ForexGen | a Simple Route to Forex Profits

If you want to get started in currency trading, currency swing trading is ideal. Here is a simple, easy to understand swing trading system to help you trade currencies for profit.

Swing trading is based on sound logic, unlike forex scalping or day trading which is the route a huge amount of traders go and lose.

Forex day trading and scalping doesn't work, because volatility in short term time frames is random, so you can never get the odds on your side.

Currency swing trading though involves using valid data of around 2 - 7 days which is valid and is based on the following logic.

Markets move to the following equation.

Fundamentals + Trader Perception of = Price

It's not the facts that are important; it's how traders perceive them that is.

Traders will always push prices to far away from the fundamentals, when greed and fear take hold.

Prices then become overbought and oversold in the short term and by executing trading signals against these overbought and oversold levels, the trader can make a profit, as prices return to more realistic levels which are in line with the fundamentals.

These price spikes are easy to see on a forex chart.

The trader can use the following method to take advantage of opportunities.

1. Look for a price spike
You are looking for price spikes, that make the market overbought or oversold in the short term and look for a level you think will hold.

2. Use Momentum Oscillators

These will show you when short term prices are overbought or oversold.

We have discussed them fully in our other articles. Some excellent ones to use are - the stochastic, RSI, ADX AND MACD.

These are visual indicators and you don't need to know the calculation, just look at the visual set up.

When currencies become over bought or oversold, you look for a price change in the opposite direction, supported by momentum changing in the direction you wish to trade.

3. Stop and Target

When you get the chance to execute your trading signal, put your stop behind the area of support or resistance you are trading into.

You then need to look to take your profit early if the price moves your way and do it, just before it reaches an important level in the other direction.

You should always take your profit early, before other traders do, as this keeps the odds in your favour.

The above is simple to do and can make big profits.

Currency swing trading is ideal for novices, as it's easy to understand, you get plenty of action and of course, it can be very profitable.

ForexGen Trading

The Foreign Exchange currency market is known as FX. It is the simultaneous buying of one currency and selling another, currencies are traded and exchanged in pairs. Traders are all unified on one goal, making profit. Profits are produced when the prices move in the trader direction.

In the past, Forex markets were accessed only by larger financial institutes, investment banks, large multinational companies, global money managers, international currency dealers, and liquidity providers. Lately, online trading is offering trading platforms for each individual who wants to trade currencies in order to gain profit.

Forex Scalping Success - 5 Key Facts you Need to Know

Forex scalping and day trading is more popular than ever and is the choice of most new forex traders but is it the right one and how do you enjoy forex scalping success - lets find out.

1. Short Term Volatility is Random

Millions of forex traders trade trillions of dollars in currency each day and to say that you can measure what this diverse number of traders will do in a few hours, or a day is laughable you cant.

2. Support and Resistance Levels are Meaningless

To trade any market you need to have valid levels of support or resistance to key off however with all volatility being random in short term trading, prices can and do go anywhere and support and resistance cannot be used - as the data simply isn't valid.

3. No Trading system Will Work

It doesn't matter how good or well thought out the trading system is - if volatility is random and support and resistance not valid it wont work!

In any financial market to win you need to trade the odds and if you cant, you are going to lose longer term. It's a bit like being in a casino - if you can count the cards in a game such as blackjack you win but in a game of pure chance like roulette, play long enough with the odds against you and your going to lose and it's the same in forex scalping.

You cant get the odds on your side and you cant win - PERIOD

4. Forex Scalping Systems Don't have Track Records

Yes they do many traders will say - I have seen them. Sure they have and written all over the track record will be "hypothetical" or "simulated" This means it wasn't traded in the market but done on paper knowing the closing prices!

How hard is that?

You could do it and so can I and even my 10 year old daughter could - but the markets don't work backwards its harder - You have to trade going forwards!

5. Why is it So Popular?

Because it makes a good story and vendors know this.

Most of them have never traded in their lives - but the story of small regular profits and low risk is an easy one to sell, to naive or greedy investors who are looking for an easy way to get rich in forex.

Of course there is no easy way to get rich in forex and you wouldn't expect there to be, with the rewards on offer.

THE GOOD NEWS!

The good news is you can make money in forex trading if you avoid forex scalping and concentrate on trading the odds. This means valid data where you can get the odds in your favour with your forex trading system and trade them for profit.

You can swing trade, looking for trends of a few days to a few weeks, or trend follow looking for trends that last weeks, months or even years. In both forex methods you can trade the odds - the key to a successful forex trading strategy.

Forex scalping is not the only myth in currency trading - but it's a popular one and you need to ignore it and concentrate on getting the right forex education to win.

So leave forex scalping and day trading to the dreamers and greedy traders, who think forex trading is simply a walk in the park and concentrate on building your own forex trading strategy based around trading the odds.

Live Accounts Contest

Trade, Compete, and Win - Begins the 1st of Every Month!

ForexGen has the pleasure to announce the launching of its first monthly Live Accounts contest,
This is NOT a demo contest

this is a live trading competition open for all live mini account holders. At the beginning of each month, the slate is wiped clean and traders have a new opportunity to win the monthly prizes.
What makes this contest unique?

All prizes are CASH prizes with no restrictions on withdrawing the prize money!
How Do I Enter?

You don't have to pay any fee to enter this contest, all ForexGen mini Accounts with a balance of "$1000" and a default leverage of 1:200 are entitled to participate in this contest upon their account holder request by sending an e-mail request on live.contest@forexgen.com

Forex Scalping Methods for Big Consistent Profits

Here we are going to look at Forex Scalping methods and how they aim to achieve big consistent profits from day trading
regularly and looking to accumulate small profits each day to build huge profits overtime. Let’s look at forex scalping in more detail.

Forex scalping is more popular than ever and there are numerous forex trading systems
and e-books, which claim it works but none of them work, (we will return to this in a minute) as the logic behind forex scalping is totally incorrect.

Why Forex Scalping Can NEVER work longer term

The reason it doesn’t work and never can is simple to understand if you think about it – you need valid data!

Consider this:

Each day trillions of dollars are traded by millions of forex traders and the total of all these opinions come together and give us the price.

The thought that you can tell what all these millions of people will do, in just a few hours is laughable.

You can’t!

Volatility can and does take prices anywhere in short time periods and support and resistance levels are meaningless. If you have no valid data, you will lose and that’s EXACTLY what happens to people who try forex scalping or day trading.

You may be saying:

I have seen the proof it works and seen track records presented by forex scalpers and yes you have – but their NOT real!
See the standard CFTC disclaimer below and you will see why these track records cannot be trusted:

“Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those show”.

So you simulate a track record, knowing the closing prices – how hard is that?

Anyone can do that even a child.

The problem of course is:

We don’t have the luxury of knowing the prices when we trade (shame but that’s life!) so doing it in the real world is a lot harder and for people forex scalping it’s impossible.

That’s why you never see a real track record but a hypothetical one which is simply not worth the paper it’s written on and in most cases is simply made up by the vendors.

Where Are The Real Track Records?

Don’t be fooled advertising copy with statements such as:

“Pick tops and bottoms scientific accuracy” make “50 pips a day” or “trade with 80% accuracy” – this is just ad copy and has no back up.

If you don’t believe me ask for a forex scalping real time track record and you won’t get one - try it and see.

Forex scalping and day trading is a good story, but that’s all it is and try it and you will lose - as you can never get the odds in your favor.
Keep in Mind

Forex trading is a great way to make money but its not easy and a lot of the people who sell the courses and e-books on forex scalping try and make it appear so.

Traders who believe the above need to get in the real world.

How to Win

To win, you need to do your homework and get a forex trading system that gets the odds on your side. This means avoiding forex scalping and day trading and trading data that covers longer time frames that’s valid and allows you to get the odds in your favor.

Demo Accounts Contest
Win Cash Prizes

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

Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com

For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com