th competition of "Demo Forex" has entered the final stage.
338th competition of "Week with CFD" has just started.
471st competition of "Trade Day" will start on 01.12.2021 at 12:00.
387thcompetition of "KingSize MT5" will start on 02.12.2021 at 20:00.

We remind you that all winners of our competitions receive funds to their real trading accounts, so they can earn money on the Forex market without investing their own savings required as an initial deposit.

Good luck to all traders!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex adds over 500 instruments to R StocksTrader, including fractional shares

Dear Clients and Partners,​

RoboForex updated R StocksTrader, which now offers over 500 new instruments for trading, including fractional shares and CFDs on shares of American, Brazilian, British, and European companies.

Access to trading fractional shares will enable clients to acquire both full shares and "slices" of stocks that represent a partial share. For example, a client can buy 1.5 of an Amazon or Netflix share. Meanwhile, the minimum volume of shares to buy remains the same – 1 share.

Why are fractional shares convenient?

• Fractional shares cost less than full shares and that’s an excellent opportunity to invest in securities with less money.
• Fractional shares enable clients to diversify their investment portfolios by acquiring fractional shares of a wider range of companies.

Other updates to R StocksTrader:

• New CFDs on American, Brazilian, and European stocks, including such popular instruments as Lucid Group Inc (LCID), Rivian Automotive Inc (RIVN), Udemy Inc. (UDMY), and others.
• 8 additional languages: Danish, Italian, Dutch, Norwegian, Rumanian, Finnish, French, and Swedish.
• Improved mobile application: enhanced security, direct access to deposit/withdrawal of funds, and the registration of trading accounts.

Apart from new assets R StocksTrader offers over 12,000 trading instruments for investing, including more than 3,000 real stocks, such as Amazon, Apple, Facebook, and Tesla

We’re always striving to provide quality services and add new instruments and update the platform functionality. Due to this, the commission for trading Stocks and CFDs on stocks has been pushed to competitive levels. Updated commission conditions can be viewed on the "R StocksTrader" page.

Start trading fractional shares and other popular instruments on

R StocksTrader today!



Learn more about trading Stocks >​

Sincerely,
RoboForex team

 

[Vlad RF]

How to Use Personal Income and Personal Spending in For example

Author: Victor Gryazin

Dear Clients and Partners,​

This overview is devoted to two macroeconomic indicators — Personal Income and Personal Spending —and their influence on the stock market.

What is Personal Income

Personal Income represents monthly changes in the income of physical persons. This indicator assesses in percent the changes of the aggregate income of people in the country over a reporting month compared to the previous month. For calculations, income from several sources is used:

• Wage/salary
• Bonuses
• Income from owning real estate
• Income from holding financial assets
• Income from enterprises
• Subsidies and social payments
• Insurance, pension, etc.

In the USA, Personal Income is calculated and published by the Bureau of Economic Analysis (BEA), alongside Personal Spending.

Monthly changes of personal income is one of the key macroeconomic indicators that the BEA uses for assessing business activity in the country. Personal Income changes are published monthly in the Economic Calendar.

What is Personal Spending

Personal Spending demonstrates monthly changes in expenses of physical persons. It assesses in percent how aggregate expenses of people in the country have changed over the reporting month compared to the previous one. This includes all main expenses of the population:

• Spending on services
• Spending on durable and not goods
• Spending on banking transactions, commission fees, etc.

This indicator is also calculated monthly and published by the BEA alongside Personal Income. Consumer expenses are part of the GDP, hence, PS helps forecast its growth. Also, it is one of inflation growth indicators. Changing Personal Spending us published monthly in the Economic Calendar.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This new week, the RoboForex company's project called ContestFX will continue with the following competitions on demo accounts:

The 129th competition of "Demo Forex" and 339th competition of "Week with CFD" have just started.
472nd competition of "Trade Day" will start on 08.12.2021 at 12:00.
388th competition of "KingSize MT5" will start on 09.12.2021 at 20:00.

To participate in competitions, you're required to go through a simple registration procedure just once, and then access to any chosen competition 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 to Trade Dragon Pattern: Manual

Author: Andrey Goilov

Dear Clients and Partners,​

In technical analysis, there are patterns that can help you catch a market reversal on time. Among strong patterns, people name Double Top and Double Bottom, a.k.a. W-top and M-top.

Fairly enough, the market does not normally reverse by a single strong movement in the opposite direction. Most often, it forms a reversal pattern to get started.

Apart from using classical reversal patterns, some traders modernize identification and trading rules of existing structures. One example is the Dragon pattern.

The Dragon pattern looks very much like a Double Bottom but features some unique rules that identity it as a separate pattern, not a classical price structure. As the author puts it, the Dragon can be traded on various timeframes, while a low risk-to-profit ratio makes it even more attractive for traders.

The article is devoted to distinguishing the Dragon from a classic Double Bottom, the rules of trading, levels of taking the profit and leaving the market if necessary.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex enables access to the CopyFX platform in the MT5 terminal

Dear Clients and Partners,​

You can now invest using CopyFX via accounts opened in MT5, the trading terminal that is very popular with traders.

CopyFX is RoboForex’s proprietary investment platform for copy-trading. It allows users to copy transactions of successful Traders and earn on their trading strategies or trade on their own and receive additional income from subscribers, the platform’s Investors.

Aspects of investing using CopyFX via MT5 accounts:

• Investments using CopyFX are available to any hedging MT5 account. All you have to do is to choose a Trader from the Rating and subscribe.
  
• To become a Trader, you don’t need to open a new account and trade to create a new trading history – your statistics and trading results are already synced with the platform. To start working, you have to specify subscription conditions, that’s all.
  
• You can use the same MT5 trading account to copy transactions of other Traders and let your transactions be copied by Investors.
  
• Investors can use three subscription modes, “Proportional”, “Classic”, and “Fixed”, while Traders can work according to the “Without commission” scheme.
  
• All transactions are copied instantly; there are no limits for the number of accounts per subscription.
  
• Subscriptions are allowed only between MT5 accounts.

How to start investing?

• Register a new MT5 account or log in to an existing one.
  
• Choose the amount to be invested via CopyFX and deposit it using one of the 20 available payment systems.
  
• Choose a Trader in the Rating and start copying their transactions.

Are you ready to start earning on investments?



Read more about CopyFX >​

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project brings the following competitions to your attention:

The 129th competition of "Demo Forex" is gaining speed.
The 340th competition of "Week with CFD" has just started.
473rd competition of "Trade Day" will start on 15.12.2021 at 12:00.
389th competition of "KingSize MT5" will start on 16.12.2021 at 20:00.

We remind you that all winners of our demo competitions receive prize money to their real trading accounts, so they can use them to earn money on the Forex market without investing their own savings required as an initial deposit.

Good luck to all traders!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Use EPS for Evaluating Shares

Author: Victor Gryazin

Dear Clients and Partners,​

To choose interesting stocks for investing, market players evaluate carefully various economic indices and statistics. This overview is devoted to one index called Earning per Share, or EPS.

What is EPS?

This Earning per Share index evaluates how profitable a certain company is in terms of one share. This multiplier shows the relation of net profit over a year’s time and the number of its ordinary shares in turnover, giving an idea of what profit can be brought to the investor by each share they buy.

In essence, each shareholder holds their share of the authorized capital of the company that equals to the number of issued shares. The profit made is given proportionally to each shareholder. So, the EPS multiplier reveals how much money out of the invested sum will return to the investor. The higher the EPS, the more profitable it is to invest in the company.

The profit made by the company can be fully or partially given to the shareholders as dividends. Here, things depend on the decisions of the board of directors. Shareholders via their representatives on the board can influence the issue, altering the share of the profit that will be given out to the shareholders in the form of dividends.

How is EPS calculated?

For calculating EPS, we use the net profit minus dividends on privileged shares. the formula is as follows:

EPS = (P – Div) / N

Where:

• P is the net profit of the company for the reporting period (after taxes)
• Div is the dividends on privileged shares
• N is the number of ordinary shares in turnover in the reporting period

Example of calculation:

As an example, let us use Netflix (NASDAQ: NFLX). Over the last financial year, the company reported 2,761,395,000 USD of net profit, while the total number of ordinary shares in turnover was 440,922,000 shares.

The balance report says that Netflix did not issue privileged shares, so in the calculation formula, we subtract nothing.

Dividing the net profit of 2,761,395,000 USD by 440,922,000 shares, we get EPS of 6.26 USD per share.

You can check EPS in economic reports or on websites. For EPS or American companies, for example, go to Finviz.com:

Closing thoughts

EPS gives a chance to assess the potential profit made on one shares of the company you are planning to invest in. The multiplier has equally advantages and drawbacks, so it is recommended to be used alongside other multipliers, P/E being the most frequently used one.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Choose Shares for Investing in Correcting Market

Author: Eugene Savitsky

Dear Clients and Partners,​

Over the last 10 days, the stock index S&P 500 corrected by 5%. Previous correction was longer but amounted finally to just 6%. Since the beginning of 2021, the index has had five corrections, yet the price has never fallen more than by 6%.

Based on this, we can suppose that the current correction is close to an end, and soon the quotations will start growing again. In this case, the question is: which stocks to buy in such a market?

Today, I will drive your attention to major market players and see which shares they prefer investing in.

At present, the top-3 market participants managing a capital of more than 1 trillion USD includes:

• VANGUARD GROUP INC – 4.2 trillion USD
• BlackRock Inc. – 3.57 trillion USD
• STATE STREET CORP – 1.89 trillion USD

I suggest looking into the portfolios of these funds and check their recent investments. I guess, you will be surprised because you will not see there such well-known companies as Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), or Amazon.com, Inc. (NASDAQ: AMZN).

VANGUARD GROUP INC

Let us start with VANGUARD GROUP INC. Note that I range the shares by their “weight” in the portfolio, and these are brand-new purchases, i.e. these shares had not been in the portfolios before.

Number one is Lucid Group, Inc. (NASDAQ: LCID).

Lucid Group, Inc. was founded in 2007. It manufactures cars. This investment is evaluated as 900 million USD. In the last quarter, the average share price of the company was 25.38 USD, while now they are trading for 48 USD.

VANGUARD invested in GXO Logistics about 798 million USD. In the last quarter, the average share price was 78.44 USD and the current market price is 92 USD.

Meanwhile, number three is SoFi Technologies, Inc. (NASDAQ: SOFI).

SoFi Technologies is a financial company founded in 2011. It gives loans for education, refinancing older loans, insurance, mortgage, and provides other financial services.

In SoFi Technologies, VANGUARD invested 751 million USD. In Q3, its average share price was 15.88 USD and the current price is 16.40 USD. Note that with the current price growth, the investments of VANGUARD GROUP already demonstrate profitability.

Tech analysis of GXO Logistics shares

Now to the charts of the companies. The shares were bought in Q3, so now we can check how this process affected the share prices of the issuers.

The leader in terms of the sum of investment is GXO Logistics. Since the IPO, the shares of the company have been growing, which is no surprise. Average daily trade volume amounts to 55 million USD. Hedge funds created demand for the shares with their 1.6 billion USD of investments, making the share price grow.

Today, there is an uptrend on the chart, and the quotations have declined to the lower trendline, which means the correction will soon be over, and growth will start again. Another signal to buy the shares will be a bounce off 90 USD.

Bottom line

Corrections give investors a great chance to buy some shares at lower prices. However, there is always a question, which shares to buy. I suggest that we look for possible investments in the reports of major market players that employ dozens or perhaps hundreds of analysts all over the globe.

All the three funds spent on the shares of the named companies no more than 0.02% of their portfolios, which means in the future they will be investing more, making the shares grow.

Currently, keep a close eye on the charts of the shares, checking for support levels, as with Victoria's Secret & Co quotations. This will be a hint on the price, at which it is better to buy the shares.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the RoboForex company's project called ContestFX is waiting for you in the following demo competitions:

The 129th competition of "Demo Forex" has entered the third week.
The 341st competition of "Week with CFD" has kicked off today.
474th competition of "Trade Day" will start on 22.12.2021 at 12:00.

This week, the competition of "KingSize MT5" will not be held on 23.12.2021. The 390th competition will take place on 06.01.2022 at 20:00.

If you haven't participated in our competitions yet, you need to register on our website and get access to any of the chosen competitions with just a couple of mouse clicks.

Good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex: changes to the trading schedule (in view of the Christmas and New Year holidays)

Dear Clients and Partners,​

We are informing you that there will be some changes to the trading schedule* during the Christmas and New Year holidays.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on DE30Cash and DE40Cash

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – no trading.
• 3 January 2022 – trading as usual.

Schedule for trading on CFDs on GDRs

• 24 December 2021 – no trading.
• 27 December 2021 – no trading.
• 28 December 2021 – no trading.

Schedule for trading on other instruments

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – trading stops at 8:00 PM, server time.
• 1 January 2022 – no trading.
• 2 January 2022 – trading as usual.

R StocksTrader platform

Schedule for trading on GER40

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – no trading.
• 3 January 2022 – trading as usual.

Schedule for trading on UK100, SPA35, FRA40

• 24 December 2021 – no trading.
• 27 December 2021 – no trading.
• 28 December 2021 – no trading.
• 29 December 2021 – trading as usual.
• 31 December 2021 – no trading.
• 3 January 2022 – no trading.
• 4 January 2022 – trading as usual.

Schedule for trading on UK stocks

• 24 December 2021 – no trading.
• 27 December 2021 – no trading.
• 28 December 2021 – no trading.
• 29 December 2021 – trading as usual.
• 31 December 2021 – no trading.
• 3 January 2022 – no trading.
• 4 January 2022 – trading as usual.

Schedule for trading on CFDs on EU stocks

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 30 December 2021 – no trading.
• 31 December 2021 – no trading.
• 3 January 2022 – trading as usual.

Schedule for trading on other instruments

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – trading stops at 8:00 PM, server time.
• 1 January 2022 – no trading.
• 2 January 2022 – trading as usual.

cTrader platform

Schedule for trading on all instruments

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – trading stops at 8:00 PM, server time.
• 1 January 2022 – no trading.
• 3 January 2022 – trading as usual.

Please take note of the above trading schedule changes when planning your trading activity.

* – This schedule is for informational purposes only and may be subject to further change.

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex receives the "Best Stocks Broker (Global)" Award

Dear Clients and Partners,​

In late 2021, RoboForex became the recipient of the “Best Stocks Broker (Global)” award from the prestigious media Global Business Review.

For much of 2021, we were paying extra attention to the improvement of our multi-asset platform R StocksTrader, which allows to invest in a lot of different instruments, including over 3,000 stocks and more than 8,000 CFDs American and European stocks.

• We extended the list of assets by adding over 700 new instruments.
• We added the opportunity to invest in SPAC.
• We enabled access to trading fractional shares.
• We expanded the platform functionality.
• We improved the mobile application.

Another award in the "Best Stocks Broker (Global)" nomination is proof that the company is moving in the right direction. It motivates us to consistently improve our products and services for our clients.

Are you ready to try stock trading?

See the quality of our provided services for yourself!

​

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project invites everyone to take part in the following competitions:

The 129th competition of "Demo Forex" is approaching its end.
The 475th competition of "Trade Day" will start on 29.12.2021 at 12:00.

"Week with CFD and" KingSize MT5 " contests will not be held - their next competitions will take place in the new year of 2022.

Congratulations to all of you on the upcoming Christmas and New Year! We wish everyone health, prosperity, and good luck in all your endeavours!

Sincerely,
RoboForex Contest

 

[Vlad RF]

What Are Futures and How to Trade Them?

Author: Andrey Goilov

Dear Clients and Partners,​

Many traders start by trading currency pairs, trying later CFDs, stocks, and futures. Today I will be talking about the latter ones.

A futures is a contract between the seller and buyer by which they agree to sell/buy the asset in the future for a set price. Initially, such contracts were meant for companies, so that they could avoid unnecessary expenses.

Here is an example. We sell coffee yet we understand that due to the pandemic, the price for it will only be growing, and quite noticeably. To avoid a steep increase in the price and a decrease in sales, we agree with the supplier on a large supply of beans at the current price but in six months.

If the price for coffee indeed grows in the future, we will only win because we will buy the beans at a lower price. If the price does not grow and even fall, the one to profit from the trade is the seller because they will sell the coffee at a higher price than the current one.

Most often, base commodities for futures contracts are crude oil, wheat, corn, stock indices. Such contracts, as a rule, are trading in the exchange, and real supply of the commodity never happens.

Why are futures interesting to traders?

On the whole, futures contracts are somewhat different from, say, stocks. When an individual trader buys stocks, it is more like an investment, while trading futures is more of a speculation.

Simultaneously, thanks to this peculiarity, futures have certain advantages, unavailable for investments in the stock market. For example, futures are traded almost 24 hours a day six days a week, while shares have a limited trading time.

Another advantage of futures is easier margin requirements when selling than those to stocks. A short position in stocks means selling the asset that has been loaned and then buying this one for less money. For stocks, this trading operation has high margin requirements, while with futures, they are the same for selling and buying.

Futures also allow diversifying certain classes of assets and invest in them more actively.

For example, the share price of an oil company will depend not only on oil prices but also on the work of the management and rivals. However, a futures itself can depend only on the oil price without any factors created by the work of the company and its rivals.

How to trade futures, after all?

To work actively with futures, the trader needs to focus on a limited number of instruments to stay concentrated and accumulate experience. With futures, you can take long and short positions: the direction of the work depends on your tolerance to risk and your goals.

A long position means that you buy a contract and wait for the base asset to grow in the future. Then you sell it at a higher price and make money on it. Risks emerge from the base asset not growing or even falling – this way you lose your money.

A short position means that you sell your futures and wait for the price of the base asset to fall in the future. Here are also risks: if you are in a short position, and the price for the base asset grows, your losses can be unlimited because there are no limits to growth.

There is also such a notion as calendar spread. This is a strategy by which the trader takes both a long and short position in one asset with different delivery dates.

The potential profit emerges from the small difference between the sold and bought contract. If the calendar spread is positive, the trader buys a futures with a shorter delivery term and sells a futures with a longer one. If the calendar spread is negative, they sell the futures with a shorter delivery term and buy the futures with a longer one.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Trade Marubozu Candlestick Pattern?

Author: Victor Gryazin

Dear Clients and Partners,​

This article is devoted to a universal candlestick pattern Marubozu: what it looks like on the chart and in which cases it can be used for trading.

What Marubozu candlestick is

The pattern is named after the only candlestick that it includes – Marubozu. From Japanese, the name is translated as “bald”, “with shaved head”. The candlestick has a large body and almost no shadows, so it looks as if its shadows have been “cut off”, leaving the candlestick with just a “bald” body.

There are three Marubozu types:

• Marubozu Full almost lacks both shadows;
• Marubozu Open lacks the shadow at the side of the opening price and has a small shadow at the side of the closing price.
• Marubozu Close, on the contrary, lacks the shadow at the closing side and a small one at the opening sid

The pattern can consist of any Marubozu, the type does not matter. As for the strength of the candlestick, it is considered quite strong and does not appear too often. When it does appear, however, this means bulla or bears are going to take action.

Types of Marubozu pattern

Depending on the color of Marubozu body, traders single out two types of the pattern: Bearish Marubozu and Bullish Marubozu. Sometimes you can hear about Marubozu Brothers, which means there are both types of the candlestick: a white bullish and a black bearish candlestick. I would say, one brother tries to push the market upwards (the Bullish Marubozu), while the second brother, on the contrary, plans to send the market down (the Bearish Marubozu).

Bullish Marubozu

The pattern consists of a large white candlestick and demonstrates that bulls are ready to attack. The place on the chart where the pattern forms, indeed, matters. There are two main trading scenarios.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

The RoboForex company's project called ContestFX invites everyone to join our exciting competitions in the new year of 2022:

The 130th competition of "Demo Forex" and 342nd competition of "Week with CFD" have just started.
476th competition of "Trade Day" will start on 05.01.2022 at 12:00.
390th competition of "KingSize MT5" will start on 06.01.2022 at 20:00.

We remind you that all winners of our demo competitions receive funds to their real trading accounts and can use them to make deals in the Forex market without investing their own money required as an initial deposit.

We wish you all successful trading for the whole year of 2022!

Sincerely,
RoboForex Contest

 

[Vlad RF]

Financial Reports of Companies: Main Reference Point for Investors

Author: Maks Artemov

Dear Clients and Partners,​

When you are investing in the stock market, you need to account for various factors and data from companies that you will be basing your investment decisions on. One of the most important and complex indicators of success of businesses is the financial report. It helps predict further development of the company and decide whether its shares are worth putting your money in.

Companies that do not have their shares traded in the stock market may not reveal their reports to all those who are curious. On demand, they can provide this information to tax authorities or potential investors. However, only public companies must reveal their financial reports fully.

As a rule, reports are published in open sources or on the websites o companies. The reporting period that ends up in a financial report, can be a quarter, six months, or a year. In certain cases, companies provide reports for longer periods for the sake of clearance of analysis.

Types of financial reports

Internationally accepted practice offers several types of standard reports:

• IFRS – International Financial Reporting Standard
• US GAAP – US Generally Accepted Accounting Principles.

The latter standard is used by companies that have their shares traded in US stock markets.

As the name reveals, the IFRS is an international reporting standard. Quite often, the IFRS report is adjusted to the standards of US GAAP for simpler analysis.

How to use financial reports

Having studies financial reports of a company or several companies, an investor can carry out a comparative analysis of their business. This is quite a simple thing to do.

First, choose the companies you would like to compare, but make sure they are working in one sector or make similar products. It would be wrong to compare a company that produces heavy metals and an entertainment company. In such a case, comparison will be incorrect for a number of reasons.

Draw a table of the indicators you are interested in. Thus you can assess the perspectives of development and potential profit from investments. As a rule, for comparison previous reports of both companies are taken, and comparative analysis is carried out that, among other things, helps assess potential dividends and the market sustainability of the company.

If the results of a company are disappointing, hold back from investing in it. Promising companies with innovative products can be an exception, but never forget about increased risks.

Bottom line

There is no reason for an investor to study the whole of financial report. Reports can contain up to 200 pages and some information meant for a very small number of people.

An optimum way out is to choose several indicators and use only them. Note that you need to study the reports for the previous reporting period. To see the full picture, annual reports are usually used.

When making decisions, investors are often perplexed by impulsive statements or negative news about the company. In this case, it will be safer to act based on digits and facts instead of emotions.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project, as usual, brings to your attention the following competitions:

The 130th competition of "Demo Forex" started a week ago.
The 343rd competition of "Week with CFD" has just started.
477th competition of "Trade Day" will start on 12.01.2022 at 12:00.
391st competition of "KingSize MT5" will start on 13.01.2022 at 20:00.

To participate in our demo competitions, you're required to go through a simple registration procedure, after which you'll be able to access any competition of your choice in just a couple of mouse clicks.

Join us!

Sincerely,
RoboForex Contest