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[Vlad RF]

Bull Market: Characteristic and Trading Principles

Author: Victor Gryazin

Dear Clients and Partners,​

This article is devoted to the notion of the bill market: what it is, what peculiarities it has, and how to use it for trading.

What is the bull market

Bull market is a situation in a financial market when market prices are growing stably and investors are very optimistic. This term is more frequently used for the stock market yet it would be equally valid in the case of bonds, real estate, currencies, goods, and other financial spheres.

The term "bull market" describes lengthy time frames when most stocks grow stably and stock indices confidently renew highs. In other words, there is a long-term uptrend in the market: new highs and lows higher than the previous ones are set regularly. Normally, bull markets last from several months to several years.

Over history, the global stock market has passed through several such times. The longest of all started right after the mortgage crisis of 2008 in the US and ended with the COVID-19 pandemic in 2019. Over these years, the Nasdaq 100 stock index grew by more than 800%, while some popular share — by more than 1,000%.

Characteristics of bull market

Such a state of things in the financial market quite often accompanies a growth cycle in the global economy. This is the most promising time for investors because companies and enterprises normally make a stable profit, and the unemployment rate remains low. In such times, people are ready to spend and invest more, and earnings in the stock market go up.

Main characteristics of the bull market:

• Sustainable growth of asset prices. In the stock market context this means growth of market indices and stock prices. After minor corrections the quotes of securities and indices aim upwards again and regularly renew their highs.
• Positive economic reports. Bull markets normally happen when the economy either starts growing after a crisis or is already strong. Interest rates are rather low, the GDP is growing, the unemployment rate falls, and companies report increased profits.
• Demand exceeds supply. When economies are growing and the unemployment rate is low, investors try to buy and hold securities, hoping that their price will grow. A market appears that has more buyers who want to buy stocks than sellers.
• Optimistic market players. When the stock market and economic indices grow, investors become more confident. They are more optimistic and interpret even bad news as temporary moves that can provide a better price for buying on corrections.

How to trade in bull markets

When the prices of most assets grow, it is easier to make a profit than when the market is uncertain. So here are some popular strategies for trading in a bull market.

Buy and hold

This is the most popular way to invest in a bull market: investors buy assets and hold them for as long as possible, until some evidence of the end of the uptrend appear. By this strategies, positions are held for really long — from several months to years. The longer the market grows, the more profit investors can make on their assets.

In case the investor buys stocks, they make money on their price growth and dividends from the issuer as well. Hence, securities with large dividend payments are most attractive to buyers.

The strategy also uses popular stock indices: they help diversify investments because they consist of many shares of various companies.

Bottom line

The bull market is the gold age for investors: asset prices grow steadily, and all market players are optimistic. One can make a good profit, buying assets and holding them until they grow.

However, it should be realised that a reversal and the end to the bull market is hard to predict, so the rules of risk management are to be followed immaculately.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of the Independence Day

Dear Clients and Partners,​

We are informing you that changes will be made to the trading schedule due to the Independence Day in the US.

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

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on Metals (XAUUSD and XAGUSD), US indices (US30Cash, US500Cash, and USTECHCash), the Japanese index J225Cash, and CFDs on oil (Brent and WTI)

• 4 July 2022 – trading stops at 7:40 PM server time.
• 5 July 2022 – trading starts as usual.

Schedule for trading on CFDs on US stocks

• 4 July 2022 – no trading.
• 5 July 2022 – trading starts as usual.

R StocksTrader platform

Schedule for trading on Currency pairs

• 15 April 2022 - trading stops at 7:40 PM server time
• 18 April 2022 - trading as usual.

Schedule for trading on US stocks and ETFs

• 4 July 2022 – no trading.
• 5 July 2022 – trading starts as usual.

Schedule for trading on CFDs on US stocks and ETFs

• 4 July 2022 – no trading.
• 5 July 2022 – trading starts as usual.

Schedule for trading on CFDs on US indices (US500, US30, and NAS100) and the Japanese index JPY225

• 4 July 2022 – no trading.
• 5 July 2022 – trading starts as usual.

Schedule for trading on Metals (XAUUSD and XAGUSD) and CFDs on oil (WTI.oil, BRENT.oil)

• 4 July 2022 – trading stops at 7:40 PM server time.
• 5 July 2022 – trading starts as usual.

cTrader platform

Schedule for trading on Metals (XAUUSD and XAGUSD)

• 4 July 2022 – trading stops at 7:40 PM server time.
• 5 July 2022 – trading starts as usual.

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

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

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

The 136th competition of "Demo Forex" and 368th competition of "Week with CFD" have just started.
502nd competition of "Trade Day" will start on 06.07.2022at 12:00.
416th competition of "KingSize MT5" will start on 07.07.2022 at 20:00.

If you don't have enough money to start operating in the Forex market, take part in our demo contests and if you win, you will get prize money to your real account that will enable you to perform trading operations and make profit without investing your own finances.

Good luck!

Sincerely,
RoboForex Contest

 

[RoboForex Contest]

Dear traders!

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

The 136th competition of "Demo Forex" has gained "speed".
The 369th competition of "Week with CFD" started today.
At 12:00, July 13th, 2022, starts the 503rd competition of "Trade Day".
At 20:00, July 14th, 2022, starts the 417th competition of "KingSize MT5".

Let us remind you that all winners of our contests receive funds to their real trading accounts, and they can use them to perform trading operations on the Forex market without investing their own financial savings.

Good luck to all traders!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex received two prestigious global awards

Dear Clients and Partners,​

RoboForex is constantly working to enhance its services so that you can operate in the financial markets as comfortably as possible. We’re delighted to inform you that two of the company’s products have been praised by the professional community, thereby adding more awards to a great many accolades earned by RoboForex.

Two global wins for RoboForex​

The company won the award for "Best Mobile Trading App (Global)" at the Global Forex Awards - B2B 2022 and received the “Best Prime Trading Account (Global)” title at the Ultimate Fintech Awards 2022.

Trade with the market leader

• The best conditions in the industry
  
  With Prime accounts, you can invest with spreads from 0 pips, leverage up to 1:300, and an order execution speed from 0.1 seconds.
  
  
• Over 12,000 instruments
  
  Stocks, Indices, Cryptocurrencies, Metals, and other popular assets are available for trading.
  
  
• Advanced mobile solutions
  
  The R MobileTrader application developed by RoboForex has been highly appreciated by the professional community for the third year in a row.

​

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project will continue with the following exciting competitions on demo accounts:

The 136th competition of "Demo Forex" has reached its "equator".
The 370th competition of "Week with CFD" has just started.
504th competition of "Trade Day" will start on 20.07.2022, at 12:00.
418th competition of "KingSize MT5" will start on 21.07.2022, at 20:00.

Taking part in our contest will require a one-time registration procedure, and the winners who receive prize money to their real accounts will be able to use it to make profit in the Forex market.

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

Sincerely,
RoboForex Contest

 

[Vlad RF]

What Is Inflation: Reasons and Consequences

Author: Victor Gryazin

Dear Clients and Partners,​

What is inflation? What are the reasons for it? How does it influence the economy, and what methods are there to control it? In this article, we will try to answer these questions. Let us get started.

What is inflation

Inflation is the index of general growth of prices for goods and services. When prices grow, a unit of the national currency can buy fewer goods and services. Hence, inflation facilitates a decrease in the purchasing power of money. The opposite of inflation is deflation, which is a stable decline of the prices for goods and services.

In other words, inflation is the speed (expressed in pecent) of the growth of general price levels for goods and services. Inflation levels demonstrate how high prices have grown in the country over a certain timeframe. Inflation leads to an increase in the prices for various assets over time. The higher reaches inflation, the more prices grow.

How inflation influences economy

Inflation can be either a negative or positive phenomenon depending on the speed of its growth and other events in the economy. Excessive inflation is considered bad for the economy, yet no inflation at all is also a negative event. Most economists consider stable inflation of 2% a year optimum.

Here is how inflation influences the economy depending on its speed:

• Moderate inflation is under 10% a year, and thanks to being predictable and controllable it supports sustained growth of the economy and does not lead to abrupt depreciation of the national currency.
• Galloping inflation is between 10% and 100% a year. It has a negative influence over the country’s economy. Producers of goods and services prefer binding prices to some stable and convertible global currency. People try to save their money by investing it in various material goods: cars, household appliances, real estate – thus heating up prices additionally.
• Hyperinflation is especially high, above 100% a year. Quite often such inflation can be a consequence of acute political crises or wars that demand decisive actions from the government. This can totally destroy the turnover of goods and cash and the whole financial system of the country due to the loss of trust in money.

Methods of controlling inflation

The financial regulator of the country bears the responsibility of fighting back inflation. This is done by certain measures of the credit and monetary policy. Here are the main methods by which Central Banks can influence inflation.

• Deterrent credit and monetary policy is nowadays one of the most popular ways of controlling inflation. The goal of such a policy is to decrease money supply in the economy by increasing the interest rate. This helps to cool down the economy, making credits pricier and thus decreasing spendings of consumers and companies. The CB can sell securities in the open market, increse reserving norms for commercial banks, and apply other measures of selective credit control. Increases in the interest rate have a bad influence on the stock market but facilitates growth of the national currency.
• Financial measures. They include increased control of state expenses, private expenses, private and state investments. Tax regulations also belong here: the tax system must provide stimulation to those who save, invest, or produce more.
• Price control. Another efficient measure of conquering inflation is increasing production and controlling prices for goods from the basic basket, such as food, clothes, fuel, etc.

Closing thoughts

Inflation levels show how high prices have grown for certain goods and services over s certain timeframe. To assess inflation, several indices are used (CPI, PPI, WPI). Moderate inflation enhances economic growth, while high inflation have a negative influence on the economy. Control over inflation is carried out by the Central Bank; the main controlling measure is toughening of credit and monetary policy.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[tupat]

Hidup lagi

 

[Vlad RF]

How to Trade by Reversal Strategy

Author: Andrey Goilov

Dear Clients and Partners,​

One of the main principles of tech analysis is “Trend is your friend”. Hence, some insist that for better results trading must occur by the trend only. However, any trend eventually comes to an end. A bull trend ends and changes or a bear one, and vice versa – see some examples on the charts.

The strategy we are about to discuss is called Reversal. The name makes it clear that here the trader is to wait for the trend to end and enter the market in the opposite direction. The timeframe is H4, which means the strategy does not require much time spent in front of the computer, tracking the price. The authors note that the method is quite easy to use, and risk management rules allow placing a Stop Loss much lower than the Take Profit.

In the article, we will see how to use the ZigZag and MA indicators to catch the end of the trend and enter by the new trend.

Setting up indicators for strategy

The method is applicable for two currency pairs only: EUR/USD and GBP/USD. These are popular instruments these days; also, movements of GBP/USD will be the strongest. To start trading, two indicators need to be added to the chart:

1. Simple Moving Average with period 18
2. ZigZag with period 150

Let us discuss each of these indicators for better understanding the Reversal strategy. Also, while the MA is, in essense, a basic instrument known by each trader, ZigZag is not so widespread.

Simple Moving Average

The method is based on the signals given by the SMA. It is super user-friendly: if prices are above the indicator line, it is a signal to buy. And if the price breaks the line from above, look for signals to sell. As a rule, this indicator is used in every trend strategy.

How to buy by Reversal strategy

After adding all the instrument to the chart, let us look into the details of opening long positions:

1. ZigZag values reach their lows. The indicator helps define important levels on the chart. If the indicator values reach the lows, a good bounce upwards is likely to follow.

2. Price breaks through the SMA upwards. Check out the Close price of the candlestick: if the price turns out to be above the MA, the breakaway is true, so a buying trade can be opened at the opening of the next candlestick. This is the second signal by the strategy, which is necessary to avoid entering the market at each low shown by ZigZag. When the price breaks through the MA from below, this will be a signal for the beginning of an uptrend.

Bottom line

The Reversal strategy is an easy way to catch the change of the market trend. The advantages of the method are availability of the indicators: there is no need to look for anything extra and go deep into details. The potential goal is 3-4 times bigger than the loss, which allows for covering several losing trades by one profitable. However, trade occurs on H4 with altered ZigZag values, signals will be scarce, and only two currency pairs suit the strategy. This must be the only serious drawback of the strategy. Apart from this, this is a simple strategy with clear entry and exit rules.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project, as usual, is waiting for you in the following competitions:

The 136th competition of "Demo Forex" has entered the final stage.
The 371st competition of "Week with CFD" has started today.
505th competition of "Trade Day" will start on 27.07.2022 at 12:00.
419th competition of "KingSize MT5" will start on 28.07.2022 at 20:00.

We remind you that all winners of our demo contests receive prize funds to their real trading accounts, so they could use them to perform trading operations in the Forex market without investing their financial savings.

If you want to be one of them, join us!

Sincerely,
RoboForex Contest