Blog For Free!
Archives
Home
2008 April
tBlog
My Profile
Send tMail
My tFriends
My Images
Sponsored
Blog
|
| Why ForexGen Can Offer Better Trade Execution |
| 04.17.08 (2:30 am) [edit] |
|
Our size and financial strength means better execution for our clients. Because the Forex market is an over the counter market with no centralised exchange, not everyone receives access to the same prices or quality of execution. The worlds largest banks tend to provide better prices and execution to institutions with the largest trade volume and the most solid financials. ForexGen is one of the most well-capitalised Forex Dealer Members. According to the financial data posted on the CFTC website, as one of the oldest and largest high-volume retail online Forex brokers, ForexGen has built strong execution relationships with many of the world's largest international banks. ForexGen receives and is able to pass on the benefits of size, better prices, and better execution to our clients.
|
|
|
| |
| Advantages of No Dealing Desk Trading Through ForexGen |
| 04.17.08 (2:15 am) [edit] |
|
With No Dealing Desk execution, traders, through the ForexGen Trading Station, have the ability to trade on rates provided by some of the largest banks in the world. These banks compete with each other to provide the best rate, which results in spreads as low as 2 pips. No Dealing Desk execution combines the benefits of trading prices from top-tier banks, with the convenience and speed of ForexGen's award-winning trading platform. You trade when you want—even during market-moving news and economic events. Furthermore, this system enables you to place entry orders at any price—even inside the spread. Unlike other firms, ForexGen offers 24-hour-a-day trade support, giving you the ability to place orders over the phone when the market is open. Our staff of 500+ highly trained specialists are available around the clock to service clients from our regional headquarters in Norway.
In the institutional forex marketplace, currency trading spreads—the difference between the price at which traders can buy and sell—often fluctuate, widening and narrowing depending on market volatility. As the forex market is an over the counter market with no centralised exchange, not everyone receives access to the same prices or quality of execution. The world's largest banks tend to provide better prices and execution to institutions with the largest trade volume and the most solid financials. ForexGen averages $200,000,000,000 ($200 billion) in monthly notional trading volume and is one of the most well-capitalized Forex Dealer Members. According to the financial data posted on the CFTC website, as one of the oldest and largest high-volume retail online forex brokers, ForexGen has built strong execution relationships with many of the world's largest international banks. ForexGen receives and is able to pass on the benefits of size, better prices, and better execution to our clients.
|
|
|
| |
| The Client-service with ForexGen |
| 04.17.08 (2:11 am) [edit] |
|
Client-service is a full-featured system of online management of Clients trading accounts. The system allows to carry out any financial operations with these accounts, including:
• trading account opening and closing;
• depositing funds, withdrawal and transfer of funds from one account to another;
• control of the current status of all Client trading accounts.
The mailing system integrated into Client-service enables to receive and send confirmations about successful conduction of the above-mentioned operations and to receive prompt specialist consultations on any questions about working with the system and other Company services.
To enter the Client-service system, You should register and receive personal access parameters (ID and Password) to the system.
For entrance to the system an ID/Password pair is used, which is sent to Your email address upon registration.
Work with the Client-service system (including registration and entrance to the system) is carried out in the safe Internet-connection mode with 128-bit encoding, which excludes any unauthorized access to the Client's personal information.
|
|
|
| |
| Foreign Exchange with ForexGen |
| 04.17.08 (1:49 am) [edit] |
|
Foreign currency – a volatile market?
Although the foreign currencies you’re currently dealing in may be fairly stable, there’s always a risk of volatility in the market.
One of the reasons that so many individuals and businesses use the expertise of a foreign currency broker is because they know that this is a market that is subject to change – and quick change too. When you have a business to run or a busy personal life to lead, you can't spend your time looking at the foreign exchange markets, wondering what's going to happen next and how you can deal with it. The word "volatility" often suggests trouble; in the context of the foreign currency market, it simply means sudden, if small, changes.
Dealing with foreign exchange volatility
A currency can be subject to change for many reasons. Both internal and external factors can make a difference to the currency's value against foreign currencies, and these factors can change all the time. An economic report on high levels of unemployment released on one day can affect the currency, as can interest rate cuts in another country on another. It's keeping track of all these variables that's the key skill when it comes to dealing with foreign currencies – and it is these variables that can make the currency market seem to be so volatile. Remember that, when you're dealing with large sums of money such as a property purchase, or buying supplies for your business, even a small change in the value of currency can cost you money – so you don't just need to protect yourself from the big swings in currency value, but the small movements too.
Finding the right person to help
The obvious answer to making foreign currency exchange work for you is to find an expert to help. Not only will they have an intimate knowledge of the market and the forces that control it, but they have the experience and the time to look ahead at factors which may affect the currencies you're dealing in and give you the information you need in order to make the most of your money.
ForexGen is a commercial currency brokerage based in Norway. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money by getting a better currency exchange rate than your bank. ForexGen buys currency at wholesale rates and can help you save money with our fast secure service.
|
|
|
| |
| ForexGen helps you to get started in Forex trading |
| 04.17.08 (1:40 am) [edit] |
|
You may have been hearing about the foreign exchange market (FOREX) and the investment advantages it offers. You would like to try it out, but don't know where to start. This short guide will give you the basics in FOREX and tell you what you need to participate in this fast growing field.
Foreign exchange used to be limited to large players such as national banks and multi-national corporations. In the 1980's the rules were revised to allow smaller investors to participate using margin accounts. Margin accounts are the reason why FOREX trading has become so popular. With a 100:1 margin account, you can control $100,000 with a $1,000 investment.
FOREX is not simple, however, and education is needed to make wise investment decisions. Although it is relatively easy to start trading on the FOREX, there are risks involved, so finding out as much as possible about the market is a good move for any beginner.
FOREX traders usually require a broker to handle transactions. Most brokers are reputable and are associated with large financial institutions such as banks. A reputable broker will be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud and abusive trade practices.
Opening a FOREX account is as simple as filling out a form and providing the necessary ID. The form will include a margin agreement that states that the broker can interfere with any trade it deems to be too risky. This is to protect the interests of the broker – most trades, after all, are done using the broker's money. Once your account has been established, you can fund it and begin trading.
ForexGen has different types of accounts to suit the needs of individual investors. Mini accounts allow you to get involved in FOREX trading for as little as $250, while standard accounts may have a minimum deposit of $1000 to $2500. The amount of leverage – using borrowed money – varies with accounts. High leverage gives you more money to trade for a given investment.
HOWEVER – beginner traders are advised get accustomed to FOREX by doing paper trades for a period of time. Paper trades are practice transactions that don't involve real capital. They allow you to see how the system works while learning how to use the various software tools that are at provided by most FOREX brokers.
Online ForexGen broker has demo accounts that allow you to make free paper trades for up to 30 days. Every new FOREX investor is strongly advised to use these demo accounts at least until they are showing consistently steady profits.
|
|
|
| |
| Forex Trading Philosophy with ForexGen |
| 04.17.08 (1:33 am) [edit] |
|
Many beginning FOREX traders are captivated by the allure of easy money. FOREX websites offer 'risk-free' trading, 'high returns' 'low investment' – these claims have a grain of truth in them, but the reality of FOREX is a bit more complex.
There are two common mistakes that many beginner traders make
- trading without a strategy and letting emotions rule their decisions. After opening a FOREX account it may be tempting to dive right in and start trading. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. You buy and watch the market move against you. You panic and sell, only to see the market recover.
This kind of undisciplined approach to FOREX is guaranteed to lose you money. FOREX traders need to have a rational trading strategy and not allow emotions to rule their trading decisions.
To make rational trading decisions the FOREX trader must be well-educated in market movements. He must be able to apply technical studies to charts and plot out entry and exit points. He must take advantage of the various types of orders to minimize his risk and maximize his profit. And ForexGen provides all beginners with its Free Online Academy.
The first step in becoming a successful FOREX trader is to understand the market and the forces behind it. Who trades FOREX and why? Who is successful and why are they successful? This knowledge will allow you to identify successful trading strategies and use them as models for your own.
There are 5 major groups of investors who participate in FOREX – Governments, Banks, Corporations, Investment Funds, and traders. Each group has varying objectives, but the one thing that all the groups (except traders) have in common is external control. Every organization has rules and guidelines for trading currencies and can be held accountable for their trading decisions. Individual traders, on the other hand, are accountable only to themselves.
This means that the trader who lacks rules and guidelines is playing a losing game. Large organizations and educated traders approach the FOREX with strategies, and if you hope to succeed as a FOREX trader you must play by the same rules.
|
|
|
| |
| ForexGen Trading Strategies |
| 04.17.08 (1:16 am) [edit] |
|
To be a successful FOREX trader you need a trading strategy. There is no one set strategy that is good for all traders; rather, each trader needs to develop his or her individual approach to the FOREX. Some traders rely solely on technical analysis while others prefer fundamental analysis,
but many successful FOREX traders use a combination of both to get a broad overview of the market and for plotting entry and exit points.
Technical analysis relies on one key concept: Prices move by trends. The common saying in FOREX is 'The trend is your friend.' Market movements have identifiable patterns that have been studied over many years and a thorough understanding of these trends and how they can be read forms the basis of a good trading strategy.
There are many analytical tools available in ForexGen to understand market movements. The beginner FOREX trader is well advised to study each one separately for getting a working knowledge of their concepts and application. Once one has been understood, keep on using it while studying others. Each tool tends to reinforce the others.
Support and resistance levels are used in many FOREX trading strategies. 'Support' refers to the price level that is repeatedly seen as the bottom – when the price reaches this level it tends to rise. Resistance levels are upper prices that the currency rarely trades beyond. Support and resistance levels contain price movements for a period of time.
When currency prices break through support or resistance levels, the prices are expected to continue in that direction. For example, if the price rises above the previous resistance level, it is seen as bullish – the price should continue to rise.
To find support and resistance levels, price charts need to be analyzed for unbroken support and resistance levels. Charts can be analyzed in any time frame; however longer time frames establish more important support/resistance levels. Traders can use support/resistance levels to determine when to enter or exit a transaction.
Moving averages are another common tool in FOREX strategies. The simple moving average (SMA) shows the average price in a given period of time over a specified period of time. Moving averages serve to eliminate short term price fluctuations giving a clearer picture of price movements. FOREX traders can plot a SMA to determine when prices have a tendency to rise or fall. If prices cross above the SMA they have a tendency to keep on rising. Conversely, prices below the SMA have a tendency to continue their downward motion.
These are two examples of trading strategies that can be used individually or in combination. In practice, the FOREX trader should have a repertoire of trading tools to examine market conditions and to support the findings of one study or another. If several indicators show that the market is moving in a particular direction the trader can act with more assurance than when relying on a single indicator.
Similarly, fundamental analysis can be used to reinforce technical findings, or vice versa. Ideally, the FOREX trader will take several indicators into account when plotting a trading strategy.
Every trading strategy should provide clear guidelines about when to enter a trade, what to expect in terms of market movement, when to exit a trade, and how much loss can be accepted in case the deal moves against the trader. Following these simple guidelines and learning about technical analysis can help you become a successful FOREX trader.
One of the best online FOREX trading strategy courses is offered by professional experts in ForexGen. They are an authority in currency trading education and demonstrates simple yet powerful currency trading strategies used by banks, financial institutions and professional Forex traders.
|
|
|
| |
| ForexGen Trading Tools |
| 04.17.08 (1:03 am) [edit] |
|
There are many ForexGen trading tools available to the FOREX trader for analyzing the market as well as for buying and selling currencies. Software tools are a necessary part of FOREX because of its volume and volatility. Software can be used to automate some of the trading procedures and safeguard against losses.
In order to make rational, successful trades, the FOREX trader needs information – lots of information. Current exchange rates are the tip of the iceberg – the trader needs historical data as well as current information about political and economic conditions that could affect currency prices. All this information is provided by ForexGen broker on its web sites. So it's important before deciding about a broker to try out a demo account at ForexGen's broker to see which tools are included as part of its trading system.
More FOREX tools are available to help you minimize your risk and maximize your profits.
The Risk Probability Calculator (RPC) can be used to identify trades that have more potential gain than potential loss. The RPC can also help you target exit points to end the trade.
Pivot Points can be used to predict movements of currency prices. They are calculated as an average of the currencies high, low and closing prices. Pivot Point Calculators tell you whether prices fall in the normal trading range or extreme trading ranges. One of the best online courses about pivot point trading is offered by professional traders in ForexGen. They are an authority in currency trading education and demonstrates simple yet powerful currency trading strategies used by banks, financial institutions and professional Forex traders.
Pip value calculators are used to tell you the value of each pip (smallest currency unit) according to various sized lots. Pip calculators can tell you the actual profit or loss that will result from movements in the FOREX.
|
|
|
| |
| ForexGen LLC History |
| 04.16.08 (5:03 am) [edit] |
|
ForexGen LLC 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 LLC 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 LLXserves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.
Throughout our partnership with the industrial leaders, we are capable of delivering incomparable quality of online currency trading service.
The ForexGen LLC services are all controlled by the international banking and financial regulatory standards. ForexGen LLC is continuously providing the Forex market’s safest trading terms & conditions. Providing professional currency trading services that meet our client’s expectations is our first priority.
ForexGen principals:
ForexGen LLC customer satisfaction is our major objective. To reach our business goals, we strive to put our client’s goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.
The ForexGen’s provided services are all restricted and regulated by the international banking and financial regulatory standards. All our provided activities are supported by creativeness and modernization. Ambitious & motivated employees are working simultaneously to protect the customer’s confidentiality. ForexGen LLC is continuously providing the market’s most competitive conditions.
ForexGen LLC complies with the trade commissions in the USA, EU and Australia. Being registered by the commercial authorities in 18+ countries, we adhere to the United Nations Commission on International Trade Law (UNCITRAL).
Profile regulatory information
ForexGen LLC is complying with all applicable international laws and all financial regulations and procedures governing its industry in order to sustain the security standards in the financial services world.
According to the Federal Trading Commission (FTC) and Commodity Futures Trading Commission, all financial institutions are obligated in conformity with the anti money laundering laws (AML) that control money laundering and maintain the integrity and security of the international banking and financial institutions. ForexGen is regulated by the international authorities against money laundering and in full compliance with the International Laws.
This is the reason why our customers have to provide us with identifying documentation and the documents proofing the origin of their funds in order to secure that the funds that ForexGen LLC will receive are fully and legally originated according to the European Trading Commission and the European Anti-Fraud Office.
As the international banking standards imply, we preserve all the customer’s account information both personal and financial. Our target is to achieve our principal goal, which is gaining the customer’s confidence and reach to the maximum satisfaction level.
ForexGen LLC state-of-the-art encryption and confirmation rules and certification ensure that every trader’s contract is verified and secured.
|
|
|
| |
| Trading with ForexGen |
| 04.16.08 (4:58 am) [edit] |
|
ForexGen presents specialized Forex online trading services. We support trading in variable currency pairs, available services 24 hours a day most of the week. Real time prices are supplied to facilitate the trading and make it more quick and efficient. Our trading terms & conditions are the most competitive trading terms & conditions for various trading kinds which represent our appreciation to every client starting from the smallest customers. ForexGen is re-setting professional trading technology, by a continuously tracing the competence offers and modifying our trading conditions and provided platforms.
• ForexGen LLC is providing an Executable Quotes which appears directly once the trader click the current bid or offer in the Forex trading platform. The orders aren't checked manually to prevent undesired price quoting. The bid/ask spreads (2 to 3 pips in the major currency pairs) are most of the time stable, and never freeze the prices in any situation.
• ForexGen LLC is permitting the immediate orders implementation with complete Confirmations and real time margin checking. In addition, automated fills are provided for all market orders.
• At ForexGen LLC filling the orders is instantly and accurate without difference between the quoted price and the execution price. In addition, Provided Stops and limits have no slippage. Generally we assure and guarantee that under all situations except the most unexpected volatile condition.
• The bid and ask prices usually modified, to buy the client's ideal support in taking the buy or sell decision. In addition to posting our bids and offers frequently at any market condition, giving you a fair chance to trade during important news events. Other TSPs don't allow you to trade on big market making news -they freeze their prices or widen their spreads when the market is volatile. At Forex Gen, we never freeze our prices.
• ForexGen LLC Advanced trading tools are at the client's reach, providing modified up to minute news, supports reporting each day & each week plus alerts of the real time trade.
• TRADING LIMITATIONS.
ForexGen LLC at any time, in its sole discretion, may limit the number of positions which Customer may maintain or acquire through ForexGen LLC, and is under no obligation to effect any transaction for Customer’s accounts which would create positions in excess of the limit which ForexGen LLC has set. Customer agrees not to exceed the position limits established for any contract market, whether acting alone or with others, and to promptly advise ForexGen LLC if Customer is required to file any reports on positions.
ForexGen LLC preserves the right to cancel any transactions found to be erroneous because of the market volatility, failure in the software or hardware of the trading platform or the connected parties. This cancellation is done without consulting with the Customer. The Customer hereby agrees on accepting the consequences of such cancellation either on, or against his favor.
ForexGen LLC Preserves the right to ban any Customer from its trading platform, suspend any accounts temporarily or permanent at any circumstances where the account was suspected to perform one or more of the following forbidden activities:
- Illegal pip hunting.
- Illegal scalping.
- Multi IP login at the same time.
- Suspicious hedging of the same currency.
- Harmful strategies.
- Expert Advisor that are not approved by ForexGen.
- Security threatening activities.
- Any other hostile activities that threatens ForexGen, its customers, business partners and counter parties.
ForexGen LLC risk management office has the right to estimate the risk scope and calculate the remaining funds to be paid out to the Customer after suspension. ForexGen has the sole right to cover its losses caused by the over mentioned activities prior to the suspension.
|
|
|
| |
| Money Manager with ForexGen |
| 04.16.08 (4:52 am) [edit] |
|
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.
Individualized services:
ForexGen Money Manager’s services provide an extremely competitive program for managing client’s funds in order to introduce new clients to the Forex Market without having them to trade. The Money Manager will be gaining commissions from two fixed sources and a variable one based on the amount of deposits you are managing in your money manager account. Money Manager's client's account can be activated with the agreement of their clients. Moreover, they will be enjoying the benefits of being a ForexGen family member:
• Up-To-Date RSS news feed.
• Lowest spreads in the Forex Market.
• Tremendous amount of Technical Indicator.
• Fast order execution.
|
|
|
| |
| White Label with ForexGen |
| 04.16.08 (4:49 am) [edit] |
|
Forex White Label partnership allows the trader a quick access to the online foreign currency exchange market.
ForexGen provides two types of trading White Label partnerships, a limited and a full solution. ForexGen different types of forex White Label partners are able to access ForexGen's trading platform entirely branded under each partner's unique company image and name. We provide a customizable online trading platform for the different types of the two White Label solutions.
Full White Label
We provide 'full White Label partnership' to match the needs of the regulated companies and organizations that have a legal authorization to hold clients' funds. Our online trading platform is the most qualified online trading software in addition to an experience based infrastructure, but the full White Label partner is responsible for all administrative work and of all contact with their clients, i.e. opening of accounts.
Limited White Label
Limited White Label partners are also offered to access our customized online trading platform but their customers have to open a direct forex trading account with ForexGen Investments. Consequently, limited White Label partners could be not regulated by a financial authority as they will not hold customers' funds. This service permits the customer to manage his trading actions freely without vast administrative paperwork.
WHAT are the advantages of being a WHITE LABEL PARTNER with ForexGen?
A Qualified and familiar online trading platform branded under each company name!
• Streamline dealing with no request for quote for up to 200 lots (20 million).
• Our online trading platform offers trading of 25 currency pairs also Gold and Silver with the 'one clicks trading' mechanism.
• Constantly updated real time prices.
• Real time charts with the most common indicators.
• Daily account statement.
• Recent technical analysis by Capital Management is provided each day to the mailbox in the ForexGen online Trading Platform.
• Streaming news quotes provided by AFX News.
• An attractive income sharing plan
Trading White Label enables our partners to charge their clients' commission for each traded lot.
They also have the ability to raise the spread for all or certain customers.
ForexGen offers a minor predetermined percentage for every closed lot traded by their customer in case that White Label partner does not raise the spread or charge their customers a commission.
Commission is paid out every month.
Individualized service
ForexGen white label trading offers our partner's individualized service created according to the individual needs and specified business situation for each IB.
White labeling enables you to access one of the two highly advanced ForexGen online Trading platforms according to the customer designation. This reduces your responsibility to provide a platform support and accounting personnel that is regularly required.
White Label trading service enables your customers to benefit from ForexGen advantages which revolutionize the retail foreign exchange industry.
• A qualified online trading platform that offers sophisticated forex charts, a large scale of indicators and trading mechanism , hedging feature, trailing stops that adjust pip by pip, real time streaming quotes and more!
• ForexGen trading services are provided without Dealing Desk which prevents the effect of any one on the prices and pip spreads
• Low spreads - 2 pip EUR/USD, 2 pips USD/JPY and 3 pips GBP/USD, USD/CHF, and EUR/JPY.
• ForexGen leverage could be 200:1 on standard accounts.
|
|
|
| |
| Introducing Broker with ForexGen |
| 04.16.08 (4:45 am) [edit] |
|
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.
• Instant order execution.
• No dealing desk.
• Low spreads.
• Free qualified forex charting .
• Real time streaming news.
ForexGen main focus is on our client's profitability and satisfaction which increase their online forex trading life time. At ForexGen the trader has the ability to spend most of the time controlling and performing their business rather than troubleshooting.
The most competitive trading conditions:
• 2 pips spread on six currency pairs.
• Leverage of 200:1 leverage for accounts.
• Without maintenance margin, our services offer margin call and automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US.
• The minimum account size with a 250 US has the ability to execute a lot of trading lots.
Qualified and familiar multilingual platform!
• Streamline dealing with no request for quote for up to 20 million.
• The ForexGen online Trading platform offers traders to do currency trading in pairs. We also allow trading Gold and Silver with the 'one click trading' mechanism.
|
|
|
| |
| Forex Signals with ForexGen |
| 04.16.08 (4:40 am) [edit] |
|
The first thing necessary for a successful trade on Forex market is making up-to-date decisions, which, of course, is almost impossible without the fresh authentic information available for the trader. The most useful way of retrieving it is ForexGen signal services, responsible for timely informing its subscribers on every important Forex market events, along with providing tips on current trade.
Such brief notifications on latest Forex market events are called signals. A signal usually carries a short text (of one or two lines), giving a maximally informative instruction on current condition of certain market elements. Often the signal’s body also contains a tip giving the trader an advice on what actions shall he carry on.
You can learn about proper use of signals in bounds of training and education programs for Forex market professionals. The problem is, Internet allows many different signal services (including free services, which, as one could expect, are often far unauthentic or provide out-of-dated information). A trader has to be able to understand signal systems good to select a trustworthy one, which, at the same time, will not involve too high subscribe payment.
Signals may be retrieved by the respondent in many different ways: via a notification placed directly onto the special signal service provider website, via mass email delivery, via the notification delivered as an SMS message on subscriber’s mobile phone, or with the help of a special client software, displaying the notification right on Windows/Linux desktop of his PC workstation. Some of the signal systems also have the possibility of working in straight cooperation with automated trading systems of Forex market, allowing the trader besides of making the decision on time, to bring it to life right away.
|
|
|
| |
| Different Types of Forex Orders with ForexGen |
| 04.16.08 (4:36 am) [edit] |
|
A trader has at his disposal different types of orders to make FOREX trades. A clear understanding of each type of order is necessary to be a successful FOREX trader.
Market Order – is an order to buy or sell at the current market price. They can be used to enter or exit a trade.
Market orders should be used with care because in fast-moving markets there may be a difference between the price seen at the time a market order is given and the actual price of the transaction. This is due to slippage – the amount the market moves in the few seconds between giving an order and having it executed. Slippage could result in a loss or gain of several pips.
Limit Order – is an order to buy or sell at a certain limit. They can be used to buy currency below the market price or sell currency above the market price. When buying, your order is executed when the market falls to your limit order price. When selling, your order is executed when the market rises to your limit order price. There is no slippage with limit orders.
Stop Order – is an order to buy above the market or to sell below the market. They are most commonly used as stop-loss orders to limit losses if the market moves contrary to what the trader expected. A stop-loss order will sell the currency if the market falls below the point set by the trader.
One Cancels the Other (OCO) – this order is used when placing a limit order and a stop-loss order at the same time. If either order is executed the other is cancelled, allowing the trader to make a transaction without monitoring the market. If the market falls, the stop-loss order will be executed, but if the market rises to the level of the limit order, the currency will be sold at a profit.
• Example OCO Transaction:
Buy: 1 standard lot EUR/USD @ 1.3228 = $132,280
Pip Value: 1 pip = $10
Stop-Loss: 1.3203
Limit: 1.3328
This is an order to buy US dollars at 1.3328 and to sell them if they fall to 1.3203 (resulting in a loss of 25 pips or $250) or to sell them if they rise to 1.3328 (resulting in a profit of 100 pips or $1,000).
• Here's another example:
The current bid/ask price for US dollars and Canadian dollars is
USD/CDN 1.2152/57
...meaning you can buy $1 US for 1.2152 CDN or sell 1.2157 CDN for $1 US.
If you think that the US dollar (USD) is undervalued against the Canadian dollar (CDN) you would buy USD (simultaneously selling CDN) and wait for the US dollar to rise.
This is the transaction: Buy USD: 1 standard lot USD/CDN @ 1.2157 = $121,570 CDN
Pip Value: 1 pip = $10
Stop-Loss: 1.2147
Margin: $1,000 (1%)
You are buying US$100,000 and selling CDN$121,570. Your stop loss order will be executed if the dollar falls below 1.2147, in which case you will lose $100.
However, USD/CDN rises to 1.2192/87. You can now sell $1 US for 1.2192 CDN or sell 1.2187 CDN for $1 US.
Because you entered the transaction by buying US dollars (buying long), you must now sell US dollars and buy back CDN dollars to realize your profit.
You sell US$100,000 at the current USD/CDN rate of 1.2192, and receive 121,920 CDN for which you originally paid CDN$121,570. Your profit is $350 Canadian dollars or US$287.19 (350 divided by the current exchange rate of 1.2187).
|
|
|
| |
| Forex Trade Sizes with ForexGen |
| 04.16.08 (4:33 am) [edit] |
|
FOREX currencies are traded in much smaller divisions than cash. Whereas the smallest division in US cash is the penny ($0.01), US currency can be traded on the FOREX in divisions of $0.0001. This smallest division is called the pip (short for Price Interest Point – sometimes just called 'points').
Since currencies are traded in large lots of (say) $100,000 - small movements in value can generate substantial profits and losses. In a lot of US$100,000 one pip is worth $10 so an increase in 40 pips (4/10 of one cent) can generate a profit or loss of $400.
Currencies are traded in lots of various sizes. The standard lot is 100,000 units of the base currency. A unit is the currency name e.g. one unit of US dollars is the dollar. So a standard lot of US currency is worth $100,000. FOREX trades can have lots of various sizes - a mini lot is 10,000 units, but the most trades are done using standard lots.
Various currencies have different sized pips. The US dollar is expressed in pips of 0.0001 while the Japanese yen is expressed in pips of 0.01. The value of a pip depends on the size of a lot and the currency pair traded. Currency pairs with USD as the quote (second) currency (e.g. CAD/USD) always have a pip value of $10 per standard lot or $1 per mini lot. A pip value calculator can be used to calculate other currencies.
|
|
|
| |
| Trading on Margin with ForexGen |
| 04.16.08 (4:30 am) [edit] |
|
The key to FOREX popularity is margin. Without margin, the FOREX would be beyond the reach of the average investor. So, what exactly is margin and how does it work?
Margin accounts allow FOREX traders to control large amounts of currency with a relatively small deposit.
Establishing a margin account with a FOREX broker enables you to borrow money from the broker to control currency lots which are usually worth $100,000. The amount of borrowing power your margin account gives you is the leverage. Leverage is usually expressed as a ratio – a leverage of 100:1 means you can control assets worth 100 times your deposit.
What this means in FOREX is that with a 1% margin account you can control standard lots of $100,000 with a $1,000 deposit. Trading on margin increases both profits and losses, and the potential exists for the trader to lose more than his original deposit. With proper safeguards, however, loss can be limited, and usually brokers will terminate a transaction that extends beyond the margin deposit.
Benefits
As we mentioned above, trading on margin gives you more buying power and the potential for more profits (and losses). How does this work, exactly? A 1% margin account allows you to control a currency lot of $100,000 for $1,000. When dealing with $100,000 small changes in the price of the currency can result in large profits or losses.
FOREX currencies are traded in much smaller units than cash. The American dollar, for example, is traded in units down to 4 decimal places. Instead of $1.32 FOREX quotes are seen as $1.3256. The smallest unit in FOREX currencies is called the pip, and when you have a $100,000 each pip of your total lot is worth $10 (when trading American dollars).
If the price of American dollars changes from 1.3256 to 1.3356, that's a difference of 100 pips which represents a profit or loss of $1000. Without margin, if you had $1000 of currency, the price change from 1.3256 to 1.3356 represents a difference of $10. Significant to the tourist, perhaps, but not the investor.
So the benefit of margin is increased profit potential.
Risks
As there is increased profit potential, there is also increased loss potential. If you are not careful, your entire margin account could quickly be wiped out. If your margin account is 1% and the currency moves just one cent against you, you lose $1000.
FOREX trading, however, has several methods to limit loss. Stop loss orders automatically close your position if the value of the currency crosses a pre-determined point. Stop loss orders allow you to limit your losses to a specified amount while still allowing potential profit taking.
An often overlooked risk is the possibility that your broker may close your position if your potential losses approach the balance of your margin account. You may be riding out a down trend with the expectations of a market reversal, but unless you replenish your margin account you may find your position has been closed. If this happens, you lose all of your margin.
For example:
You sell EUR/USD at 1.2144 (sell 100,000 euros and buy 121,440 US dollars) with the expectation that the euro will fall in price. You have a 1% margin account which means the required margin is $1,214.40. You have $1250 in your margin account, so to enter this position your margin account is left with $35.60.
You have not specified a stop loss order, and after you enter this position the euro suddenly rallies, gaining 0.0263 for a price of 1.2407. 100,000 euros are now worth US$124,070 and your 1% margin requirements have risen to $1,240.70. Depending on the policy of your broker, your position may be automatically closed or the extra funds in your margin account may be used to make up the difference. In any case, if the euro continues to gain value and you wish to ride it out (bad idea) you will have to add more funds to your margin account or risk losing everything.
Another example:
You buy USD/CHF at 1.2623 with the expectation that the US dollar will gain against the Swiss franc. You buy a standard lot of 100,000 American dollars for 126,230 Swiss francs with a margin requirement of 1% or $1,000.
As expected, the US dollar rises to 1.2683 at which point you close your position. You sell 100,000 American dollars for 126,830 Swiss francs for a profit of 600 francs or US$473.08 (600 francs divided by the exchange rate of 1.2683).
|
|
|
| |
| Lowest Spread with ForexGen |
| 04.16.08 (4:27 am) [edit] |
|
If we take no commissions or fees, then how are we compensated for our brokerage services, might you ask? The answer is: the spread. As you may have noticed, a currency pair quote comes with two displayed rates for instance, GBP/USD 2.025/2.028. Those refer respectively to the bid price (the rate at which you may short sell the pair) and the ask price (the rate at which you may buy the pair). The spread is the difference between those two rates. The tighter the spread, the more advantageous it is for you. ForexGen offers spreads as low as 1 pip on the main currency pairs. ForexGen is able to offer such tight spreads thanks to the huge capital traded by its clients each day and the excellent inter-bank conditions thus negotiated.
|
|
|
| |
| 24hrOnline Forex Trading With ForexGen |
| 04.16.08 (4:24 am) [edit] |
|
With a volume of $3 trillion traded each day, the foreign exchange market is the largest financial market in the world. While Forex trading was once the exclusive domain of banks and large financial institutions, the rise of Internet technology has made it accessible to all types of investors including individuals with small investment capital. As word of its substantial and quick potential profits is spreading, online forex trading is becoming more popular each day.
Through online currency brokers such as ForexGen, traders can now buy and sell currencies in one mouse click and with no commissions or fees. Online forex trading allows you to take advantage of market fluctuations – even small – in various currency rates. At ForexGen, you get free access to topnotch tools which will help you predict market direction and place your orders.
|
|
|
| |
| Benefits of Forex Trading with ForexGen |
| 04.16.08 (4:20 am) [edit] |
|
Forex offers great investment opportunities for those wishing to diversify their portfolio. Forex benefits and advantages are many. Here are some of the main reasons why more and more corporate and individual investors choose to trade forex:
• No Commissions, Small Transaction Costs: This is probably one of the most attractive forex benefits. Indeed, when you trade forex, you are not charged any fees or commissions on your deals. The way it works is that brokerage firms get paid through spreads (the difference between the bid and the ask price). This allows for extremely low transaction costs. Thanks to its large number of clients and to the large volume and capital traded through the platform, ForexGen offers very competitive spreads on the main currency pairs.
• Leverage Trading: High Returns with Relatively Small Deposits. this means that even if traders deposit a small amount of money, they can actually trade with a much bigger contract value. ForexGen offers a 200 to 1 leverage. If you make a $100 margin deposit, you can actually trade $20,000 worth of currencies. With a $1,000 margin deposit, you can buy or sell $200,000 worth of currencies. However, you must keep in mind that if leverage allows for substantial profits, it also can lead to equally significant loss. One of the chief forex benefits can thus become a major liability. That's why you need to figure out your own risk management policy before you start trading.
• High Liquidity: This refers to the forex market's ability to quickly convert or liquidate deals through buying or selling and without causing a significant price movement. The high liquidity of the forex market is mainly due to the large volume of currencies traded around the world. That way, currencies are exchanged instantaneously, 24 hours a day and with minimum loss value, since the next trade is usually executed at the same price as the last one. In the forex market, there are always plenty of ready and willing buyers and sellers.
• Open 24 hours a day: The forex market is open 'round the clock, 5 days a week, from Sunday 5 pm EST to Friday afternoon 4 pm EST. This is due to the fact that there is an overlap of different time zones and that there is no physical central exchange that opens and closes at a particular time. Forex works through a global electronic network of corporations, banks and individuals. When you hear that a certain rate closed at particular price, this refers to the price at market close in London or elsewhere. However, unlike securities, currencies are still traded somewhere else in the world. The global scope of currency trading, as well as the high demand for currency, implies that there are always investors somewhere who are willing to buy or sell currencies. This also allows traders to trade on a part-time basis, meaning that they can choose to trade whenever they want.
|
|
|
| |
| Why Trade Forex with ForexGen |
| 04.16.08 (4:16 am) [edit] |
|
As you probably know, choosing an online broker is the first challenge you are faced with when considering trading forex online. Well, you've come to the right place! With ForexGen, you can rest assured; you are in the best of hands! There are many reasons why trade forex with ForexGen. One of them is that we are always ahead of the competition by constantly adding new products and upgrading our online trading platform for better performance and ease of use. Very few forex brokers offer the level of reliability and professionalism that characterize ForexGen. In fact, no other forex broker will attend to you like we do. It is important for us that you feel comfortable trading forex and other financial products on our system and that you feel you can trust us: that's why our business practices are based on values such as excellence, reliability and proficiency. Those ForexGen Values are at the core of our company's identity.
When you start trading with ForexGen, you won't want to trade anywhere else. And this is because we offer products and service of the highest quality in a secure and user-friendly environment.
|
|
|
| |
| Education Program with ForexGen |
| 04.16.08 (4:14 am) [edit] |
|
ForexGen, in cooperation with E-market online, a leading online forex learning center, presents a series of online forex courses designed to guide beginners through the competitive world of Forex trading. This comprehensive, step-by-step approach to foreign exchange provides students with in-depth information, proper training, and useful resources - all the tools necessary for profitable trading.
With ForexGen, forex learning comes together with practicing: as students learn more about forex, they will be invited to put their knowledge into practice and put their skills to the test – all with no risk of course. Indeed, there is no better way to enter the forex market than through the ForexGen Demo Platform. As you absorb the information you will have learned, we will teach you how to trade and how to invest smartly on the FX market, in real market conditions. From the basics of forex to advanced trade orders and trading strategies, our learning programs will teach you the skills that make a good trader.
Main topics addressed in our forex courses
• Forex market introduction: Learn the particularities of the foreign exchange market and how forex fits in the greater world of finance.
• Trading strategies and tools: See how you can combine different trades and what trading tools you may use.
• Types of deals: Find out about various forex market orders.
• Fundamental and Technical Analysis: Interpreting graphs and economic data to make market predictions.
• The Fibonacci correction: One of traders’ favorite technical indicators for identifying and predicting market trends.
• Guide to online trading: How to start trading over the Internet.
• Trading psychology: Adrenaline, impulses, and trading profiles – what kind of trader are you?
• Money and Risk Management methods: One of the main aspects of speculation consists in increasing your chances for profit while reducing your chances for loss. Find out how.
• What makes a champion trader: The do’s and don’ts of online trading.
Why such an education is important?
The main appeal of forex trading is that it can become a very lucrative source of profit. There is, however, a downside: it can also lead to substantial losses. Unfortunately, traders who rush into deals without a solid training – and they are numerous – are bound to burn. So why learn the hard way? With ForexGen's online forex courses, you acquire all the skills that make a successful trader. Forex learning was never so easy!
|
|
|
| |
| ForexGen New Announcements |
| 04.16.08 (4:11 am) [edit] |
|
"Liquidity providers' world wide chooses ForexGen!
A reliable source announced that many Liquidity Providers World Wide chooses ForexGen for its potential growing business, reliability and security, which also has been confirmed by many traders dealing with ForexGen.
ForexGen's representative declared that ForexGen ultimate goal extend behind investments reaching to winning its traders' confidence and trustworthy
Throughout the last 4 years ForexGen has succeeded in building bridges of trust among traders maintaining high profile and rank among other competitors in the economic world.
"ForexGen to go east: ForexGen has announced that China and the Far East is on its top priority"
ForexGen has proved to be one of the market leaders in today's world by having group of professional experts in the field of investments and economy
A source campus has announced that China and the Far East are on the top of ForexGen priority.
And to go on success, ForexGen claims that they are looking more forward to run their investments in Far East as well gaining more confidence of other countries.
"Gold traders are the winners on ForexGen Hall of Fame list"`
In the last 4 years ForexGen raised as a new market power in Forex market and among major market investors
Recently some announcements have been made stating that Gold traders are the winners on ForexGen Hall of Fame list
ForexGen representative stated that "ForexGen deal with variable trading options attracting people interest"
"Bank of Canada approves liquidity provider agreement to the favor of ForexGen"
Bank of Canada approves liquidity provider agreement to the favor of ForexGen" provided by a reliable source.
Adding that:
"This is actually a long step towards success, moreover this will ensure security of trading with ForexGen, and eventually increasing targeted customers actually"
By these liquidity providers' joining ForexGen continues the speaker:
"ForexGen liquidity will be increased and consequently their trading opportunities will be widening to hold more trades. Therefore, ForexGen assures all clients that there will be more chances for trading opportunities"
|
|
|
| |
| Win at Forex Trading with ForexGen |
| 04.16.08 (4:07 am) [edit] |
|
There is one problem that most forex traders fail to come to terms with and lose and its operating in an unstructured environment – this is the major underlying reason traders lose, so lets it explain it and its significance in more detail.
In normal society we confirm to rules and laws they govern our lives and those of our fellow citizens, were used to them and we conform to them.
When a forex trader trades, he has to operate in an unstructured environment and create his own rules to live and survive by.
This sounds easy enough to achieve, however nothing could be further from the truth – it’s very hard and most traders simply can’t achieve it.
Let’s take a closer look at the problems associated with operating in an unstructured environment.
1. Taking Responsibility For Your Actions.
This means taking charge of your destiny and most people simply cannot accept this responsibility.
They want the comfort of having someone to hold their hand and blame if thinks go wrong.
Problem is if you don’t accept responsibility, you won’t win - no one else will make you rich in Forex trading, you’re all on your own.
2. You Have To Create a Set of Rules to Survive
The market which you confront is all powerful, it moves as and when it wants – it’s always right and you can only be wrong .
Again, this causes major psychological problems for traders – we all hate being wrong, but in this instance you have to accept the market is right ALL the time, if you don’t you will run loses and the market will destroy you.
Most traders get frustrated and break their rules, or create a new set as they lose and end up chasing their tail. If you create rules you must have the discipline to apply them and most traders simply lack the mindset to do this.
3. The Work Ethic Does Not Apply
Most people try and overcome losses with a higher work rate.
After all the more you put in the more you get out. They assume if they acquire more knowledge or trade more often, their profitability will increase but the markets won’t reward effort.
You get your reward for being RIGHT and that’s it in forex trading, not the effort you put in.
4. Forex Traders Need To Be Anti Social!
We don’t mean you have to be rude to anyone - but you need to keep yourself to yourself and stay away from the pack and its opinions when trading forex.
Remember 95% of forex traders lose!
We find this uncomfortable.
After all, were pack animals and since stone age times we have sought comfort and belonging with others of our species. When we go against the majority opinion, we feel uncomfortable, as were simply not used to it.
Operating in the forex markets is far harder than many people think and most traders are simply unprepared for the mental problems that it confronts them with.
You will hear often that it is mindset more than method that contributes to success in the markets and its true.
If you have ever wondered why traders find it so hard to trade with discipline, this article may have helped you see why and given you an insight into what you need to do to achieve currency trading success.
|
|
|
| |
| Excellent Strategy with ForexGen |
| 04.16.08 (4:01 am) [edit] |
|
Said to be one of the largest exchange market the Forex market is also gaining popularity. The possibility of earning large profits adds to the traders appeal. Although trading in this market is not easy, it can be, provided one understands the Forex trading system. Even a planned investment can many times take a wrong turn. The investor has a bad day even after planning his actions. Nevertheless, this is of little concern to the Forex trader. Every trader in the Forex market knows that to keep the losses at a minimum the trader will have to use the trading signals and this can be done only and when the trader uses the Forex trading system. In this way, he will learn to survive the volatile investment market and brave investing again. The Forex trade allows the traders to conduct their trade in a rather emotionless manner. This is because the pre-determined guidelines that form the system make it an easy task.
Executing his actions is now easy as there are fixed price levels of initial stop loss and trailing loss. Apart form this there already exists a computed price profit, which is projected in the trader’s interests. This in built system of computation allows the trader to know what his level of loss or profit is and even the risk to reward ratio before he even begins to trade for the day. Using the trading system the trader plans his trades and makes a profit if he trades correctly. But on the other hand if the trader makes a wrong move and is more likely to make a loss than a profit then the Forex trading system will show the trader that he is making a wrong move. In this way the trader is able to move out of the situation quickly and the huge losses he would have otherwise incurred is no more a worry. Trading in this way is very safe and the trader is warned when he makes a wrong move. The Forex trading comes under the day trading, meaning the investors buy and sell their securities or they open and close their markets on the very same day. There are many traders who believe that the day trading system is not worthwhile and does not give it much importance.
When you want to check the Forex trading system as an option, what you can do is review this trading system by finding out how other Forex traders like it. You can easily ask the existing Forex traders their trading experience and how they like it via the trading system. Trading forums are another way of receiving reviews about the Forex trading system. As there are a number of forums, you will have no difficulty in getting the information you require. However many professionals feel that day trading is quite profitable though it is not the easiest way to trade. If this wasn’t a profitable method of investing then how does one explain the large number of day traders who earn their income solely from this source? Therefore, if you wish to be part of any system that relates to day trading then it is necessary that you have sufficient knowledge about the Forex trading systems. Many sites let you in on the secrets of Forex trading. These sites provide you with Forex Strategies, Forex techniques and all other information that you may be in need of.
A number of tools, information and techniques are made available so that the Forex trading is made easy. Additionally these sites provide the facility of online Forex trading. There are sites that provide free online trading. This is extremely helpful for day trading as the trader can be up-to-date with the changes in the market. No matter whether you are interested in day trade or swing trade as long as you have a good trading system in place. These systems should help you conduct your trade in a safe manner and ease your trade. In this way, you can make the most of your investments and have the chance to increase your profits and reduce the losses. Knowledge of the Forex Trading System will help you even in your other day trading endeavors.
We are a team of experienced writers, editors, SEO experts and quality control personnel who work in close association to produce quality, keyword-rich content. We have worked on web content, press releases, ebooks, blogs, travel guides as well as articles on a myriad of topics. Our endeavor is to provide you long term support in your content development efforts. CNS Zone...We Build on Words!
|
|
|
| |
| Forex Trend Following with ForexGen |
| 04.16.08 (3:26 am) [edit] |
|
The most lucrative form of trading is locking into and following long term trends in forex that can last for months or years. Most traders have no idea how to profit from forex trend following so we will show you how to do it in 5 simple steps.
1. Be Selective
The first point to keep in mind is that the big trades don’t come around very often so you need to be patient and selective. You don’t get rewarded for trading frequently; you get rewarded for being right.
You can trade less than a dozen times a year and make triple digit gains, if you pick the right trades. So don’t be tempted to get in the market for the sake of it be patient.
2. Watch Breakouts
Forget buying low and selling high – most great trends start from new market highs and you have to be ready to buy these breaks.
If you wait for a pullback you will simply miss the best trends, because when a new trend breaks out - it moves quickly.
The best risk/ reward is offered on the these breaks. Most traders can’t buy breakouts, as they want to buy at a lower better price and wait for a pullback and they never get in and miss the trade.
3. Use a Simple System
To trend follow and catch breakouts you don’t need a complicated system.
All you need to understand are basic trend lines and the concept of support and resistance and that’s it.
A simple forex trading system is best, as it’s easy to understand and easy to apply – if you complicate your system, it will be less robust and will have too many elements which will break in trading.
All the best forex trading systems are simple and yours should be to.
4. Trade Valid Support and resistance only
Keep in mind, you only want to trade breaks that are considered important by the market.
This means that levels have been tested several times, in at least two time frames, preferably a few months.
When these levels are broken, chances are there are stops behind the level wating to be hit and new trend followers waiting to kick in which will accelerate the price trend.
5. Confirm – Confirm – Confirm!
Make sure that any breakout is confirmed by momentum oscillators – this will ensure you filter out false breakouts.
If you are not trading with price momentum, you’re not trading the odds and you won’t win – period.
Only take breakouts confirmed by a rise in price momentum.
We don’t have time to discuss the indicators to use here - but look up: RSI, ADX and the stochastic, as a good place to start.
6. Accept Short Term volatility
Breakout trading can see huge volatility after the initial breakout has occurred, don’t be tempted to move your stop to quickly WAIT.
You’re trying to catch the big trends so accept that you will see counter moves eat into your profits by several thousand a day.
If you want to catch the big trends and make $10, $20, $30,000 or more - accept the drawdowns in the short term and keep your eyes on the bigger prize if you dont you will be stopped out early and miss the big profit you were aiming at.
So there you have it.
A simple, logical system, that can and will pile up huge profits in under an hour a day.
You won’t have to spend much time on this system and you won’t trade very often – but you will make a lot of money and that at the end of the day, is what forex trading is all about.
|
|
|
| |
| ForexGen's Mission |
| 04.16.08 (3:24 am) [edit] |
|
ForexGen's mission is to provide an online Forex trading platform that allows clients to trade the Forex market easily and successfully. On top of dealing with forex .Our online trading platform is unique and traders wishing to buy and sell currencies, options and indices will find it very user-friendly. Whether the value of a currency pair goes up or down, traders may benefit from it. By using our forex trading platform, clients also have access to real-time prices of indices, gold, silver and options.
Trading online with ForexGen is easy: clients can register to our platform in 3 easy steps, and within minutes, they have access to the largest financial market in the world - around $3 trillion in overall daily trade volume. Since Forex Trading practically never stops, the ForexGen Forex Trading Platform is available any time of the day. It offers free technical analyses, charts (including Japanese candlesticks), graphs, indicators such as RSI and MA and an up-to-date economic calendar
ForexGen provides you with all the resources needed to increase your chances of making profit when trading Forex. ForexGen is also one of the rare online trading platforms to offer options trading on the main currency pairs. Once you start trading on the ForexGen Trading Platform – whether via our Standard Account, Mini Account or Demo Account – you will quickly understand why so many investors place their trust in ForexGen when it comes to option, CFD and forex trading.
|
|
|
| |
| Types of Analysis with ForexGen |
| 04.16.08 (3:18 am) [edit] |
|
There are two principal and confronting schools in Forex analysis - the fundamentalists and technicians. Both are supposed to be right. Sometimes technicians are more successful, other times the fundamentalists are gaining more profit. And usually when one group of analysts makes a mistake the other surely says, "We told you so." So, which one to chose? There are many possible answers to that question, and three of them are the most popular.
If you are a "long-term" Forex investor in search of enterprises with big capital, growth and income potential, the fundamentals are better. If you are a "short-term" Forex investor, or a Forex market trader, in search for companies who are "on the verge" of being discovered, fundamentals will be better. If you are a "long-term" investor who is not as concerned about one company's basics because you will diversify to minimize risk, or you are a "short-term" investor waiting for investor sentiment to change, then technical analysis will be useful for you.
Nowadays many traders use both fundamental analysis and technical analysis. The technicians tell you about the broad market and its trends. The fundamentalists tell you if an issue has the "basics" for reaching your investment goals. Fundamental and Technical analysis are different in many points. There isn't clear answer, which method has gained more profit during a definite period of study. It's better to use the best ideas from each side. Then the result will be impressive.
|
|
|
| |
| Forex Currencies with ForexGen |
| 04.16.08 (3:12 am) [edit] |
|
The US economy is the largest in the world. That is in the majority of Forex transactions traders involve the US dollar against another currency.
The German mark, the Japanese yen, sterling (British pound) and the Swiss franc have been the basic currency of a lot of trading transactions. Each of these markets has very distinct features.
The German mark has been replaced by the Euro. The German mark was a tower of strength. The traditional role of the Bundesbank was undermined after unification with the former East Germany and it has now been replaced by the European central bank.
The Japanese yen has been highly changible in recent years. In October 1998, the most dramatic currency move in many years was seen as the dollar fell some 15% in just a few days against the Japanese yen.
The Swiss franc serves as does the dollar from time to time, as a "safe haven". This is due to the isolation of the Swiss economy, its independent and neutral political acts and the secrecy of Switzerland's banking system.
The British pound, always a big part of foreign exchange markets and the first currency to be Forex market traded actively against the US dollar via the transatlantic cables (hence the description "cable"), has traditionally weakened against most other currencies. This tendency has been reversed in recent years and the pound will remain an interesting currency as it takes its place as one of the few key European currencies.
European Currencies
European currencies have gained in importance in the last twenty years and have suffered some major crises due to the continued attempt to peg exchange rates to each other. The key to Continental European currencies has been the German mark-French franc Axis that was seen as the backbone of the common currency. The Benelux countries have benefited from long-term stability as well, whereas most Mediterranean and Scandinavian currencies have fluctuated wildly against this European core. The introduction of a common currency in 2001 attracts big changes to foreign exchange trading in Europe. As early as 1998, the participating currencies were fixed against each other and this has forced many European banks to revise many of their trading assets. Overall, however, we do not consider the introduction of the Euro to be particularly detrimental to foreign exchange markets. A feeble Euro has taken the place of the mark and non-participating European currencies will become more inconstant and more exposed to speculative attacks. This will spell a new dawn for sterling trading that will become the main national currency market (together with the Swiss franc) in Europe.
Arising markets
So-called exotic currencies have long offered enormous profit potential as well as very substantial risks. The most noticeable approach has been to single out weak, but fixed currencies for brutal speculative attacks, leading to large devaluations and extensive economic problems for the countries involved. The reason that many emerging currencies are artificially supported to the US dollar or other currencies is normally to force local monetary authorities to act with more discipline and to persuade holders of the currency against the risk of depreciation. Unfortunately, it has proven nearly impossible for most emerging countries to maintain the necessary discipline to justify stable currency levels and the result is nearly always a dramatic devaluation. In leveraged trading, such devaluations offer big profit potential, but in the intermediate periods where the currency is stable, high interest rates will benefit investors with the nerve to hold onto the currency.
This makes the emerging markets very tricky to Forex market trading and while nobody should Forex market trading any foreign exchange market without a solid grasp of the technical aspects, this is even more true in emerging markets. Seen from a commercial company's point of view, however, failure to protect against the risks in such markets can be fatal. Mainly, interest focuses on South East Asia and South America, but there is no reason that both the African Continent and Eastern Europe should not provide interesting markets in the future.
And some words about of how currencies are traded in the Forex market.
In the Forex, currencies are traded in dollar amounts called Lots. One lot is equal to $1,000, which can control $100,000 in currency. This is known as the "margin". Yes with $1000 only you can control $100,000 worth of currency.
Currencies are always traded in pairs in the Forex market. Each pairs has its own unique notation that expresses what currencies are being traded. The notation for a currency pair will always be in this sort of format:
ABC/XYZ
Now ABC/XYZ is not a real currency pair, its just an example of the notation used to identify a currency pair. In this example of ABC/XYZ, ABC would be the symbol for one countries currency and XYZ would be the symbol for another countries currency.
Here are some of the creal and common symbols used in the Forex market:
• USD - The US Dollar
• EUR - The currency of the European Union "EURO"
• GBP - The British Pound
• JPN - The Japanese Yen
• CHF - The Swiss Franc
• AUD - The Australian Dollar
• CAD - The Canadian Dollar
• NZD - The New Zealand Dollar
The most commonly traded currencies are referred to as the 'Majors':
• US Dollar (USD)
• Japanese Yen (JPY)
• Euro (EUR)
• British Pound (GBP)
• Canadian Dollar (CAD)
• Australian Dollar (AUD)
• Swiss Franc (CHF)
Most commonly traded currency pairs are:
• EUR/USD which stands for Euro / US Dollar
• USD/JPY which stand for US Dollar / Japanese Yen
• GBP/USD which stands for British Pound / US Dollar
• USD/CAD which stands for US Dollar / Canadian Dollar
• AUD/USD which stands for Australian Dollar/US Dollar
• USD/CHF which stands for US Dollar / Swiss Franc
• EUR/JPY which stands for Euro / Japanese Yen
These are the symbols you will most commonly see in a Forex market platform. Of course there are many other symbols for other currencies as well, but these are the most commonly traded ones.
A currency can never be traded by itself. So for example you can never trade a JPY by itself. You always need to compare one currency with another currency to make a trade possible. This is the heart of the Forex market.
Numerator and Denominator
The Numerator is the top part of the fraction and the Denominator would obviously be the bottom part of it. Lets take an example with EUR/USD
EUR would be the Numerator (the first currency which is on top)
USD would be the Denominator (the currency that comes below or after the EUR)
The numerator is called the base currency and the denomiator is known as the counter currency.
Now whenever you place a "BUY" order in a Forex platform for example with the EUR/USD pair, what you are actually doing is buying the EUR and selling the USD. Buying in the Forex is known as going "LONG".
On the other hand if you were to sell the pair, you would be selling the EUR and buying the USD. This is known as going "SHORT" exactly like short selling in a stock market. (Short-selling is where you sell a stock/currency/commodity first and then try to buy it back at a lower price).
If you buy or sell a currency pair, you would be buying/selling the base currency (the one on top, NUMERATOR).
It would be the exact opposite of what you did to base currency if you were to sell a currency pair.
You are always buying one currency (the base) and selling another (the counter). If you sell the pair you are simply flipping which one you buy and which one you sell. The transaction is eventually the same.
The great thing about the Forex market unlike trading stocks is that you can always short sell with no restrictions. The good news here is that you can make money when the market drops as well as when it rises. Unlike the stock market where the market has to go up for you to make money, you can make money in both directions trading in the Forex.
|
|
|
| |
| Exchanges Around the World with ForexGen |
| 04.16.08 (3:07 am) [edit] |
|
Technology has fueled the growth of global trading over the past decade, fostering dreams of a single universal marketplace. Yet, investors who have diversified their portfolios across borders and product lines might not always know how their orders are handled on a multiplicity of exchanges and market centers around the globe.
Rules and trading technologies differ significantly not only from one country to the other, but often from one exchange to the other. Rules change frequently too, as exchanges continue to evolve from members-owned monopoly utilities into competitive execution businesses.
ForexGen LLC , which provides direct access to over 50 exchanges and market centers around the world, has incorporated these various exchange rules in its SMART-routing technology to ensure that customers obtain true best execution, no matter what product they trade or where they trade it.
The business of the exchanges is in flux, due to heightened competition and the consolidation trend inherent to a utility-type sector. A number of exchanges have already demutualized and turned themselves into for-profit corporations, some of which are publicly traded. Other markets are merging to better compete in a low-margin business where innovations require substantial investments.
U.S. exchanges face important regulatory challenges as well, with the Securities and Exchange Commission mulling crucial reforms to modernize U.S. capital markets in the 21st century.
The proposed Regulation NMS would acknowledge the advance of electronic trading and likely force the remaining floor-based securities exchanges to alter their model in order to remain competitive. In anticipation of the changes, the New York Stock Exchange has already submitted a proposal for a new hybrid model.
An even bigger challenge may come from the SEC concept release on self-regulatory organizations. It questions the “advisability of implementing enhancements to the current SRO system or pursuing an alternative regulatory model,” which could lead to a single independent regulator with no business ties to the exchanges. Without a regulatory franchise, exchanges would be businesses fighting for customers.
ForexGen has followed how trading began and is still evolving on the major venues that its Universal platform accesses via broadband to trade equities, exchange-traded funds (ETFs), options, futures, foreign exchange and bonds. With Universal, ForexGen provides a gateway to global markets and multiple products from a single account in a single currency.
|
|
|
| |
| ForexGen Trading Platform |
| 04.16.08 (3:04 am) [edit] |
|
Trading Platform Features, Tools & resources to aid successful trading
• Windows-based click and deal trading platform providing trading executions typically under a second
• Real time automated inter-bank dealing prices
• Real-time margining, position keeping and mini statements detailing unrealised & realised profit & loss summaries
• Charts and news
• Free demo
• Market, limit, stop and OCO orders available
• Squawk box facilities - live audio rates of major currency pairs direct to your PC
• Wide range of trading tools
• Live audio rates of major currency pairs direct to your PC
• Live chat interaction with dealers
• Free real time charting package
• Real-time news & analysis of data pre and post release
• Regular economic diaries, updates and FX commentaries
• Telephone trading available
|
|
|
| |
| Advantages of Trading Forex with ForexGen |
| 04.16.08 (3:00 am) [edit] |
|
Advantages of trading margined spot and forward foreign exchange:
• Ability to trade on margin. Access to the FX market can be made using small capital outlays by taking advantage of superior leverage
• The FX market is the largest and most liquid in the world
• 24 hour seamless trading. The FX market is open for a continual 5 1/2 day period allowing you to enter and exit the market at any time
• Ability to establish long (opening purchase) and short (opening sale) positions
• Superior market transparency. There are no multiple exchange listings of the same instrument
• No standard trade sizes exist
• No delivery or contract expiry to consider
Advantages of trading FX using technical analysis
• Strong persistent trends
• No directional bias
Advantages of trading FX using fundamental analysis
• Global economic information readily available
• Considerably less complicated than stock investing
• Ability to trade on news and events
|
|
|
| |
| Financing your FX with ForexGen |
| 04.16.08 (2:58 am) [edit] |
|
Financing your FX positions held overnight
(known as interest rollover or ‘TomNext’)
Trading strategies involve the use of interest rate differentials between the currencies in a pair and those positions that are rolled over from one trading day to the next will incur financing based upon these interest rate differentials. You pay interest on the currency that you sell and receive interest on the currency that you buy.
The interest rate applied is ‘TomNext’ which is an abbreviation for ‘Tomorrow’ or the ‘Next’ business day because the first value date is tomorrow or the next business day. The TomNext price reflects the applicable interest rate between Tomorrow/Next and the ‘Spot value’ date. At (22:00) 10:00pm London Time (Standard FX market Value-Date change time) each day, ForexGen settles all spot positions by closing the trade at the current market rate and re-opening it for the following day’s spot date at a rate that will reflect the interest rate differential.
Example:
You are long the GBP/USD pair.
You will receive interest on the GBP and pay interest on the USD.
If GBP has a higher interest rate than the USD, you will receive a net interest payment but if GBP has a lower interest than the USD, you will pay out a net interest payment.
|
|
|
| |
| The Forex Currency Pairs with ForexGen |
| 04.16.08 (2:53 am) [edit] |
|
Foreign Exchange trading is in general the trading of many currencies of the world. It is emerging as the largest and least regulated market providing the greatest liquidity to investors.
This trading is always done in pairs – Currency Pairs, one currency is bought and the other is sold. Together, they make up what is known as the "exchange rate".
For example, you may buy Euros with Dollars, anticipating that the Euro to increase in value relative to the Dollar. If the Euro rises relative to the Dollar, you sell the position and can earn a profit.
Most commonly traded currencies or the “majors” are:
US Dollar (USD)
Japanese Yen (JPY)
Euro (EUR)
British Pound (GBP)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)
Most commonly traded currency pairs are:
US Dollar and the Japanese Yen (USD/JPY)
Euro and US Dollar (EUR/USD)
US Dollar and Swiss franc (USD/CHF)
British Pound and US Dollar (GBP/USD)
While quoting currency pairs, the first currency is referred to as the base currency and the second as the counter or quote currency. The base currency is always equal to 1 monetary unit of exchange, for example, 1 Dollar, 1 Pound, 1 Euro.
Trading Forex Currency Pairs for Maximum Profit
It is also known as domestic currency or accounting currency and sometimes also referred to as the primary currency of a Forex currency pair. The price represents how much of the quote currency is needed to get one unit of the base currency.
When a currency is quoted against US Dollar, it is known as direct rate. Any currency not against the US Dollar is called a cross rate.
The quote currency is translated into a certain number of units of the base currency. This is also referred to as the foreign currency, secondary currency or counter currency. For example, if you find that a quote of USD/JPY is at 1.30, it says that for every 1 US Dollar, you get 1.30 Japanese Yen. When you quote for AUD/JPY of 67.73, it says that for every 1 Australian Dollar, you get 67.73 Japanese Yen.
Currency pairs are generally traded as 100,000 units of the base currency. For example, if you were buying EUR/USD at 0.95 you would be paying Dollars for Euros as follows:
100,000 x .95 = $95,000 for 100,000 Euros
When you find a quote going up, it means that the value of the base currency is rising or in other words, it is getting stronger. If a quote is going down, it means that the base currency is weakening.
The dominant base currencies are:
Euro - EUR/USD, EUR/GBP, EUR/CHF, EUR/JPY, EUR/CAD
British Pound - GBP/USD, GBP/CHF, GBP/JPY, GBP/CAD
US Dollar - USD/CAD, USD/JPY, USD/CHF
The currency pairs are usually traded and quoted with a ‘bid’ and ‘ask’ price. The ‘bid’ is the price at which you are willing to buy and the ‘ask’ is the price at which price you are willing to sell.
For example, if the USD/EUR currency pair is quoted as - USD/EUR = 1.5 and you purchase the pair, this means that for every 1.5 euros that you sell, you get US$1. If you sold the currency pair, you receive 1.5 euros for every US$1 you sell.
The key to successful trading lies in selecting one or two pairs of currencies that you wish to trade in as a beginner. As you gain confidence, you may wish to add more pairs in your trading portfolio. But for a new trader or investor it is always advised to have limited pair just to ensure simplicity. And that what ForexGen Promises with.
|
|
|
| |
| Developing a Forex Strategy with ForexGen |
| 04.16.08 (2:50 am) [edit] |
|
A fool-proof trading strategy can help you gain profit from day one in the Forex market. If you spend some time to study the market you will find some price patterns that recur consistently.
You can substantiate your observations with charts or graphs using a strategy builder software and then finally develop a strategy unique for your trading habits.
So developing a sound and effective trading strategy is the important foundation of the trading. You must develop working knowledge of technical analysis as well as knowledge of some of the more popular technical studies before deciding which is going to be the best strategy for you.
A trading strategy should optimize your risk with respect to the reward, or vise versa. It should have a disciplined method of limiting the risk and make the most out of favorable market moves.
Using Technical Analysis to Build your own Forex Strategy
Technical analysis can supplement your trading strategy. Many professionals for example make use of moving averages along with other indicators. This method has an element of risk control (built-in) – where a long position will be stopped out fairly quickly in a falling market generating a stop-and-reverse signal or a sell signal in a rising market
At the initial stage you should rely on a logical system in having a view of the market. Discipline will be the keyword for establishing yourself as a successful trader. Your trading decisions should not be based on irrational emotions where you continue to experience losses with the hope of regaining the position. Your ability to limit your losses is just as important as determining the entry points.
|
|
|
| |
| A Simple Introduction to Forex Trading |
| 04.16.08 (2:46 am) [edit] |
|
Short for Foreign (currency) Exchange, Forex is the world’s biggest market for trading in currencies. As much as 2 trillion US dollars worth of currency are traded on the Forex on a daily basis. Compare this with the approximately 25 million US dollars traded on the NYSE and you’ll get the picture - Forex is huge.
So what is Forex all about? Simply put, Forex entails buying one currency, let’s say Turkish Lira, and selling another, say US Dollars. In Forex, currencies are always traded and quoted in pairs. The exchange is made through a broker.
Just like the stock market where you are investing in a company, with Forex you are in a way investing in a country. If your company is a success, the value of your stock goes up. Much the same principle is at work in Forex. If the economy of the country whose currency you are trading is robust, the value of that currency will also go up - and you can then sell it for a profit.
Unlike stock markets, there is no “trading pit” in the world of Forex. Forex operates through the internet and other electronic communications and runs 24 hours a day, 5 days a week.
It has only been in the last several years that the Forex has been open to the average person to invest in. The Forex market itself has been around since 1971, but for most of its history only large companies and a few very wealthy individuals possessed the resources to be able to trade in foreign currency. Today however, anyone with a high speed internet connection and a small initial investment (as low as 50 US dollars) can get in on the Forex market.
The seven most commonly traded currencies on the Forex market are U.S. Dollars (USD), Euros (EUR), Japanese Yen (JPY), UK Pounds (GBP), Swiss Francs (CHF), Canadian Dollars (CAD) and Australian Dollars (AUD). Foreign currencies are identified by means of a three letter code. The first two letters stand for the country, while the last letter identifies the nation in question’s currency.
For example:-
USD: U.S. = United States, D = Dollars.
GBP: GB = United Kingdom (Great Britain), P = Pounds.
At any given time, business is going on somewhere in the world. Global business never sleeps, and neither does Forex. This can be beneficial to you - you can trade on the Forex market any time that is convenient to you.
There are seven currencies on the Forex which are called Major Currencies, due to their being the most heavily traded currencies on the market. The biggest four are, in order: U.S. Dollars (USD), Euros (EUR), Japanese Yen (JPY), and UK Pounds (GBP). The remaining three are Swiss Francs (CHF), Canadian Dollars (CAD) and Australian Dollars (AUD).
Advantages Of Forex Trading
There are a few advantages which the Forex trader enjoys which those who trade in the stock market do not.
1.Unlike with stock brokers, the investor does not pay commissions, per se, to the broker. Instead, the dealers in Forex trading receive part of the “spread” (that is to say, the difference) between the buying and selling price of currency. This is generally a very small amount per trade; a fraction of a percent.
2.You can trade on the Forex market any time which is convenient for you, unlike the stock market - it is closed only on weekends, from 5pm Eastern time on Fridays to 12AM on Mondays.
3.As opposed to the stock market, it is nearly impossible for companies or individual investors to manipulate the Forex market. The volume of Forex trading each and every day prevents any one actor from having undue influence. We all know of instances of the stock market being artificially influenced by unscrupulous persons and companies however.
4.Forex trading can be done with borrowed capital, meaning that you need not have hundreds of thousands in liquid assets to trade currency in large numbers. This concept is called Margin Trading. A small amount of your own capital (less than 5 percent) can be used to leverage a large chunk of borrowed assets, which may then be invested. Forex is traded in what is called lots, the normal size of a lot being 100,000 US dollars. Depending on the dealer with whom you deal you may be able to trade is smaller amounts, these are known as mini-lots or micro-lots.
Learn more about Forex Market News with ForexGen at
www.forexgen.com
|
|
|
| |
| Automated Forex Trading - More Trades |
| 04.16.08 (2:41 am) [edit] |
|
This article is part of my ongoing evaluation of ForexGen’s Forex System Selector, a web based automated trading tool that allows the user to select one or more trading systems, and have them automatically traded against an account.
This is running against a one month demo account, which is funded with $100,000. Previous articles have given an overview of the product and the first trades. This article provides an update on trading performance to date.
In terms of the operational smoothness of the system, I can report that it continues to operate flawlessly. I am taking note of this because I have tried several other products that were unstable and continually lost server connectivity. The fact that this product is web based, and on ForexGen’s own server means that connectivity to ForexGen’s quotes and trade execution engine is well controlled.
The trading performance to date is fairly disappointing, but not entirely unexpected. In previous postings, I noted that the performance of the trading models will make or break this product. I believe that I have chosen some of the best and most conservative models, but to date (in the last weeks), one model (which has been responsible for all 4 trades) has lost 116 pips, which is around 2.3% of the trading capital.
One trade, which uses a different model is currently open, and is down around 22 pips at present on the CHF/JPY pair (long)
|
|
|
| |
| World Currency Watch |
| 04.16.08 (2:35 am) [edit] |
|
The ECB's and BOE's rate decisions puts more wind to the back of EUR/GBP!
The Eurozone and the U.K. economies continue to diverge.
For years and years, these two economies followed each other up and down in "lock step". Then the credit/sub-prime crisis hit. This pushed the U.K. economy lower as they experienced the same things that America experienced: Hedge fund blow ups, banks struggling, housing prices falling, etc.
On the other hand, many other European banks didn't have as much exposure to "sub-prime" as did the "financial epicenter", the U.K.
So as these economies "de-linked" and continue to diverge, it's produced a heck of an uptrend in the EUR/GBP pair. Click on the chart to enlarge it below.
Learn more about Forex Market News with ForexGen at
www.forexgen.com
|
|
|
| |
| What Drove the US Dollar to a Record Low |
| 04.16.08 (2:26 am) [edit] |
|
Those who may have hoped for a recovery in the US dollar have been sorely disappointed. The greenback hit a record low against the Euro and it will just be a matter of time before the EUR/USD hits 1.60. Before you know it, we’ll be talking about the possibility of one Euro being worth 2 US dollars. Although this may be far fetched, who would have thought that the Swiss franc would be worth more than a US dollar?
Although the once mighty greenback faces long term pressures such as a depressed labor market that is expected to deteriorate further and the strong possibility of another contraction in retail sales, the latest round of dollar weakness was actually triggered by the following:
1) News that Lehman Brothers liquidated 3 of its investment funds due to “market disruptions.”
2) Concerns that the usually stubborn ECB President will hold his ground on inflationary pressures, which he did. Eurozone interest rates remain at 6 year highs despite clear signs of slowing growth.
3) Strong Eurozone and UK Economic Data - French and Italian industrial production both beat expectations while the UK trade deficit narrowed.
The dollar continued to remain under pressure as the trade deficit increased in the month of February. Even though everyone was looking for the weaker dollar to help boost trade, I forecasted an increase in the deficit because the previous drop in the ISM manufacturing index told us that it would be weak (Forecasting News)
Jobless claims also dropped sharply but the improvement is primarily due to the Easter Calendar effect. I still expect claims for unemployment to rise especially since continuing claims remain at very high levels.
Not only is the US dollar trading at a record low against the Euro, but it also slipped below 7 Chinese Yuan. With this big psychological barrier breached, the G7’s criticism towards China’s currency regime will be limited.
Nothing has changed and if anything, ECB President Trichet has confirmed his hawkishness. US retail sales are due for release next week and with Linens ‘n Things joining Domain, Fortunoff, and Sharper Image in filing for bankruptcy protection, consumer spending will contract for another month. Crude oil and gasoline prices have also hit a record high which is going to hurt consumer spending further.
Learn more about Forex Market News with ForexGen at
www.forexgen.com
|
|
|
| |
| Trade for a Living with ForexGen |
| 04.16.08 (2:20 am) [edit] |
|
So you Want To Trade for a Living
I always enjoy Brett's books on trading psychology. While impressed by his ongoing sharing about this important subject, I emailed him recently to request an article for aspiring traders who want to trade for a living. This is not an easy feat, but it is not mission impossible. Trading the financial markets is basically trading your belief on the financial markets. It takes a disciplined mindset, proper money management and a good trading system to trade profitably. Most workshops teach you the technical skills, but rarely touch deeply on the subject of trading psychology. Therefore, I recommend you to read "Enhancing Trader Performance" by Brett N. Steenbarger to develope cutting edge of trading psychology. Below is an article he approved to publish at FX Operator:
I receive quite a few emails from aspiring full-time traders. Some hope to land positions with trading firms; others are looking to make a living by trading independently. Here are a few considerations for those thinking of making the leap:
1. Make sure you're adequately capitalized - This is, in my experience, the achilles heel of most traders who aspire to make a career of their market participation. If you start with a capital base under $100,000, you have to make a huge annual return on your money year after year to sustain a decent living. That leads traders with small accounts to take outsized risks, and those risks are what eventually blow them up. As a relatively new trader, you'd do *very* well to make 20% on your money per year after costs. If you can't make an adequate living from 20% returns, you know you're undercapitalized.
2. If you're not adequately capitalized, focus on building a track record - It doesn't matter if you're trading small. If you can show consistent returns from your trading and sound money management, you'll have something to take to a proprietary trading firm to land a position. They will front you capital, and you can get your start in the business. If you don't have the track record, however, you'll find many doors closed. Motivation and a passion for trading don't substitute for experience and demonstrated skill.
3. Make sure you have a durable edge - Before you quit your day job and pursue trading, make sure you've traded in a variety of market conditions over a variety of market cycles. Look at it this way: if a person with a track record of a few months asked you to give him money to trade for your account, would you pony up? Probably not. For the same reasons, you should establish a sound track record with solid profitability and good risk management before you make the full-time leap. Make as many of your mistakes as possible *before* you go full time.
4. Make sure you have reserves - Just as many new businesses tread water their first year, many traders struggle to cover costs when they go "live". After all, to cover commission, equipment, and software costs alone requires a fair return on capital. You should have more than a year's worth of living expenses available as liquid capital before you go full time. A second income (your own or from a spouse) also helps tremendously. This will take pressure off your early performance and help you focus on making good trades, rather than making the rent money.
The bottom line is that starting a trading career truly is starting an entrepreneurial business. The same dynamics that lead to success in startup firms--from knowing your markets to having a solid plan to being well capitalized to executing on details--apply to aspiring traders. If you can approach trading with the mindset, work ethic, and creativity of a successful entrepreneur, you have a real shot. And that's what entrepreneurs live for.
|
|
|
| |
| Quality Dealing Services |
| 04.16.08 (2:14 am) [edit] |
|
As a Forex trader, you don’t want your hard work to be undermined by substandard dealing desk staff. The ForexGen team of experienced dealers is dedicated to ensuring that your trades are executed in the most timely and accurate manner possible. Unlike some other Forex brokers, we will never execute a market order at a price other than one which you approve. In addition, our dealers will often execute your order at your original price even if the market has moved against you — another practice that sets ForexGen apart from the average broker.
The ForexGen dealing desk strives to provide its clients with some of the fairest and highest quality order execution in the market. Our dealing desk offers both online as well as phone based execution when necessary. Our dealing support team is available 24 hours a day to handle dealing related issues and disputes.
Market Orders
Market orders are created when a trader wants to open a position at the current market price. After the trader clicks on a price, he or she must confirm the price prior to execution. The price sent to the dealing desk will be the price shown in the confirmation window the moment the trader accepted the trade ForexGen will execute the trade in real-time if the available price is at or within a few pips of the requested price. Once the order is executed the opened position instantaneousely appears on the client’s trading platform.
If the market has moved and no price within a few pips of the requested price is available, the dealing desk will send the client a requote at the most current market price. The client can then either accept or reject the requote. Orders will never be executed at the new price without the client’s prior consent. This means that there is never slippage on market orders. Slippage is defined as the difference between the price approved by the client and the price at which the order is actually executed.
In an attempt to decrease the occurrence of requotes during fast moving markets and to help guarantee effective market entry during major jumps in market price, ForexGen has introduced a Trader’s Range feature in its VT Trader software. The Trader’s Range option allows clients to automatically approve requotes within a chosen range. For example, if Trader’s Range is set to 10, requotes within ten pips of the requested price will be processed without requiring the client’s confirmation. Please note that because orders placed by trading systems are classified as market orders, they are subject to requoting as per market order processing procedures.
Conditional Orders (stops, limits, entry stops and entry limits)
Conditional orders are triggered when the market price reaches the price specified in the order. When this happens, the client’s initial order is activated, requesting that the order be filled at the specified price. Under normal market conditions, ForexGen will honor the specified price on conditional orders of up to 100 mini or 10 standard lots. Larger orders as well as orders executed in extremely volatile markets will be executed at the next available quote if the market has passed over the requested price. This is known to occur over the weekend, when Sunday’s opening price is sometimes significantly different from Friday’s closing and during major market moves.
Many Forex dealers widen their spreads prior to a major market move, thus making market entry more difficult. As ForexGen offers fixed spreads, ensuring that you can always expect quality prices, we may limit the placement of new conditional orders to at least 35 pips away from the current market price for approximately 15 minutes before major news announcements. Under normal market conditions you may place conditional orders as close as 5 pips from the market price.
|
|
|
| |
| Forex Trading Terms |
| 04.16.08 (2:09 am) [edit] |
|
ForexGen has some of the most competitive Forex trading terms on the market today! Learn more about each of our trading terms below.
Minimum Initial Deposit – Open a live account with CMS with a low minimum initial deposit of $200.
Universal Accounts – Unlike many Forex brokers, CMS Forex allows you to trade both mini (10,000) and standard (100,000) lots under a single account.
Multi-Currency Accounts – Open an account in one of eight base currencies, allowing you to avoid exposure to exchange risk when depositing and withdrawing funds.
No Commission† – CMS charges no commission on your trades; we are compensated by the Bid/Ask spread.
Spread – CMS offers competitive fixed spreads on 19 currency pairs, even under volatile market conditions.
Order Processing – We pride ourselves on fast, fair, and reliable order execution. We fill your orders at the best available market prices in seconds.
Order Types – CMS Forex offers an array of effective order types that help you enter the market efficiently, manage your positions, and minimize losses.
Rollover Interest Policy – CMS Forex pays and charges clients rollover interest at competitive rollover rates for all open mini and standard positions.
Interest on Unused Margin‡ – CMS Forex offers our clients the benefit of earning interest on unused margin for accounts greater than $10,000 USD.
Leverage & Margin – CMS gives clients the opportunity to trade at a maximum leverage option of 400:1. Leverage may increase potential gains or losses on a given position.
Margin Calls – We have a policy in place to protect you from losing more money than you have in your account by automatically closing out positions that activate a margin call.
Hedging – Hedging a trade allows you to maintain both a long and a short position on the same currency pair at a given time, at no additional margin.
|
|
|
| |
| Safety of Funds with ForexGen |
| 04.16.08 (2:04 am) [edit] |
|
Maintaining the security of your money is a top priority at ForexGen. No Forex broker can truly guarantee the safety of a client’s Forex deposits. Therefore you should choose your Forex dealer after close consideration.
Quite often the best way to judge a firm’s financial integrity is by its reputation and the commitment it shows to its clients through its service and business decisions. Our devotion to our clients has made our firm a respected industry leader. Investors must be prudent in regard to where they hold their funds and it is vital to consider the integrity of the firm and its management when making one’s decision.
Furthermore, our firm holds all deposits with only highly reputable financial institutions. Our firm is grateful for the trust our clients place in us, and we do everything in our power to preserve the safety of our clients’ funds.
|
|
|
| |
| The Importance of Keeping a Log |
| 04.16.08 (1:55 am) [edit] |
|
How many times have you read a book or a post telling you to keep a trading log. But you don't. Or it isn't consistent or some other excuse.
The reason I believe that most traders don't keep a log (remember most traders don't make money either) is because it requires discipline. And it requires that you confront your trading - warts and all.
I've posted a copy of today's trading log for the ER2 and YM. You'll notice that there are 2 trades that shouldn't have been taken at all! | |
