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  • Vlad RF
    replied
    How to Profit from Growing Uranium Prices?

    Author: Eugene Savitsky


    Market players already understand that in 2022, the QE monetary policy will be coming to an end, and the US Federal Reserve System will increase the interest rate.

    This understanding makes investors every time less optimistic and sends stock indices down. For example, NASDAQ Composite (NAS100) has lost 4% since the beginning of the year, and S&P 500 (US500) – 1.5%. Dow Jones Industrial Average (US30) is the only one to withstand the troubles: its decline remains within 1%.

    In such a market, do not hurry to buy even those shares that look promising. Their prices may fall even deeper down. However, we still need to look for efficient investment ideas. So, in this article I am driving your attention to the green energy sector and another one that is somewhat connected – the atomic energy sector.

    Some history

    Canada is a country with the largest territory in North America. The name of the country stands for “kanata”, which means “settlement, land” in the language of local Indian people. The history of Canada started in 1534 when a French seafarer Jacques Cartier explored the country. One of the first French colonies was founded on the territory of modern Quebec, initially populated by indigenous people.

    Canada is a federative country that consists of ten provinces and three territories. As early as the 1850s, the country gave up the colonial Canadian pound and switched to the Canadian dollar. Traders also use a slang name “loony”, from “loon”, the name of the bird on the 1 dollar coin. This bird is a mascot o Canada. Since 1970, the CAD has been a free tradable currency; the monetary policy is regulated by the Bank of Canada, the Central Bank of the country.

    The CAD is a popular currency that takes part in 3% of all trading operations of international trade. Many leading countries keep a part of their gold reserves in the CAD. Thanks to free conversion and good volatility, the CAD is one of the seven Forex majors.

    Looking for clean energy

    Renewable energy sources (sun and wind) cannot replace hydrocarbons yet because the humanity has not figured out how to store lots of energy for a long time.

    Using solar and wind power, people become dependent on weather.
    Meanwhile, hydrocarbons are more user-friendly and reliable, as well as economically efficient. However, it has a negative influence on the environment. Ecological concerns and the threat of global warming make people look for replacements for hydrocarbons.

    Options are few:
    • Solar energy
    • Wind energy
    • Sea wave energy
    • Water energy
    • Atomic energy
    • Thermonuclear energy
    Why we do not use thermonuclear energy

    Thermonuclear energy is a dream of the humanity. First attempts to get electricity from thermonuclear reactions were made as long ago as in 1950. yet, scientists fail to achieve any satisfactory results: they still spend more energy on carrying out those processes than they get in the end.

    This sector is developing actively anyway. A good example is the International Thermonuclear Experimental Reactor project, originating back in 1980. Nowadays, no one can confidently say when the dream will come true, while we need electricity every day, and the need for it is growing constantly.

    The EU plans to consider atomic energy “green”

    Some steps have already been made in this direction. On January 1st, the Euro Commission presented to member countries a draft bill where it is suggested to consider atomic energy ecologically clean. This means financing of nuclear energy plants construction at least until 2045.

    Germany opposes constructing nuclear energy plants

    Germany speaks against this project, referring to the consequences of nuclear power plants accidents. German government does not only speak against this project – it takes actions.

    By January 1st, it had shut down three nuclear power plants, leaving just three more in the energy system of the country, that are also going to be shut down by the end of 2022.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to Trade USD/CAD Currency Pair?

    Author: Victor Gryazin


    USD/CAD – US dollar vs Canadian dollar – is a major currency pair, popular in the Forex market. Let us see, what influences its quotations and what the main trading methods are.

    Some history

    Canada is a country with the largest territory in North America. The name of the country stands for “kanata”, which means “settlement, land” in the language of local Indian people. The history of Canada started in 1534 when a French seafarer Jacques Cartier explored the country. One of the first French colonies was founded on the territory of modern Quebec, initially populated by indigenous people.

    Canada is a federative country that consists of ten provinces and three territories. As early as the 1850s, the country gave up the colonial Canadian pound and switched to the Canadian dollar. Traders also use a slang name “loony”, from “loon”, the name of the bird on the 1 dollar coin. This bird is a mascot o Canada. Since 1970, the CAD has been a free tradable currency; the monetary policy is regulated by the Bank of Canada, the Central Bank of the country.

    The CAD is a popular currency that takes part in 3% of all trading operations of international trade. Many leading countries keep a part of their gold reserves in the CAD. Thanks to free conversion and good volatility, the CAD is one of the seven Forex majors.

    Trading characteristics of USD/CAD

    USD/CAD demonstrates the relation of the US dollar to the Canadian dollar. The quotation demonstrates how many Canadian dollars you will need to buy one Us dollar. The growth of USD/CAD means that the USD becomes stronger on the expense of the CAD. And when the USD/CAD falls, the CAD becomes stronger against the USD.

    Here are several trading characteristics of the USD/CAD:
    • Trading time: the pair trades 24/7 except weekends and holidays. Its trading volumes and volatility reach their peaks during the American trading session when important economic statistics from the USA and Canada is published, influencing the quotations of the pair.
    • Volatility: USD/CAD is a quite volatile pair. Its average daily movements are about 80-100 points. Strong surges bring the volatility to 200-300 points a day for a short while.
    • Spread: this pair is a major, popular and liquid enough for the spread to be small. On popular ECN accounts in normal market conditions it amounts to 1-1.5 points.
    Trading USD/CAD

    To trade the pair, you can use fundamental analysis, tech analysis, and indicators.

    Fundamental analysis
    This approach analyzes various fundamental factors: economic statistics, expectations of changes in the interest rate, or the current trend in global currency and commodity markets.

    Example:

    In 2020, when the stock market collapsed due to the pandemic, global oil prices were falling fast. At that time, two negative factors at once influenced the CAD: the US dollar was growing because investors were fleeting from risks, and oil prices were falling. As a result, the USD/CAD pair was growing fast; one could buy it and hold until its growth stopped with the end of the acute phase of the crisis and the beginning of economic recovery.

    https://blog.roboforex.com/wp-content/uploads/2021/12/usdcad-fundament-1020x630.png

    Closing thoughts

    Thanks to good liquidity, volatility, and a small spread, USD/CAD is actively used by Forex traders. Trading decisions are based on various methods, including analysis of economic statistics, price charts, and indicator signals.

    To get started, use a demo account so you could practice and only then switch to a real account with minimal risks.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex: upcoming changes to the trading schedule in view of Martin Luther King Jr. Day in the US


    We are informing you that due to the public holiday in the USA, Martin Luther King Jr. Day in the US, there will be some changes to the trading schedule*.

    MetaTrader 4 / MetaTrader 5 platforms

    Schedule for trading on CFDs on US indices (US30Cash, US500Cash, USTECHCash) and Japanese index JP225Cash
    • 17 January 2022 – trading stops at 7:45 PM server time.
    • 18 January 2022 – trading starts as usual.
    Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on oil (Brent, WTI)
    • 17 January 2022 – trading stops at 7:45 PM server time.
    • 18 January 2022 – trading starts as usual.
    Schedule for trading on CFDs on US stocks
    • 17 January 2022 – no trading.
    • 18 January 2022 – trading starts as usual.

    R StocksTrader platform

    Schedule for trading on US stocks, CFDs on US stocks, and ETFs
    • 17 January 2022 – no trading.
    • 18 January 2022 – trading starts as usual.
    Schedule for trading on CFDs on US indices (US500, US30, NAS100)
    • 17 January 2022 – no trading.
    • 18 January 2022 – trading starts as usual.
    Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (BRENT.oil, WTI.oil)
    • 17 January 2022 – no trading.
    • 18 January 2022 – trading starts as usual.

    cTrader platform

    Schedule for trading on Metals (XAUUSD, XAGUSD)
    • 17 January 2022 – trading stops at 7:45 PM server time.
    • 18 January 2022 – trading starts 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

    Leave a comment:


  • Vlad RF
    replied
    What Are Fractional Shares, and How to Use Them for Investments?

    Author: Maks Artemov


    Every day more and more people get interested in investments and the stock market. However, not every investor has a sum substantial for a starting capital. Naturally, you can borrow money from your friends or a bank, but in this case, psychology will work against you, and if you make a mistake, you will have to return the loaned money as well.

    Future and beginning investors have a stereotype that they need a serious sum to get started. However, nowadays this idea is not completely fair.

    Clearly, a million dollar is more efficient and nicer to invest, but what beginners with a modest capital should do? Here is where fractional shares come to the scene: they let you buy a share even in expensive companies for the money you actually have.

    This means you buy a part of a share and become a co-owner of the company. Of course, such a way of shareholding has certain details, and in some cases there is no way to give a voice to a holder of a fractional share, yet there are advantages as well.

    What is a fractional share?

    A fractional share is a normal share broken down into several parts. There are several reasons for and goals of such a split and one of them is to give small investors an opportunity to buy a share in the company, driving more money into the company.

    The share price of many companies is much more than 1,000 USD, which sifts away a lot of potential investors. This is the problem that stock split is to solve.

    Where do fractional shares appear from?
    • Consolidation of shares is the process of uniting several shares in one. In this case, so-called remainders appear sometimes. They cannot be united in one share for some reasons and turn into fractional shares in the end.
    • During additional issue of shares new shares get to the market, and shareholders can buy new shares in proportion to those they already have. In this case, fractional shares can also appear.
    • As a result of merger or acquisition of companies fractional shares can also appear. They trade and participate in all other processes as normal shares do, only proportional to their volume.
    • Stocks split of a broker: a broker gathers applications from those who want a certain share, buy it when possible, and spreads it between the participants. However, the share itself is kept by the broker, while fractional shareholders own their parts and can sell it to the broker at any moment.
    How to trade fractional shares

    There is nothing supernatural in trading fractional shares. The quotations are the same as with a normal share, and you can use any trading strategy.

    For example, you can use fundamental analysis alongside tech analysis. If you invest medium-term and long-term, you will have to study the work of the company carefully and spread the money in the portfolio wisely.

    Trading fractional shares imposes the same obligations on you and the same risks as when you trade a share or a pack of shares.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    Financial Reports of Companies: Main Reference Point for Investors

    Author: Maks Artemov


    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

    Leave a comment:


  • Vlad RF
    replied
    How to Trade Marubozu Candlestick Pattern?

    Author: Victor Gryazin

    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 side
    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.

    https://blog.roboforex.com/wp-content/uploads/2021/12/Marubozu.png

    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

    Leave a comment:


  • Vlad RF
    replied
    What Are Futures and How to Trade Them?

    Author: Andrey Goilov

    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

    Leave a comment:


  • Vlad RF
    replied
    RoboForex receives the "Best Stocks Broker (Global)" Award


    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!

    Start trading


    Sincerely,
    RoboForex team

    Leave a comment:


  • momo3HC
    replied
    A lot of useful info here. Cheers.

    Leave a comment:


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


    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

    Leave a comment:


  • Vlad RF
    replied
    How to Choose Shares for Investing in Correcting Market

    Author: Eugene Savitsky


    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.

    https://blog.roboforex.com/wp-content/uploads/2021/12/GXO-D1-1200x620.png

    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

    Leave a comment:


  • Vlad RF
    replied
    How to Use EPS for Evaluating Shares

    Author: Victor Gryazin


    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:

    https://blog.roboforex.com/wp-content/uploads/2021/12/eps-1200x599.png

    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

    Leave a comment:


  • Vlad RF
    replied
    How to Trade Dragon Pattern: Manual

    Author: Andrey Goilov


    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.

    https://blog.roboforex.com/wp-content/uploads/2021/11/Pic-1-2.png

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

    https://blog.roboforex.com/wp-content/uploads/2021/11/Pic-2-2.png

    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

    Leave a comment:


  • Vlad RF
    replied
    How to Use Personal Income and Personal Spending in For example

    Author: Victor Gryazin


    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.

    https://blog.roboforex.com/wp-content/uploads/2021/11/pi-calendar-1200x570.png

    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

    Leave a comment:


  • Vlad RF
    replied
    RoboForex adds over 500 instruments to R StocksTrader, including fractional shares



    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!


    https://a.radikal.ru/a14/2111/be/d735f19cf7fd.png

    Learn more about trading Stocks >


    Sincerely,
    RoboForex team

    Leave a comment:

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