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Price Movements: By Chance or By Nature?

Dear Clients and Partners,

Most traders I have known want to absolutely conquer the market. Some succeed, but only every now and then, failing to turn this conquer into a permanent win. The reasons are many, from insufficient skills or experience all the way to the lack of the 'holy grail', with the 'not enough money' reason in between. Well, a good set of excuses. These reasons, however, are somewhat true, as all traders are different and use their trading potential differently.

Two major trader’s opinions

There are two major opinions in the market that divide all traders. The first are Stochastics, those who want to predict the price movements. The second, agnostics, are just moving with the market, watching it constantly. The former are an overwhelming minority, while the latter account for about 90%. And even if you are a stochastic, chances are that you're a bit of agnostic, too.

What makes traders choose one way or the other? Again, the reasons are many, but, first and foremost, people tend to back their opinions with theories, either scientific or not that much.

The effective market theory

The effective market theory, for instance, tells us that all market players have access to the same information allowing them to analyze and predict the market moves. This way, each new piece of information is already priced in the market. All market players act rationally, like robots, in order to make the most of it, while a single trader is not able to influence the market.

This has nothing to do with the reality, though. What about the legal actions involving traders who used insider hints to speculate in the markets? Or how about those who buy out a certain currency in order to raise the demand for it? That's it. Theories work for ideal markets, not the real ones.

Reasons for market movements

Any move that happens in a real market has a medley of reasons behind itself; at any given moment, those reasons may be different, and the correlation between them may also be different. The point to understand is that no emotion, speech or data release may influence the price without someone's placing a real buy or sell order. If a bullish candle is rising, this means people are hitting the Buy button on and on, even with the ask price rising,

And the same is for a bearish candle. These are the basics of the price movement mechanics. Why do then massive buyouts and selloffs occur? The effective market theory has a ready-made answer for us again. A trader will sell a country's assets in case the local key interest rate is cut, the unemployment is rising, a war conflict breaks out, and so on. In other words, if a trader understands an asset is under risk, they attempt to get rid of it as soon as possible, even if the price is not that good.

Conversely, if the key interest rate is being risen, or, say, a QE program is coming to an end, a trader will buy out the appropriate assets. You understand, of course, however, that any market has trends, both short term, midterm, and long term, each of them being influenced by various factors and with different weight. Before a long term trend is reversed, the short term one ought to fade out first. Besides, any market has all types of players: large, medium, and small, and all of them operate at different levels on different time frames.

Read more at R Blog - RoboForex

RoboForex team
RoboForex investment and trading platforms win Global Brands Magazine Awards

Dear Clients and Partners,

We are delighted to announce that two of our flagship products have received prestigious accolades at the Global Brands Magazine Awards. Our CopyFX investment platform was awarded the title of "Best Copy Trading Platform", and R StocksTrader earned recognition as the "Best Multi-Asset Trading Platform".

Trade in R StocksTrader
the Best Multi-Asset Trading Platform

  • Integrated Copy Trading for mobile app
    Copy the best trading strategies as an Investor, receive commissions from subscribers for your trading experience as a Trader
  • 12,000+ instruments
    US Stocks, Indices, ETFs, CFDs on stocks, and other popular assets
  • Cost-effective conditions
    Enjoy market-based spreads from 0 pips, a commission for Stocks from 0.009 USD per share
  • Useful functions
    One-click trading directly from charts, a built-in strategy constructor, advanced watchlists, etc
  • Corporate actions
    Automated dividend payments and supported corporate actions (cash dividends, splits, mergers, and more)

Invest without borders with
the Best Copy Trading Platform

  • Versatility
    Copy the best trading strategies as an Investor, receive commissions from subscribers for your trading experience as a Trader, or guide newcomers to top Traders and earn a share of their commission as a Partner
  • Security
    Robust handling of high-volume transactions, unmatched security protocols, and exceptional network stability
  • Integration
    Seamless integration with the top-tier MetaTrader 4/5, as well as via the exclusive R StocksTrader platform
  • Adaptability
    You can choose multiple roles or simply select one - be it a Trader, Investor, or Partner

Read more at RoboForex Website

The RoboForex team
RoboForex: upcoming changes to the trading schedule in view of the Thanksgiving holiday in the US

Dear Clients and Partners,

We are informing you of the upcoming adjustments to the trading schedule due to the Thanksgiving holiday in the US.

This schedule is intended for informational purposes only and may be subject to further amendments.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on CFDs on the US indices (US30Cash, US500Cash, USTECHCash) and the Japanese index JP225Cash
  • 23 November 2023 – trading stops at 7:40 PM server time
  • 24 November 2023 – trading stops at 8:00 PM server time
Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on Oil (Brent, WTI)
  • 23 November 2023 – trading stops at 7:40 PM server time
  • 24 November 2023 – trading stops at 8:00 PM server time
Schedule for trading on CFDs on US stocks
  • 23 November 2023 – no trading
  • 24 November 2023 – trading stops at 8:00 PM server time
Schedule for trading on CFDs on US futures
  • 23 November 2023 – no trading
  • 24 November 2023 – trading stops at 7:15 PM server time

R StocksTrader platform

Schedule for trading on US stocks and ETFs
  • 23 November 2023 – no trading
  • 24 November 2023 – trading stops at 8:00 PM server time
Schedule for trading on CFDs on US stocks and ETFs
  • 23 November 2023 – no trading
  • 24 November 2023 – trading stops at 8:00 PM server time
Schedule for trading on CFDs on the US indices
  • 23 November 2023 – trading stops at 7:40 PM server time
  • 24 November 2023 – trading stops at 8:00 PM server time
Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on oil (WTI.oil, BRENT.oil)
  • 23 November 2023 – trading stops at 7:40 PM server time
  • 24 November 2023 – trading stops at 8:00 PM server time
Schedule for trading on CFDs on US futures
  • 23 November 2023 – no trading
  • 24 November 2023 – trading stops at 7:15 PM server time
Please take note of the above amendments to the trading schedule as you plan your trading activity.

The RoboForex Team
The RoboForex partners promotion with cash prizes worth $1,000,000 continues!

Dear Clients and Partners,

We remind you that all RoboForex partners can take part in our grand promotion and win cash prizes.

The distribution of 60 prizes from $1,000 to $15,000 is organised once a month to April 2024.

The winners will be decided by the market.

A system as transparent as possible - It's all up to stocks.

Join our grand promotion!

Read more at RoboForex Website

The RoboForex Team
How to Trade on Forex? Ultimate Guide for Beginners

Dear Clients and Partners,

What are financial markets – exchange and Forex?

When an uninitiated reader encounters the collocation "financial market", they discern no difference between such terms as "stock market", "exchange", "Forex", "equity market", "bond market", "currency market", "derivative market", etc. So, I think there should be an explanation what the financial market really is. First of all, understand and remember that the financial market is not just a place for trading, but the entire system of the economic relations, which appeared in the process of exchanging different goods and recourses.

The financial market is an environment for mobilization and aggregation of capital, for loaning, exchanging currencies, and investing in the industrial sector. Balance of supply/demand for borrowed funds forms the global financial market. The global financial market can be classified according to types of goods that are traded. There are following types of financial markets:
  • The currency market (Forex). The basic asset here is currencies, which are bought and sold by brokerage companies, banks, and investment funds.
  • The stock market. This is the place where they trade securities (stocks, bonds, bills, derivatives).
  • The commodity market. Among assets that are traded here are oil, metals, farm produce.
  • The precious metals market is often considered as a part of the commodity market, but it should be classified as a separate market due to significant trade turnover growth. As a rule, precious metals often serve as safe haven assets.
Trading procedures on Forex

Since the Forex market is an OTC market, it doesn’t imply actually buying or selling currencies like they do in exchange offices.

A lot of people ask themselves a question: "How do I become a trader and start trading on financial markets?" Let’s try to track the career path of a future "big boy from Wall Street" step by step. Early stages in trading on Forex and other financial markets are pretty similar. Let’s take a closer look at this process by the example of the currency market.

First of all, a trader-to-be chooses a broker and decides on the trading platform they are going to use for trading. A variety of trading terminals available on the market allows to choose one that meets all their requirements and preferences. After choosing the platform, they have to decide on a trading account type. As a first step, it’s better to go for a standard demo account, which helps to learn how to open and close positions, place Stop Loss and Take Profit levels, and use charts and indicators.

Stop Loss is a protective order placed by a trader to limit possible losses in case of negative market situation. The order level is defined on basis of the current market situation, risks that a trader can afford, and their trading strategy.

Take Profit is an order to close a position when the instrument quotes reaches some specific price level. The order parameters are set by a trader based on their forecasts or according to their trading strategies. Take Profit orders can be placed not lonely at the position opening, but later as well. Also, there are methods of trading without Stop Loss and Take Profit levels, when a trader closes each deal manually after evaluating the current market situation.

How to trade on demo account?

Let’s assume that a trader chooses MetaTrader 4 terminal, opens a demo account with 10,000 virtual USD, and decides to trade EUR/USD positions of 1 lot. In this case, a trader opens positions using virtual money and if they lose it, no real financial losses will be incurred. Any trader has an opportunity to open several demo account with the same broker and trade any amount of virtual funds.

After that, it’s time to learn how to open positions. After opening the EUR/USD chart, a trader sees that the price may rise in the future (we’ll later discuss what reasons this conclusion is based upon). To open an order, we choose "New order" tab, specify the volume (by default, 1 lot), set Stop Loss and Take Profit levels, and add comment to the order if necessary.

Read more at R Blog - RoboForex

RoboForex Team
RoboForex receives "Best Trading Conditions" and "Best Partner Program" awards

Dear Clients and Partners,

We are delighted to inform you that RoboForex has received awards in two prestigious nominations from influential media outlets. The company won the "Best Trading Conditions" title at the International Business Magazine Awards and the "Best Partner Program" accolade from the World Economic Magazine Awards.

Trade with the industry leader and experience the advantages of being a RoboForex client

Become a RoboForex partner
and earn up to 84% with the Partner programme’s best conditions

  • Instant partner commission
    Earn up to 70% commission under the Partner programme
  • Loyalty programme
    Receive up to 20% of the total partner commission as extra profit
  • 24/7 Support
    RoboForex Support is available 24/7 to assist you
  • No Payout Limits
    There are no restrictions on the maximum payments per month or per client
  • Convenient payouts
    The commission is automatically transferred to your account on a daily basis
Use our interactive Affiliate Calculator to estimate your potential profit.

Read more at RoboForex Website

The RoboForex Team
S&P 500 Forecast for 2024: Can the Index Hit 5,000?

Dear Clients and Partners,

On 29 November 2023, we looked at the popular stock index S&P 500 (US500), examining global economic factors influencing it and potential investment and trading strategies. Based on technical analysis, we assessed the current situation on the index chart and explored analysts' forecasts for 2024.

Overview of the S&P 500

The S&P 500 is one of the world’s most widely used stock indices, comprising 500 of the largest companies traded on US stock exchanges. It was created on 4 March 1957 by Standard and Poor’s, now known as S&P Global Inc.

Companies in the index basket represent various economic sectors and industries, making the S&P 500 a crucial gauge for assessing the US stock market.

The S&P 500 eligibility criteria
  • Market capitalisation is greater than or equal to 14.5 billion USD
  • At least 50% of shares should be available for public trading
  • Stocks should be traded on the NYSE or NASDAQ
  • The company should have a primary listing on a US stock exchange, comply with US securities laws, and generate at least 50% of its income in the US
  • Operations for the last four quarters should be profitable
The list of the S&P 500 companies is revised every quarter. If, for any reason, a corporation no longer meets the above criteria, it is replaced with another company.

Looking back: the S&P 500 performance in recent years

According to TradeThatSwing, the average annual return for the S&P 500 from September 1973 to September 2023 inclusive is 10.75% if unadjusted for inflation and 6.59% if adjusted for inflation. From 1998 to 2022 inclusive, the maximum index return of 30% was recorded at the end of 2013. The minimum value for the same period was seen at the end of 2008, standing at −38%.

The average annual return for the S&P 500 from September 2018 to September 2023 inclusive reached 10.49% if unadjusted and 7.28% if adjusted for inflation. It can be assumed that the index value could have been higher if stock performance in 2020 were not characterised by the high volatility caused by the COVID-19 pandemic. In addition, it was negatively affected by both a bearish market and a high inflation level in 2022.

Global economic factors influencing the S&P 500
  • The Federal Reserve’s monetary policy. Interest rate changes may impact borrowing costs for companies, affecting profits and investment decisions
  • Global economic growth. This usually has a positive impact on companies’ profits and contributes to index growth
  • Exchange rates. The strengthening of the US dollar may adversely affect profits of US companies with a significant share of global operations
  • Corporate reporting. Positive quarterly and annual reports may drive up stocks of the S&P 500 companies, creating favourable conditions for index growth
  • Important political events in the country. For example, tax reforms or regulation changes may have a substantial effect on the stock market, and hence the index
  • Energy source prices. Changes in oil and gas prices may affect the energy sector, and index quotes
Read more at R Blog - RoboForex

The RoboForex Team

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