ForexGen Trading

ForexGen Money Management

2009-01-08T15:08:00.000-08:00

Trends Again you have probably heard the maxim "the trend is your friend" and it is true. Currencies have long periods where they are either in an upward or a downward trend. All you have to do is get on the right side of the trend and you are in the money and Forex trading software can help you do this so you don't have to be in front of the computer constantly.

Once you are in the market riding either an upward or downward trend, ride it all the way to the beach.
Get yourself some Forex trading software that identifies trends, entry and exit points and get started. Apply good money management and you will maximize your profits and minimize your losses.

How To Choose Your Forex Broker ??!

2009-01-08T15:01:00.000-08:00

The best thing to do is to find these legitimate companies to stay away from fraudulent ones. However, most new traders fall prey to these scammers because of their savory offers.
Don't get fooled by the companies that advertise high profits for minimal risks. The fact is that, if you want to earn high profits, then you are likely subjected to high risks as well. Higher rate of profit means higher risk.

So, always stay on the safer side. If you're looking for a forex trading broker, and since each broker is part of a certain company, make sure that you select a government registered company. In signing any contract with them, double check if they are registered or certified brokers. This is one basic precaution that will prevent any misfortune that you might encounter in the future.
The job of reducing the risk is entirely yours, not that of the broker; so if the company offers or promises little risks, guaranteed profits, and the like, that is a sure sign that they are there to make a fool out of you.

Even if you are not a professional trader, a little use of the common sense can help in long run.

Emotion Plays No Role in Forex Trading

2009-01-08T14:53:00.000-08:00

All market trading is a form of gambling, and as any gambler will tell you the bets most likely to work out badly are ones based on emotion. All traders have gut instincts, but a trade should always be well thought out and based on facts or research. Gut instincts may be right every now and then, but most of the time they are a result of greed or fear and can cost you a lot of money. Before each trade, use a diary to map out a solid plan of entry based on your trading system signals

For example, knowing when to exit a deal is vitally important, so you should know at which point you’re going to pull out, both on the high side (a winner) and on the low side (a loser). When the deal hits this price, follow your plan to exit no matter what your emotions are telling you.
Continual learning might seem obvious, but you’ll be surprise how many beginners read one book and think they know everything. All of the greatest traders are continually learning from their successes and especially their mistakes to get better. There are literally hundreds of strategies you can follow with Forex, and learning more about new ones can fine tune your trading and increase your profits.

The geographical location of the broker

2009-01-08T14:34:00.000-08:00

The first thing I look for is the geographical location of the broker. If I find that they are based in a country where the financial industry is, in my opinion, relatively unregulated and under-developed, I quickly forgo signing up. This is terrible news for honest brokers in those countries, but your job as a trader is to protect your capital. If you loose that, then you cannot trade. The onus is on them to convince you that they will do the right thing by you as an investor.
I started out with an Australian broker. Currently I am using an American one. I have not tried UK-based brokers but the British financial industry is one of the best. Companies that are based in countries such as Japan , Germany and France are probably just as good too, if their website speaks your language.

Notice any license numbers that they may have registered with regulatory bodies that act like government watchdogs who oversee the finance and investments industries. These are organizations that impose strict rules to safeguard your investment. Some of these rules may include the requirement that brokers segregate all customer funds from the operational funds of the business. Your money is required to be put in highly-reputable banks and the funds are only withdrawn from these accounts upon specific withdrawal requests.

Win Cash Prizes

2009-01-08T14:23:00.000-08:00

Win Cash Prizes with ForexGen

ForexGen has the pleasure to announce the launching of the Demo Account contest on the first of every month.

Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com including the following information:
- Full name:
- Phone number

Also provide us with the following identification document:

" Certified copy of the information pages of account holder current valid passport or government issued photo ID"

After we receive your request we will provide you with further details and with your demo account login information which will be used in the trading contest.

The Lowest spreads in the market

2009-01-07T13:33:00.000-08:00

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.

Forex Signal Trading:

2009-01-07T13:30:00.000-08:00

If the core equity level falls, you can lower your risk amount, while you can also raise the risk level as your core equity rises. Just as on a profit of $8000, the core equity can rise to $18,000. Similarly, on limiting risk to $800, the core equity will fall to $8000. Experts opine that as you enter a position, it is advisable to try to limit risk to 1% to 3% of each trade. This reiterates the fact that, on trading a standard FOREX lot of $100,000, your risk should be limited between $1000 and $3000.

Forex Money Management is all about calculated risks at the right time and protecting your assets. It is imperative to understand that when placing options, and buying them; it is wise to get plenty of time on your side. Although, traders are known to identify trade direction, however, most fail to stay with trades simply because they cannot implement their money management correctly.

Forex Money Management

2009-01-07T13:29:00.000-08:00

Any trading strategy is incomplete without Forex Money Management. It is not only about knowing the ins and outs of which currencies to trade and identify the entry and exit signals, it is also about manage the resources and integrating money management into the trading plan. It is essential for a trader to meticulously position size, margin, recent profits and losses and any contingency plans before foraying into the market.

Based on money management strategy, diversification, martingale and anti-martingale strategy and high return strategy, the various strategies for Forex Money Management are formulated for approaching money management. Most of them rely on the calculation of core equity – which is the starting balance minus the money used in open positions. If the starting balance is $10,000 and you have $1000 in open positions, your core equity is $9000. It is imperative that as a trader you need to adjust the dollar amount of your risk, with the rise and fall of the core equity.

How can you learn from The Stock Market Competition ??

2009-01-07T13:25:00.000-08:00

some several different variations but the ultimate objective are always same at the stock market competition. How will the competition goal help the teaching assistant the stock market
operation use genuine money and the true stock market statistics. This meaning is having the usual several teams and the student or the player is divided the team. Has the most moneys in the terminal the team usually to win some kind of prize for to make the best financial decision.

Many schools and the use stock market competition help the teaching assistant to use in fact in the true life some advance skills in the arithmetic. This is a huge way helps the student to obtain some with otherwise not to be able to be possible as well as helps a middle most universal form existence at the experience by the arithmetic which the teaching assistant probably invests in the world method. Has traded take many companies is one kind of extremely unwise investment investigates the stock market performance stock market in it as the student and other people to compete several circles in front of in the investment genuine money stock market.

what should you look for in a broker?

2009-01-07T13:17:00.000-08:00

First,forex brokers should offer competitive spreads, or the difference between the selling and buying prices of a certain currency. Good forex brokers competition offer anywhere between 3 and 5 pips, the ideal spreads that can make sure you are gaining from your investment. Avoid as much as possible those forex brokers competition that offer variable spreads, as you may find a spread that suddenly widens during a busy market, which is where you would gain money, but only if the market is bullish.

Another good indication of a reliable broker is one who uses a secure online connection to take payments and funding for your forex currency account. This ensures smooth trading, because you don’t have to make time-consuming e-commerce transactions just to get money into your account, and another transaction to transfer profits to your bank account. Remember, you don’t only trade, but you also have to look at forex brokers competition data in order to make decisions. You don’t have the time to make time-consuming transactions in between.
Next, as a way to maximize your potential profits when engaging in the trade, you need to have a forex broker competition that will grant a leverage of about 200:1. This is the ideal leverage that forex brokers competitive should have; however, there are some that offer higher leverages. These leverages even reach 400:1 as a maximum, offering your higher potential profits from your forex currency trade.

The Concept Of Leverage In Forex

2009-01-06T15:02:00.000-08:00

One of the main attractions to trade forex is big leverage and allows currency traders to borrow money and use that money to to profit from the fluctuations in exchange rates between two currencies. The leverage usable in forex trading is one of the highest that traders can obtain. Leveraged trading means that you are not required to pay the full value of the trading position but only small part of it.

Because of the big leverage in foreign exchange, traders are able to make large investments without a huge amount of trading capital, whereas in other financial markets such as the stock market, investors would have to pay 50% of the full amount for each share they were investing in.

The Margin Call in The Forex Market

2009-01-06T14:58:00.000-08:00

A forex broker will close your open position(s) immediately if the equity in your trading account drops below the margin requirement. This to prevent you from negative account balances.

For example:

Assume you have a trading account with $20,000 and margin requirement is set to 100:1. Without any open positions, your usable margin is $20,000.

Getting a margin call scenario:

You use $15,000 to buy 15 lots of EUR/USD, you now have $5,000 of usable margin left. This means that you are allowed to lose $5,000 on the open postion before you are under the margin requirement.

Why ForexGen

2009-01-06T14:51:00.000-08:00

A Forex Market Order

2009-01-06T14:47:00.000-08:00

This is an order to buy or sell a given currency at the current market price. This means that the trader will be buying at the “current” ask or selling at the “current” bid that is quoted. The market order can be used to enter or exit trades. When placing a market order, the currency trader specifies the currency pair that he wants to buy or sell and the number of lots or contracts he wants to trade.

With most currency trading platforms, this order is placed with a single click and is executed instantly at the current rate quoted.
Often small market makers are unable to fill market orders instantly and usually re-quote traders. This can be a major source of problems as unnecessary costs of trading are incurred that can affect performance over time and the profitability of each trade.
However, this type of order is very popular with certain trading strategies i.e. strategies which react to market conditions and require instantaneous execution of a trading position, ether to enter or exit.

British Pound Drops To 13-Year Lows

2009-01-06T14:17:00.000-08:00

The British pound remains one of the few currencies that hasn’t taken full advantage of the US dollar’s plunge. Following up on yesterday’s disappointing revision in fourth quarter private consumption, the GfK Consumer Confidence survey for February crossed the wires with a sharper-than-expected drop.

This indicator was initially scheduled for release on Friday, which added to the surprise of a -17 reading that was the most pessimistic the report has read in 13 years. Sinking confidence in Brit’s outlook for growth and their own financial position isn’t surprising considering the worsening housing slump and steadily rising prices that have eaten into discretionary spending.

The trading conditions:

2009-01-05T16:22:00.000-08:00

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Understanding Forex Spreads

2009-01-05T16:16:00.000-08:00

Spreads should always be considered in conjunction with depth of book. Oddly enough, when it comes to economies of scale, forex doesn't even act like most other markets. On the inter-bank market, for example; the larger the ticket size, the larger the spread is. So when you see a 1-pip spread on an ECN platform, you have to wonder if that spread valid for a $2M, $5M or $10M trade, which it probably isn’t. In many cases, the tight spread that is offered applies only to a capped trade sizes that are very inadequate for most of the common trading strategies.

Forex Trading

2009-01-05T16:11:00.000-08:00

They create vast fortunes easily trading foreign currencies.
Thereafter, using this great wealth, they create factories to manufacture consumer goods and products and hire you, Joe Bloke to work in those factories, banks and jobs at minimum wages.

So, it is no wonder why they don’t want you to know about the REAL TRUTH and “SECRET” on how to generate great wealth through foreign currency trading.

If you know how to trade foreign currency and generate $100,000 monthly for life, will you be idiotic, naïve and crazy to go to work at these DEAD END jobs to earn minimum wages and be paid nickels and dimes?

So, there has been a persistent organized campaign by the powers that be, the Money Elite to KEEP AWAY AND HIDE these “SECRETS” of creating vast wealth from foreign currency trading.

Foreign Currency or Forex Trading

2009-01-05T16:05:00.000-08:00

Foreign currency trading is the most profitable and powerful way to make money today in the world.
It is a 2.5 trillion dollars daily global market and business.
For this reason the knowledge and the secrets of how to do it successfully have been kept away from the public for thousands of years.

This is because it is the jealously guarded “SECRET” of how the “Money and Power” Elites, the multi-national and multi-billion dollars corporations, largest banks and governments of the world, the “Movers & Shakers” of International Banking & Finance, Business moguls & Tycoons, CEOs of major Corporations, secret societies and the privileged blue bloodlines of the Wealthiest Families of Europe and the Americas make their money and get rich.

Why is Forex trading training so important?

2009-01-05T16:02:00.000-08:00

(1) The investor or trader is definitely not going to become a walking encyclopedia at the completion of the training, but is going to be far better equipped to deal with the ups and downs of foreign currency trading than before!

(2) If this business is treated as a continuous learning platform, the investor/trader is heading for more gains and less losses. He/She will have a better idea about planning good strategies so that risks are minimized.

(3) By getting Forex trading training, the trader/investor has an edge over others in the same community. After all, he/she is enhancing his/her trading skills.

Opening an Account Online

2009-01-04T17:09:00.000-08:00

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.

ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

ForexGen Money Manager

2009-01-04T17:05:00.000-08:00

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

ForexGen Introducing Brokers

2009-01-04T17:02:00.000-08:00

Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.

WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?

* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.

In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.

Individualized service

[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ffers 1 pip spread on 10 pairs with high trading techniques that make [ForexGen]
incomparable to any other rival.

Bonds, Dollar Hold Steady Light Post-Holiday Trade

2009-01-04T17:01:00.000-08:00

With few investors trading and fewer indicators to base trades on, the dollar and government bonds held tight Friday.
Treasurys resumed trade Friday after the market was closed Thursday for the Christmas holiday. Some bond market participants took an extended break, and many foreign investors are off for Boxing Day.
Despite a record auction of $120 billion in bonds earlier in the week, the huge increase in Treasury supply has done little to move bond prices significantly lower or yields higher off their all-time lows.

Private investor and corporate demand for government bonds remains high, as the stock and commodities markets continue the volatility that has persisted throughout the year and especially in the past three months. Looking for a safe alternative, investors have opted to buy up Treasurys with the hope that government bonds will provide a secure investment - if yields are low.
As a result, Treasury bonds have been one of the best performing assets this year, returning 14.3% to investors, according to a Lehman Brothers index. Investors holding S&P 500-based index funds, on the other hand, have lost more than 40% of their investment so far in 2008.
Most economists say dour economic news will continue well into next year, and analysts forecast Treasurys will continue to rise for at least several more months, pushing yields even lower. Yields on the 2-year, 10-year and 30-year Treasurys all hit record lows last week before rising slightly in the past three sessions.

Bond prices: The 10-year note edged up 15/32 to 114 10/32, and its yield fell to 2.16% from 2.14% from Wednesday. Bond prices and yields move in opposite directions.
The 30-year long bond rose 20/32 to 138 22/32, and yielded 2.6%, down from 2.63%.
The 2-year note rose 1/32 to 99 31/32, and its yield dropped to 0.9% from 0.92%.
The yield on the 3-month note rose held steady at 0.015%, though it has been hovering around 0% for two weeks. Yields near the zero mark on short-term bills are an indication that investors are completely risk-averse, prioritizing safety above profit.

Libor rates, which have fallen considerably since the credit crisis' peak in late October, were not tallied Friday due to the bank holiday in the U.K.
Dollar: The U.S. dollar fell very slightly against the euro but rose against the yen and pound as investors digested a barrage of economic data ahead of the holiday.

Analysts said dollar movements were very subtle due to such low trading volume, and do not reflect any trend or economic news. Markets were mostly closed abroad.
The euro edged 0.3% higher against the dollar to trade at $1.4072, from $1.4028 late Wednesday in New York.
The British pound fell 0.2% to $1.4697 from $1.4728.
Against the Japanese yen, the dollar rose 1.5% to ¥90.57 from ¥90.96.

The Concept Of Leverage In Forex

2009-01-04T16:58:00.000-08:00

One of the main attractions to trade forex is big leverage and allows currency traders to borrow money and use that money to profit from the fluctuations in exchange rates between two currencies. The leverage usable in forex trading

Because of the big leverage in foreign exchange, traders are able to make large investments without a huge amount of trading capital, whereas in other financial markets such as the stock market, investors would have to pay 50% of the full amount for each share they were investing in.

Forex provides much more leverage than stocks or futures, allowing positions to be leveraged up to 100:1 or even 200:1 depending on the forex broker and the size of the position taken. This means that if a currency trader wanted to buy a “lot” worth $100,000, with 100:1 leverage, the trader only has to put up $1,000 of his own money into his margin account! With leverage, you can achieve higher returns on a smaller market movement. is one of the highest that traders can obtain. Leveraged trading means that you are not required to pay the full value of the trading position but only small part of it.

Forex Money Management and The Use of Leverage

2009-01-01T16:45:00.000-08:00

Last week we talked about the use of a 1:2 risk to reward on our trades and the use of a trailing stop to manage those trades in an attempt to be consistently profitable. But we also have to keep track of our account balance so we have funds to be in a position to take the solid trading opportunities we find.
Too many new traders will open a trade using too much leverage in an attempt to get a big win. More often than not, these trades end up as losing more money than was necessary. I recommend only risking about 5% of your account balance at any one time. If you have a mini account with a balance of $2000, then you should risk no more than $100 on a trade. This way your losses will not keep you from having the funds to take the next trade.
This does not mean to open 10 trades at once and risk $100 on each one, but to risk no more than 5% at any one time. Buying the GBP/USD and the EUR/USD at the same time is not really that different. You are looking for USD weakness in both trades which means that you are more than likely to profit on both or to lose on both. A better approach would be to open one trade risking 5% of your account balance and not open another trade until the trailing stop on the first trade is moved up to breakeven.
Then your risk on the first trade is theoretically at zero and you can now risk that 5% on a new trading opportunity. If the market is trending strongly and offering many trading opportunities, you can take advantage of the situation by having multiple positions open at the same time while still risking no more than 5% of your equity
So when you think of money management, think about how much you are risking on the trade and how much of your account balance you are risking. They are both key elements to successful trading and should be an important part of your trading approach.

Buying New Highs and Selling New Lows

2009-01-01T16:39:00.001-08:00

One of the oldest and most powerful money management strategies used to enter into and exit out of trades is using new highs and new lows over a certain period of time.An example would be to sell a new 10-day low to enter into the trade and use a new 10-day high as your trailing protective stop.

This allows one to trade on the daily chart without having to follow the market throughout day. To set your trailing stop, you just have to check the daily chart after the 5PM Eastern close to see what the highest high of the 10 previous days was. If it was different from the previous day’s stop level, you just move your stop, if not, you leave it alone.

You can do this until the market comes back up to stop you out, meaning you are trying to get the most out of the move. The key is to only trade in the direction of the trend as that is where you will find some of the biggest moves.

much as a new 40-day high or low to enter into or exit out of a trade. You can also use this approach on an intraday chart, although I would recommend using higher values.

Perhaps a 20-period high or low on the 4-hour or hourly chart would be more appropriate than a 10-period high or low. You have to check to make sure. But it is easy to backtest this approach as it is easy to identify new highs and lows….either they are or they aren’t. The key to trading on the intraday charts is once again to only trade in the direction of the daily trend.

While this money management approach may not be perfect, it is better than most money management strategies used in the markets and is relatively easy to use. That makes it a valuable tool worth looking into by traders who currently struggle with how to get into and out of a trade

What are the best times to trade for individual currency pairs?

2009-01-01T16:26:00.000-08:00

The foreign exchange market operates 24 hours a day and as a result it is impossible for a trader to track every single market movement and make an immediate response at all times. Timing is everything in currency trading. In order to devise an effective and time-efficient investment strategy, it is important to note the amount of market activity around the clock in order to maximize the number of trading opportunities during a trader’s own market hours. Besides liquidity, a currency pair’s trading range is also heavily dependent on geographical location and macroeconomic factors. Knowing what time of day a currency pair has the widest or narrowest trading range will undoubtedly help traders improve their investment utility due to better capital allocation. This chapter outlines the typical trading activity of major currency pairs in different time zones to see when they are the most volatile.

For example : Asian Session (Tokyo): 7 P.m.–4 A.m. EST FX trading in Asia is conducted in major regional financial hubs; during the Asian trading session, Tokyo takes the largest market share, followed by Hong Kong and Singapore. Despite the flagging influence of the Japanese central bank on the FX market, Tokyo remains one of the most important Dealing centers in Asia. It is the first major Asian market to open, and many large participants often use the trade momentum there as the benchmark to gauge market dynamics as well as to devise their trading strategies. Trading in Tokyo can be thin from time to time; but large investment banks and hedge funds are known to try to use the Asian session to run important stop and option barrier levels. Figure 5.1 provides a ranking of the different currency pairs and their ranges during the Asian trading session. For the more risk-tolerant traders, USD/JPY, GBP/CHF, and GBP/JPY are good picks because their broad ranges provide short-term traders with lucrative profit potentials, averaging 90 pips. Foreign investment banks and institutional investors, which hold mostly dollar-dominated assets, generate a significant amount of USD/JPY transactions when they enter the Japanese equity and bond markets. Japan’s central bank, with more than $800 billion of U.S. Treasury securities, also plays an influential role in affecting the supply and demand of USD/JPY through its open market operations. Last but not least, large Japanese exporters are known to use the Tokyo trading hours to repatriate their foreign earnings, heightening the fluctuation of the currency pair. GBP/CHF and GBP/JPY remain highly volatile as central bankers and large players start to scale themselves into positions in anticipation of the opening of the European session.

Know Your Currencies

2009-01-01T16:06:00.000-08:00

In the forex markets, it’s worth knowing the characteristics of the currency pairs, since each of them exhibit distinct identities. Most of the currencies exhibit similar movement patterns, which can help a trader confirm price movements. One such close relation can be found between the EUR/USD & USD/CHF.

The price movements of these two currency pairs are absolute mirror images. In short, they have an inverse relationship. If Eur/Usd is rallying, then Usd/Chf should have downward movement, and vice-versa.

The following chart has a comparative price movement of both these currencies, and this inverse relation can be seen very clearly

how does one take advantage of this?

The most obvious fact is that one must not trade both the currencies at the same time. If one is long the Eur/Usd, logically one should not be long the Usd/Chf at the same time, since the Usd/Chf would have a downward movement.

And…neither is it advisable to take opposing trades on these two pairs, because if the trade goes wrong, then the trader would incur losses in both the trades.

Ideally, one should trade either of the two pairs. The best way to take advantage of this fact is to cross-check a trade by looking for confirmation factors on the other pair. If a trader is planning to take a long position in the Eur/Usd, he can look for a similar short setup on the Usd/Chf. If such an opposite setup is present in the Usd/Chf, it only adds further credence to his long Eur/Usd trade.

There are other currency pairs also which exhibit a close relation. Another fact is that each currency has an approximate Average Daily Trading Range (also known as the ADR), which it follows in the normal course of the trading day.

While this is not written in stone, it serves a good thumb rule to estimate the movement of the particular currency. Thus it is worth studying these relationships…to gain a higher edge in the market. Sometimes it is this basic knowledge, which can be the dividing line between success and failure.

Know Yourself, Know Your Setup

2009-01-01T15:56:00.000-08:00

Who are you? What are your strengths and what are your weaknesses? Do you thrive amidst chaos or require regimentation and stability? In trading, the answers to these questions are far more important than any setup you can devise.

At its core, trading is a game of psychology, and no amount of reading, no computerized back-testing, no advanced seminar work will produce long-term success if your trading style is in conflict with your basic personality. Contrary to popular belief, successful traders do not change their approaches to adjust to the market but rather find market environments that best suit their inherent strengths.

That’s why in books like Jack D. Schwager’s Market Wizards (New York Institute of Finance, 1989; HarperBusiness, 1993) you will find very successful traders following diametrically opposite approaches to the market and often dispensing what appears to be contradictory advice. In fact, it’s not at all inconceivable to imagine two market wizards taking opposite sides of the same trade yet both walking away with a profit.

To market novices this idea may seem completely illogical. In most businesses we are taught that there is always an optimal way of doing things, that certain processes will be far superior to others. Clearly that’s the case with engineering, where scientific rules of optimization and refinement apply to everything from car production to bridge building. Financial markets, however, are emotional mechanisms, which is why engineering-based solutions to trading inevitably fail.

Financial markets are extraordinarily complex with a multitude of players, each with a different agenda and time perspective, providing the trader with a variety of opportunities for profit. Since the currency market is the largest financial market of all, the flexibility to craft a strategy conducive to your specific personality is even better in FX than in any other market.

Chart patterns

2008-12-30T13:15:00.000-08:00

There are a variety of charts that show price action. The most common are bar charts. Each bar will represent one period of time and that period can be anything from one minute to one month to several years. These charts will show distinct price patterns that develop over time.

Candlestick patterns

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Like bar charts patterns, candlestick patterns can be used to forecast the market. Because of their colored bodies, candlesticks provide greater visual detail in their chart patterns than bar charts.

Point & figure patterns

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Point and figure patterns are essentially the same patterns found in bar charts but Xs and Os are used to market changes in price direction. In addition, point and figure charts make no use of time scales to indicate the particular day associated with certain price action.

Advantage of Forex Currency Trading

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Foreign Exchange trading (also called Forex, FX, or currency trading) describes trading in the many currencies of the world. It is the largest and least regulated market providing the greatest liquidity to investors. Daily volume in the currency markets is around $1.6 trillion. By comparison, the NYSE daily volume averages $25 billion a day.

The spot Forex market is the most liquid. Spot, meaning that trades are settled within two banking days. There is no central exchange of physical location. Trading takes place over-the-counter, 24-hours a day directly between the two telephones and computer.

Why Trade Forex

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The future is coming quickly upon us; very soon millions will be on the Internet trading foreign currency. Forex trading is gaining momentum now, as the word goes out that is a SAFE market to trade in.

The major reasons why Forex trading is catching on to the individual trader are Safety, Liquidity,

Trade when you wish, guaranteed stop losses, and its fun.

You do not have to sit in front of your computer all day long to trade the Forex, although once you see the power of Forex trading you might want to. Our teaching methods will show you the correct entry and exit points. All you have to do is glance at the charts occasionally to see if correct entry point is approaching, and if it is then get in on the trade. We will even show you how to leave your computer and have your trade be closed automatically at the level that you wish.

Everything you need to trade in the Forex market will be provided to you. You will be able to participate in the trading seminars, listen and watch experienced traders in our system live to your computer.

The world is getting more complex, but getting smaller at the same time. The Internet has made information accessible to anyone on the planet. We urge you to educate yourself in the techniques of 1st Forex trading academy, as it is already becoming the best way to increase your income from your own computer.

Don’t be the one that says, «Forex, I could have been in that. » It’s time for 1st Forex Trading Academy to teach you how to make money with money. After all, when you boil it down, that is what currency trading really is.

Forex fits into your trading plan than gets started. Don’t be surprised that you can use various trading vehicles in the world of Forex.

Technical analysis –

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What’s popularly called charting – can help traders evaluate both risk and reward. The technical indicators used to read the charts will give you the simplest kind of picture you can get of a currency’s performance.

Simply by placing your support and resistance and by looking at the past performance of a currency you can get a record of its closing price over time. Once all of the elements are in place for an analysis, you can calculate your pips difference and verify, depending on the trend of the market, if you will make more profit or loss and if it is after all worth the position.

For example, if the market is in a bullish situation, you need to have a higher pips difference between your buy-stop order and your resistance price than between your support price and your buy-stop order so that your reward will be maximize and your risk will be minimize.

In each case, upside (bullish) or downside (bearish), the tools of technical analysis will tell you important things about risk and reward. Don’t trade without them.

Risk and Reward

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Traders have no business trading if risk/reward analysis is not at the top of their concerns. If a trader has no idea of the potential profit return on any given trade relative to the initial risk of taking the trade at all, his long-term profitability is in question.

Of course, for every trader, the best case scenario would be to minimize the first and maximize the second. But how do you get a handle on the potential reward in any investment and the risk you might be taking on?

Where to place stops

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We stop out of a trade when we no longer want to hold onto that particular position. The question that arises is: WHY do we want to get out of that trade?

There can be 2 reasons for stopping out of a trade. EITHER the market tells us that our intrinsic

View or Directional Assessments itself was wrong. OR we stop out of a trade (even if we still believe in our basic Bullish or Bearish reading) because we think we can establish another position at a better level than the previous one.

The effort should be to choose a meaningful SL which is neither too close to the entry to get activated soon after entry (only to have the market go back in the original direction thereafter), nor so far away from the entry that we have no time or space left for follow up action.

The difficult part about the paragraph above is that it requires us to have a Trading Plan or Strategy and to choose our Entry much more carefully than we tend to do, in accordance with that plan.

Follow through action required we come back to the reasons for wanting to stop out. In the first case, when our directional reading has been proved wrong, we should look to enter into a trade in the opposite direction - a case of Stop-and-Reverse (SAR). It needs to be pointed out here that it is NOT necessary to SAR at the same instance and level all the time. If you are an intra-week (or longer) trader, you can enter into a reverse trade after stopping out of the original trade, allowing yourself time to reformulate your strategy.

But what of the improbable, the wholly unexpected or the never-seen-before?

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Effective risk management requires thinking the unthinkable. This does not in any way lessen the great value of the many sophisticated risk-management systems available. The problems come if people start to think of them, and the models they are based on, as infallible.

It is also common for the development of control systems to come after any new risk-related products. Be careful not to bet the business until the exposure is known. To be in business you must make decisions involving risk. However sophisticated the tools at your disposal you can never hope to provide for every contingency. But unpleasant surprises should be kept to a minimum.