FX is an open market for trading foreign exchange where money itself is bought and sold. 'Forex day trader' is in general referred to as simply the normal FX trading. Very less difference can be seen. In general cases forex day trader is a person who makes several trades in a day, buying and selling a number of currencies.
They are people who try to increase there profits by taking advantage of the small increase in the currency values. A forex day trader is similar to the stock market trades except that in the forex day traders trade currencies and not stocks. The major advantage of a forex market over stock market is that instead of forex day traders investing and waiting for many years for there stock values to increase, here they just see there currency values increasing and decreasing over time. This allows them to make several trades within a day.
Forex day trading allows forex day trader to open an account for themselves for as less as 250$. The amount that is needed to open an account varies from one company to company. There are several agencies that have brokers mediating a firm or an individual to the market. Brokers are people who educate individuals and firms to work there way through the market. The work of a broker is to help forex day traders to get through the market without suffering much loss.
Only after the internet FX trading becoming so popular, was there an opportunity for even commoners to trade. Until then only co-operate firms and large financial institutions was able to trade in the forex market. Forex now has become so simple that certain traders have taken it as a hobby. With the help of the vast number of software's available they are able to predict the changes in the market and make alterations in there trade accordingly.
Friday, 25 December 2009
Understanding Forex Day Trading
Strategy To Make Money Off The FX market
Trading The FX market can be a lucrative way to make money if you have a firm understanding of what you are doing. The Foreign Exchange Currency Market also known as FOREX, is one of the largest financial markets in the World, and the great thing about it is that it is not heavily regulated or controlled by any major institution, in turn allowing the ordinary person to make money off the FX market if they are properly educated.
The FX market operates 24 hours, 6 days a week and is extremely liquid so it is well suited to intraday and swing traders who are looking to make quick profits in a short timeframe.
However the truth of the matter is that even after most new traders have educated themselves on how the FX market works, they still struggle to make money and eventually become part of the 90% of traders who lose money in the world of Forex. You see trading the FX market is not that simple, and to become profitable you must gain a competitive edge over the competition, and in order to do so you must be an expert or become one fast if you wish to succeed.
A smarter and more efficient way to make some money off the FX market would be to follow in the footsteps of the experts who have already figured out how the market works and developed their own profitable systems to trade the FX markets.
Foreign Exchange Online Trading
To become a Foreign exchange participant, you should at least read a book, if not take a course. Because real money is involved here, you must proceed with utmost caution.
Many Foreign exchange investors sign up with Foreign exchange related websites to receive newsletters, advice, and to keep up with currency trends. Some investors even sign up to receive trends on their phones and PDA's to stay in the game.
The good news is that you have the opportunity to practice with play money before you put any of your hard-earned cash through the Foreign exchange market. When you sign up with a brokerage firm that offers the option to trade online, you can use play money to test and understand the software.
You can use this valuable opportunity to put your research to the test by trying out different trading methods to see if your predictions and analyses are correct. While the money may not be real, the conditions are, which allow you a stable playground to learn and adapt to the Foreign exchange market.
Wednesday, 16 December 2009
The Ultimate Trader Champion
Win Cash Prizes
ForexGen has the pleasure to announce the launching of the ultimate trader champion on the first of every month.Interested clients who wish to participate in this event shall send an e-mail request on contest@forexgen.com including the following information:
- Full name
- Phone number
" Certified copy of the information pages of account holder current valid passport or government issued photo ID"
After we receive your request we will provide you with further details and with your ForexGen demo account login information which will be used in the trading contest.
This Forex contest for the current month will starts on Sunday 20-12-2009 at 10 pm GMT and ends on Thursday 31-12-2009 at 10 pm GMT.
For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com
Tuesday, 15 December 2009
ForexGen is Giving You Cash This Christmas
There aren’t many Forex promotions like this one, but then again there aren’t many Forex Brokers like this one.- We offer 24/7 hour support and a personal account manager to all of our traders.
- We offer training and education resources.
- We send our traders daily Market Reviews by email each day.
- We send the latest trading signals by email.
- And we don’t charge fees or commission.
- Free hedging activities.
- Free Signals, Charts and news.
For more information about Christmas at ForexGen email us at Operations@forexgen.com
Monday, 12 January 2009
Why Your Forex Trading Strategy Should be Excellent
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.
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[ForexGen Money Manager]
Benefits of being a Money Manager with [ForexGen]:
* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”
The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.
The most competitive trading conditions:
* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
Forex Trend Following
Using Breakouts Huge Profits
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.
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Win at Forex Trading
The Major Problem You Must Confront To Enjoy Success
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.
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Making Profit in the Foreign Exchange Market
The currency fluctuate continuously due to reasons such as political, economical reasons, sometimes the changes could be extremely great, therefore, the Forex traders also can have the opportunity in among which makes a profit. For example, the Japanese Yen daily fluctuation is probably between 0.7% to 1.5%, Forex traders may make profit through buying and selling.
All trading could be completed in a short time, the trading strategy could be carry up according to the market conditions, it is extremely flexible, even if the direction looks wrong, the lost could be stop immediately, the lost could reduce but profit potential is still great. Therefore, the Foreign Exchange margin trading is the most flexible and the most reliable investment method.
[ForexGen Services]
Client Services
- Customer Support
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ForexGen offers three types of business partnerships.
* [Introducing Broker]
* [White Label]
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ForexGen Introducing Brokers ,White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a large income sharing plan.
[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.
MAKING TREMENDOUS LONG TERM PROFITS IN FOREX MARKETS
When 95% of traders lose money, what makes you think you can win? To see your chances of succeeding as a Forex trader, here is a checklist for you to see and become one of the elite traders, who make tremendous long term profits.
Following are a few ways to lose money. You may wish to change your mind immediately if you are thinking of trying any of them. Do this to avoid losses and continue your Forex education!
1. Following a Forex Robot with Simulated Gains - You can apparently achieve success without any effort as promised by these. You are asked to accept their track records simulated going backwards. Your equity will get destroyed by trying them.
2. Day trading and Scalping - Due to the short term volatility, simply doesn't work. Like robots, even people selling these always have simulated track records.
Many more of these all fall into the category of trying to find someone else to give you success. This does not work in Forex markets.
Apart from needing a trading edge, you also have to understand ways and reasons of it leading you to success. Let's look at this in detail.
The combination of a simple robust helping you to understand and trade with discipline is what Forex trading is all about. Success comes from within.
You need to know what you are doing to trade with discipline. This translates into having confidence, which you definitely don't get from someone telling you what to do. You get confidence by your own knowledge and learning.
As you have to keep executing trading signals through losing periods, discipline is hard. This has to be continued till you hit a home run, even when the market is fooling you and taking your money. What separates out your Forex trading system from the 95% losers is your trading edge. You can ask what is your trading edge and how will it help you beat the majority? You don't have one if you don't know what it is.
Few succeed in simple looking Forex trading. These elements are present in the winners Forex trading strategy: Using simple robust Forex trading system - Having solid grounding in the basics of Forex trading - Knowing exactly why their system will lead them to success - Having confidence and discipline to stick with their plan - Knowing only they are responsible for their Forex trading success.
You have to stand alone, be confident of your actions and be disciplined to follow your plan in Forex trading
Sounds simple, however it is actually dependent on your approach to Forex trading - with the right mindset and getting the right education. The trader beats his or her self, rather than the market beating the trader in Forex trading. Learn the basic fundamentals, get a suitable system, become confident, get an edge and be disciplined. Do all of these to enjoy currency trading success.
[Why ForexGen]
1. Lowest spreads in the market with 0-1 pip spread in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.
Thursday, 8 January 2009
Why Currency Trading is a Wise Investor’s Game
Currency trading like stock trading is a speculation business. If you can study and predict currency trends well, then you can make a lot of money through currency trading. Other terms that are used for currency trading are Forex, FX and foreign exchange. In currency trading, the trader buys a currency by selling another currency; so buying and selling occurs simultaneously. Currency trading is one of the biggest markets of equity trading. The lifeline of currency trading is currency trading news; one should be constantly watching the market to make profit and to avoid loss. Timing is another crucial aspect of currency trading. The trader should know when to buy and when to sell currencies and it is forex news that helps the trader in making well-informed currency trading decisions.
As compared to stock market, currency trading has relatively lesser regulations. When the trader invests in a particular currency, he or she hopes that the value of that particular currency will increase in the near future. On the other hand, the trader may also try to sell a particular currency when he or she feels that the selling currency has reached the peak and selling at that point will bring in good profit. Since buying and selling happens simultaneously, when the trader sells a currency to make profit, he will have to buy another currency and often the currency whose value is currently lower but that has a potential to increase is bought.
Like in stock trading, the trader should be highly disciplined while trading. When the value of a certain currency increases, the tendency is to wait for long. Waiting for too long can also be at times detrimental because currency market is a highly volatile market and hence highly unpredictable. So when a certain percentage of profit is attained, the trader should try to switch to other currencies that are becoming stronger.
To enter into currency trading one should understand global economics well. You should be able to make ‘currency sense’ out of various unconnected events of the world to the forex market. The world is shrinking fast and what happens in one corner of the world affects the other parts of the world more than ever before. This makes forex trading even more volatile. Therefore, it is not enough to pay attention to the local market but one should also keep a close watch on the global happenings and global currency market news.
If you are tired of the trading costs involved in stock trading, then currency trading is an ideal alternative. Currency trading involves lower trading costs. With the advent of the internet, real time online trading is possible and this has attracted thousands of investors. Moreover, now you can access forex news much faster than before using online sources. You can gain access to forex news instantly through a wide variety of regularly updating forex news websites.
ForexGen offers three types of business partnerships:
*Introducing Broker
*White label
*Money Manager
ForexGen Introducing Brokers, White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a huge income sharing plan.
[ForexGen] provide appropriate services satisfying the needs of all business partner's specified situation and requirements.
Free Forex Trading System - A Simple One That's Proven and Made Millions
Enclosed you will find a free Forex trading system with one rule which is simple and has made savvy traders huge gains for over 25 years. Let's take a look at how you can use it for bigger Forex gains...
Of course you can buy a forex trading system but most sold are junk and only have simulated back tested results - this one on the other hand has made gains for over 25 years and will continue to do so.
The system was devised by one of the trading greats - Richard Donchian who is considered the grandfather of modern trend following and his insight on channels and the 4 Week Rule (the trading system below) are two methods all traders should know about.
Let's take a look at how it works and it's based on one simple rule, here it is.
Buy a new 4 week high and hold the position, until a 4 week low is hit then liquidate the long position and go short. Keep doing the following - buy new 4 week highs and sell new 4 week lows thereafter and always keep a position in the market.
You can't get a much simpler system than the above and you don't even have to think about what to do, the rule is clear and objective, you can simply follow it and it works; here's why.
Forex markets tend to trend for long periods and these trends can be for many weeks or months. These trends tend to start and continue from new market highs or lows, so this system will put you in on every major trend and help you get a good chunk of the profits.
Don't worry about its simplicity - forex markets are best suited to simple, robust systems. The trader who complicates his trading strategy normally will see it fail, as it has too many elements to break.
While the system is simple and works, most traders can't follow it.
It takes tremendous discipline to follow long term trends and they prefer to use shorter term systems which make them feel better or safer - but of course don't work. They also follow for the myths perpetrated by vendors, that you don't get drawdowns in Forex - but you do, even the best systems have them. You have to trade through them, learn to take short term losses and look at the big picture which is longer term gains.
This system will never go out of date and is simple to understand, it also doesn't take long to operate about 15 - 30 minutes a day and the rule tells you exactly what to do.
If you are looking for a long term Forex trading system that's proven, rather than a simulated one which has never been traded and won't work, then check out the free Forex trading system which is the 4 Week Rule and you maybe glad you did.
[ForexGen Introducing Brokers]
Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.
WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?
* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.
In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.
Individualized Service
[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.
ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make [ForexGen]
incomparable to any other rival.
Forex Trading Success - Learn These 3 Points and Success Can Be Yours!
If you want to enjoy Forex trading success then you need to pay attention to the 3 points enclosed, each of them is essential to making big profits so lets take a look at them...
The points we are going look at struck me when I was reading about how trading legend Richard Dennis taught a group of people with no trading experience at all, to trade in just 14 days.
They went on after their training, to make hundreds of millions of dollars in their trading careers and many still trade today.
This group learned quickly and while they had a good tutor, the three points that stand out for success from their story are these.
1. Simple Systems Work Best
The system was essentially simple and was a long term, breakout, trend following system. Anyone could learn it and while it was simple that's why it worked.
All the best systems are, as they are more robust than complicated ones, with fewer elements to break, they are also easier to understand and have confidence in.
So keep your trading method simple and robust to win.
2. Money Management
The key to success in Forex and other leveraged markets is to make sure that you defend what you have, any successful Forex trading strategy is based on sound money management.
Dennis applied to the system strict rules that had to be followed in terms of money management. In fact, the system had far more losers than winners but because they were kept small, the gains when they came more than compensated for the losses.
Any trading system will take losses and you need to get used to this and make sure you cut them quickly with objective money management rules. Don't ever believe the myths you see online about losing periods not occurring, even the best systems lose for weeks on end and you have to trade through them which leads to my next point.
3. Confidence and Discipline is the Key
All the traders that Dennis taught found the system easy to learn - but found the hard part applying it with discipline and sticking with it. This is hard for all traders.
We don't like losing, as it hurts our egos and our emotions try and get involved but if you deviate from your system, you don't have one!
You must have the discipline to trade through losing periods, until you hit a home run.
You don't just get discipline - this comes from the right Forex education, self knowledge and confidence in what you are doing.
Get on the Road to Profits!!
You have seen that Forex trading is a learned skill in this article and you can win but you must pay attention to the points we have covered - but if you do Forex trading success can be yours.
[ForexGen Money Manager]
An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.
Benefits of being a Money Manager with [ForexGen]:
* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”
The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.
The most competitive trading conditions:
* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
Forex Trading Tip - This Tip Can Increase Your Profits Instantly
I have taught or acted as broker for around 6,000 traders and from my experience, in my own trading and watching others, there is one simple tip you can incorporate in your Forex trading strategy which will increase your gains and here it is...
It based on the 80 - 20 rule which is used in many areas of life and in business for example the rule states 80% of your sales and profits, are likely to come from just 20% of your clients and in Forex it means this:
80% of your profits, are likely to come from just 20% of your trades and the fact is most traders' trade to much!
They make the following assumptions which are completely wrong and lose:
They want to trade the short term noise and try day trading and scalping - but as all volatility is random they lose.
Other traders want to be in the market all the time, in case they miss a move but you don't need to be in the market to spot a move, you can wait and see it then act and this puts the odds on your side.
Other traders simply think the more effort they put in and the more trades they make, will mean the market will reward them with profits - but this is simply not so.
In Forex trading, you don't get rewarded for effort, you get rewarded for being right with your trading signal and that's it.
An Easy Stress Free Way to Make Triple Digit Gains
I know traders who trade less than once a month and make triple digit profits, because they wait for the best opportunities and focus on making money - they dot work hard they know the way to make money is to work smart!
Look at any Fore chart and you will see big trends and these are the ones to lock into and hold, there is no point in trying to force the market to give you profits, Forex trading is simply not like that.
You need to have the patience to wait for the right opportunities and then hit them hard, when you see them; it's as simple as that.
So if you want to win on more trades, make bigger profits, in less time, with less stress - Think about the 80 - 20 rule and you can get on the road to currency trading success!
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Wednesday, 7 January 2009
Economic Releases
One should probably not use technical strategies to enter trades right around important economic releases such as the employment report.
Key levels of support and resistance will still come into play, after the fundamental data has played itself out in the market - but the short term technicals will hold little relevance.
The impact of major economic news can take some time before it has finished impacting the market, and the day trader can use this to their advantage - benefiting from the momentum generated by the order flow of the bigger players.
The best opportunities are created when the news comes out way off expectation and the market scrambles to correct itself. This can happen quite frequently with releases such as the nonfarm payrolls part of the employment report.
For a good exit to a trade entered based on fundamentals, the trader should look to a significant technical level.
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Inside Day Breakouts
An inside day is one where trading is contained within the trading range of the previous day.
The volatility breakout strategy entails entering a trade on a stop order above or below the range that has been previously trading - with the expectation that since a breakout has occured price will continue to move in that direction.
One should look for a series of inside days to implement this strategy, and the greater the number of inside days that transpire, the higher the probability of a breakout.
Also, the longer the timeframe used, the stronger the breakout opportunity - hourly and daily timeframes are the best to use.
This strategy is also best used with pairs that see tighter ranges - these are typically the crosses - currency pairs that do not have the USD as part of the pairing such as the EUR/GBP and the EUR/CHF.
Inevitably there will be false breakouts, as the interbank dealers try to trigger the stop orders just outside the breakout levels.
In order to avoid being caught in a false breakout situation, enter your trade with a stop order at least 10-15 pips above the breakout level - meaning the levels above or below the trading range depending on whether the market is breaking out to the upside or downside.
(In case you are not clear on this - a stop order is one that is placed above or below where the market is currently trading and becomes a market order when the market touches the price where the stop was entered. A buy stop is placed above the market and a sell stop is placed below.)
Again one can look to the ADX as an indicator to whether the market is still range bound or beginning to trend one way or another.
Stay away from inside day breakout trade if the ADX is below 20 and trending downward.
The breakout strategy is valuable in that it teaches the trader to do something that is normally counter intuitive - that is to buy the high or sell the low. Novice traders are more likely to try to pick tops and bottoms.
Often the breakout will occur in a fast moving market, making decisiveness even harder. However, if your strategy is in place and you have identified the opportunity, you will be ahead of the game.
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[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.
Important Psychological Levels
FX day traders should be able to identify price areas where large order flows will be triggered through the interbank market, and take advantage of the moves that are created by them.
Such levels include major areas of support and resistance on the daily chart and also round numbers such as double zeros - for example EUR/USD 1.2700.
Careful placement of stop loss and profit target orders enables the trader to execute trades with a strongly positive risk/reward factor.
For example, one might place a stop loss of 15 pips from the level and a profit target of 50 pips on the other side if you are attempting to profit from a bounce at such a level.
One should note that stop loss orders are normally placed somewhat beyond the key round figure numbers and profit taking orders are normally right at the key levels.
Attempting to catch a rebound off a major level is best executed when there are other technical factors supporting the rebound. For example if the market had been trading below its 20 period Simple Moving Average (SMA) prior to reaching the key level, this would support the decision to attempt to catch a rebound at that level.
[Why ForexGen]1. Lowest spreads in the market with 0-1 pip spread in 10 pairs, no commissions, no swaps and instant account Activation.
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3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.
US Dollar Index
The US Dollar Index (USDX) is a futures contract offered by the New York Board of Trade. It is a trade-weighted average of six foreign currencies against the dollar. Currently, the index includes euros (EUR), Japanese yen (JPY), British pounds (GBP), Canadian dollars (CAD), Swedish kronas (SEK) and Swiss francs (CHF).
USDX broadly reflects the dollar's standing compared to the other major currencies of the world. It is widely used to hedge risk in the currency markets or to take a position in the US Dollar without having the risk exposure of a single currency pair.
The US Dollar Index allows the fx trader a feel for what is going on in the FX market globally at a glance. If the Dollar Index is trending lower, then it is likely that a major currency that is a component of it is trading higher.
ForexGen offers three types of business partnerships:
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ForexGen Introducing Brokers, White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a huge income sharing plan.
[ForexGen] provide appropriate services satisfying the needs of all business partner's specified situation and requirements.
Forex Trading Strategies
Successfully trading the forex market on an intraday basis requires precision and a very careful selection of trades.
The enormous scope of the trillion dollar, 24 hour, globe spanning fx market presents a myriad of opportunities for the short term trader - however a day trader in this market must be aware of certain inherent factors to overcome.
Firstly, the bid ask spread in the fx market, normally at least 3 pips, makes trading on the shortest timeframe - in and out within seconds - very difficult.
The daily ranges can be very wide among certain currency pairs, presenting many opportunities for the day trader - however I feel that the intraday forex trader should look for specific technical and fundamental conditions before entering trades.
Secondly, due to the fact that there is currently no centralized exchange in the forex market, traders lack data on volume and open interest (the number of active contracts for a given security over a given time period)- important sources for traders in other markets - which causes a necessary shift in focus to other technical and fundamental factors.
While interbank dealers are able to see the order book and use this to their advantage, the retail fx trader can exploit their ability to react faster, and also with the knowledge that their trades will not move the market, as the trades of the larger institutions will.
The CME and Reuters are planning to launch a trading platform for fx in Q1 2007 - using CME trade matching and clearing technology - this will address the issues mentioned above (ie the spread will be tighter, you will be able to see volume etc.) and it will be interesting to see whether they can attract the liquidity and create a successful marketplace.
While both technical and fundamental analysis are important to the forex trader, we will begin with a focus on technicals.
[ForexGen Introducing Brokers]
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.
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Tuesday, 6 January 2009
Interest Rate Risk Exposure
Interest rate exposure refers to the interest rate differential between the two countries' currencies in a foreign exchange contract. The interest rate differential is also roughly equal to the "carry" cost paid to hedge a forward or futures contract. As a side note, arbitragers are investors that take advantage when interest rate differentials between the foreign exchange spot rate and either the forward or futures contract are either to high or too low.
In simplest terms, an arbitrager may sell when the carry cost he or she can collect is at a premium to the actual carry cost of the contract sold. Conversely, an arbitrager may buy when the carry cost he or she may pay is less than the actual carry cost of the contract bought. Either way, the arbitrager is looking to profit from a small price discrepancy due to interest rate differentials.
[ForexGen Money Manager]
An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.
Benefits of being a Money Manager with [ForexGen]:
* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”
The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.
The most competitive trading conditions:
* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
Foreign Exchange Rate Risk Exposure
Foreign exchange rate risk exposure is common to virtually all who conduct international business and/or trading. Buying and/or selling of goods or services denominated in foreign currencies can immediately expose you to foreign exchange rate risk.
If a firm price is quoted ahead of time for a contract using a foreign exchange rate that is deemed appropriate at the time the quote is given, the foreign exchange rate quote may not necessarily be appropriate at the time of the actual agreement or performance of the contract. Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.
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