Pros And Cons Of Forex Trading | ForexGen

ForexGen introduces to all its users a free online academy that would aid them in either learning more about Forex market or in developing their strategies. It is a free academy available online; you can register and enjoy ForexGen services.

Trading is a skill that takes time to learn. Think of it like Boxing it's also a skill that takes time to learn. If you get into a professional boxing ring without any training, you'll get beat up physically! If you get into the Forex ring without any training, you'll get beat up financially!

The similarities are that both the examples are Skills, and both require psychological preparation. The difference is that one is physical and the other is financial.

We can get over a physical beating usually in a few days or weeks, BUT a financial beating can be devastating and easily affect us for the rest of our lives, not only does it hurt our hip pocket but it can cause problems with our relationships and family. So when we get into the Forex ring we have to be prepared.

The Professional Boxer

When a professional boxer gets in the ring he has already been practicing in a safe environment usually for years, this safe environment is where he can make mistakes without having medical treatment. He can also spar with other opponents that have more skills and experience then he does and he learns from them. He also has someone there to watch him and give advice and guidance. Then when he is ready, he gets into the ring and boxes for real, he's accepted the risk and KNOWS that he can get hurt, but he's also studied his opponent and done his home work, so he KNOWS he has a good chance. He can still lose this round but if he wins most of them he will take the money home. BUT! What about the psychological side? Does he fear getting into the ring? Sometimes! But he's aware of it and he can control how it affects him in a way that is beneficial. Will he be thinking about the money he'll make? Or will he be thinking about the fight as is happens and planning his next moves during the breaks? He'll be analyzing the results from the previous rounds and making changes in his strategy for the next round.

The professional Trader

Can you see what's coming next? If so than, you've learned to analyze what you read and form a projection into the future. (A very valuable skill for the FOREX Trader) A forex trader, like the professional boxer, will not get into the Forex trading ring without being prepared first. He might not spend years practicing in the Demonstration Account, but he will at least have spent a month or two or three, sparing with the Forex Market in a safe environment that he won't get beat up in. He'll practice trading forex against all the other traders and learn from them, and he'll also have someone watching him and giving advice, and guidance. Then when he is ready, he'll get into the Forex trading ring and trade forex for real, he's accepted the risk and KNOWS that he can get hurt, but he's also studied the Forex market and done his home work, so he KNOWS he has a good chance. He can still lose on this trade but if he wins most of the trades he will take the money home. BUT! What about the psychological side? Does he fear getting into the forex trading ring? Sometimes! But he's aware of this fear, but he can control how it affects him, in a way that is beneficial to his forex trading. Will he be thinking about the money he'll make? Or will he be thinking about the things that are influencing the market as is happens and planning his next trades while he waits for the results? He'll be analyzing the results from the previous trades and making changes in his strategy or continuing with the one that's working, and planning for the next Forex Trade.

So it's easy to see that trading with a Forex Trading Demonstration account is something everyone should do before getting into a live Forex Trading account.

The practice account will give the trader MOST of the skills necessary, to be able to trade profitably, giving them the training ring to spar in.

ForexGen is the easiest and fastest gateway for the traders to perform successful trading, which provides a unique institutional investor professional facilities and highly qualified individualized services for the international customer.

Make Your Genuine Choice | ForexGen

If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX' market, ForexGen has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills. No hard expressions, no buzz words, and no rocket science language are used throughout these lessons.

A friend of mine set up a trading business in Indonesia . We met when we were still earning our degrees in Melbourne , Australia . He imports steel and plastic from China and distributes them to his home country. It took him two years before his business stabilized and he is now making a good living out of it.

Even though there is now an ocean between us, we manage to talk once a year over the telephone. He asked me once if I wanted to meet him in a trade show in China . He learned how to speak Mandarin so he finds it easy to get around China . With his ability to communicate with the Chinese, he offered his assistance to me if I ever wanted to start my own import or export business.

I had the option of trading in whatever goods I wanted. According to my friend, it could be 'anything you can think of'. Had I taken the option, I would have traded shoes because I can vary my investment size according to my financial capability. With limited funds to invest, I can buy only a few pairs of shoes. If I can find a lot of money to invest, I can order big too. I had a couple of months to decide. So I did some thinking.

Readers of this article may not be considering trading shoes, but I will use it as an example to help you decide about the choices available to you.

RESEARCH & INFORMATION

For someone to trade shoes, you would have to:
1. Research the local market for shoes,
2. Find out more about the big players in the shoe business,
3. Get acquainted with the different types of shoes and how much they are selling for,
4. Find out what costs are involved in importing shoes and
5. Determine how you can market and distribute them.
6. When I trade currencies, I have all the information I need by looking at a chart. It takes a long time to learn to do this well, but so does selling shoes.

INITIAL CAPITAL

To order a thousand pairs of shoes, you would require a lot more money than what it takes to start trading forex: usually, anything between $200 to $300 is sufficient. (In my book: The Part-Time Currency Trader , I discuss the costs of trading forex).

LEGALITIES

To start, you would have to establish the paperwork necessary to ensure that you get familiar with the legalities of the goods you wish to import and distribute.

What if a particular shipment of shoes does not sell, because even though they may have been popular in other countries, consumers in your country might not like it? Do you have more money to order another batch?

What if the stock you buy is defective and the seller does not want to have anything more to do with you? You can take them to court, but can you muster the resources to do so? You can threaten them by not doing business with them ever again, but would they care when they have other businesses to deal with?

PASSION

Successful entrepreneurs have taken at least two years to stabilize their business. Others take a lot longer. When starting and building a business, your expectations need to be set for the long term, because it will take time.

Harrison Ford — the famous American actor — had a strategy. He saw that many of the actors, who came to Hollywood with dreams of becoming superstars, gave up because it was too hard. So he figured that he could succeed one day, if he could only persevere with all the hardships associated with his endeavor.

Your ability to stay focused on a task long enough to attain success would be greatly improved if you liked what you do. Would you enjoy being surrounded with things related to shoes for most of your life, or would you hate it?

CONVENIENCE

The forex market is open 24 hours a day. You can buy and sell currencies in your pyjamas at midnight if you like and the transaction is complete before you go back to bed.

BENEFITS OF TRADING FOREX OVER SHOES

There are advantages in trading shoes, but I could see more benefits in trading currencies. You do not need to worry about the process of importing or exporting, transporting goods, defective items, marketing and distribution as well as ensuring that you are complying with the law. Furthermore, in forex, you do not have to invest too much just to 'test the waters'.

ONE MONTH LATER

A month later, I rang my friend and told him that I might take him up on his offer in the future, if it was still available. However for the moment, I explained that I had more passion for currencies than I had for shoes. He laughed and we agreed to meet one day so that I can tell him more about currencies.

By registering on ForexGen, you create your ForexGen profile and you can go ahead and open as many Demo accounts, and live accounts as you need. All accounts can be created online and managed under your ForexGen profile. You can mix between Mini, Standard, Pro, Premium and No Dealing Desk accounts in one.

Make Money In Forex Trading | ForexGen

ForexGen introduces to all its users a free online academy that would aid them in either learning more about Forex market or in developing their strategies. It is a free academy available online; you can register and enjoy ForexGen services.

Your Mother Could Make Money In Forex Trading

The question would be not whether she could but rather would she enter the Forex trading market. The Forex day trading arena is a veritable snake pit ripe for scam artists to bilk money out of unwary investors. On the other hand, it is a forum for educated traders with the correct education, tools, and trading strategy to make a handsome income.

Becoming a successful Forex trader basically comes down to four things; 1) attaining the correct education, 2) using Forex tools which 3) use your own personal trading strategy, and 4) finding the correct Forex broker to fulfill your requirements. Let's look at these individually:

Attaining the correct education. Your Mother may not know the difference between a Forex PIP and one of the backup singers for Gladys Knight. So would you send her to one of those infomercial Forex riches classes to find out? We hope not! There are literally hundreds of training courses and materials out there for proper training. Word of mouth recommendations might be the best path to follow here.

Forex tools can also do many things like send trading signals and various buy/sell alerts to your desktop or mobile device based on what your personal trading philosophy dictates. Many of these tools are software based and some are provided via your favorite Forex trading sites. Not all people base decisions based on these signals though and use things like technical and fundamental analysis to determine when to buy or sell.

ForexGen trading service performance is based on respect and appreciation which is only achieved by offering intelligent trading tools for secure online trading.

It also is essential to develop your own personal trading strategy. Your ability to assume certain risks might not exactly be what other traders or your broker recommends. A Forex trading strategy is not something generic and involves your personal game plan.

Before trading Forex you need to set up an account with a Forex broker. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers.

One of the most important ways to make the greatest return (and, also carry a greater loss risk) in Forex trading is with the use of a margin account. These accounts may let you trade as much as $100k in currency for as little as $1000. Margin accounts are the lifeblood of Forex trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the currency traded? Is it the same every day of the week? Some brokers may offer different margins for mini and standard accounts.

Used correctly and together, the above items can lead to a comfortable part or full time income. If you don't use all the information available to you, though, you may as well let Mom take the weekend visit to Vegas with her money to see Gladys Knight. Make sure that she has developed her own Forex trading strategy and has used "paper trades" many times before actually beginning trading for real. Better that ole Mom is equipped to make some real money rather than throwing it away on the gaming tables.

Active traders who wish to enjoy the Forex trading advantages can work with the ForexGen account. ForexGen provides leverage up to 500:1 and 100,000 - 10,000 Trade Sizes. Open an account with as little as $250. ForexGen offer swap-free accounts. Swaps will not be applied to ForexGen accounts. ForexGen will not charge a fee of per traded lot round turn.

Try Advantages Of The Forex Market | ForexGen

If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX' market, ForexGen has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills.

What are the advantages of the Forex Market over other types of investments?

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.

The Forex market is also very liquid. When trading Forex you have full control of your capital.

Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control

Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex Trading can be risky, but with having the ability to have a good system to follow, good money management skills, and possessing self discipline, Forex trading can be a relatively low risk investment.

The Forex market can be traded anytime, anywhere. As long as you have access to a computer, you have the ability to trade the Forex market. An important thing to remember is before jumping into trading currencies, is it wise to practice with "paper money", or "fake money." Most brokers have demo accounts where you can download their trading station and practice real time with fake money. While this is no guarantee of your performance with real money, practicing can give you a huge advantage to become better prepared when you trade with your real, hard earned money. There are also many Forex courses on the internet, just be careful when choosing which ones to purchase.

Winning in trading depends on using the right strategy and controlling all the moves. Trading strategies are discussed in details at ForexGen Academy.

ForexGen Review | Forex Scalping For Profits

ForexGen delivers what traders want: instant order execution, lowest spreads, flexible starting capital, fast online and free deposits and withdrawal, and most of all, solid funds security.

Scalping the forex market is something that all new traders aspire to do. It is however not easy and requires allot of concentration and discipline.

Once you decide on a set you are going to use you will need to spend a few months religiously for a couple of hours a day trading on demo until you get to know your setup and a feel for scalping it.

A popular way to scalp the forex on M1 charts is to use hull moving averages. Plot the following WMA's (Weighted Moving Averages) on your chart: 10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 110, 120, 130, 140, 150, 160, 170, 180, 190, 200, 210, 220, 240. Now set price to a line on Average or, if you don't have that, set it to line on Close. Set all the WMA's to one color that is different to price.

This will create a pretty chart. Using these WMA's you can easily see the strength of a trend, you will notice that price tends to retrace back and forth from the moving averages.

What we are looking for is resistance in a up trend or support in a down trend in the form of double top or something similar. Once you find this area wait for a convincing break of it following the trend and then enter to scalp part of the move.

This method takes practice, don't expect to be able to pull it off straight away, open a demo account with a broker that offers spreads of a pip or less and trade every day at the same time for at least two months. I guarantee you will see great improvements as you become familiar with the setup and the flow of the market.

By registering on ForexGen, you create your ForexGen profile and you can go ahead and open as many Demo accounts, and live accounts as you need. All accounts can be created online and managed under your ForexGen profile. You can mix between Mini, Standard, Pro, Premium and No Dealing Desk accounts in one.

Trading the Forex Hedging With ForexGen

The Opportunities of Trading the Forex Hedged Grid System

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As a professional online trading service, ForexGen provides several facilities for all kinds of traders

I have seen the hedged grid system been used successfully (and highly unsuccessfully) over the last few years. Unfortunately the failures tend to discourage traders from taking advantage of this great system. I have found that the failures are mainly due to ignorance, impatience and greed (common reasons for trading failure).

In a nutshell the grid system uses the following methodology. You start by buying and selling a currency. When the price moves a predetermined distance (grid leg) you cash in the positive leg, leave the negative leg and buy and sell again. Sooner or later the system goes positive and you would then cash in when it is positive.

Money is made when the price retraces 100%, 50%, 33% at various levels. This starts looking like a strategy that supports the Fibonacci concept. The grid system is also based on the nature of the market to trade sideways 80% of the time and to trend 20% of the time.

The dangers are that what if the price does not retrace and continues to trend. The Grid system can not make money in a trending market — full stop. One has to realize that. You therefore need Strategies to minimize damage during these periods:-

Firstly I have found that the biggest mistake made by traders is that they select a very small grid leg sizes e.g. 20 to 30 pips. This is a recipe for disaster. The trick is to use big leg sizes between 150 and 300 pips. What this does is that it sometimes turns a trending phase into movement in a sideways market. I would typically use 300 pips for the GBPJPY and 150 pips for the EURUSD for instance.

Secondly there is no rule that says that the legs have to be the same size. So I change my leg sizes in trending markets to be even bigger. If I started with 150 for the 1st leg I would go to 200 for the 2nd leg and 250 for the 3rd leg etc. This makes sure that I am carrying less loss making transactions in a trend.

Thirdly — sometimes it is wise to increase the number of lots with the trend compared to the numbers against the trend in a good trend. However be aware of having the same number of sell and buy transactions. All you will have done was lock in your current status in a 100% hedge.

Fourthly — This is the biggest change and most important one that I personally have made in my grid trading strategy. Always cash in all your transactions when your system is positive and when the price reaches the end of one of your grid legs. By cashing in you are reducing the risk of carrying negative lots in a trending market. This also gives you an opportunity to re-assess the market conditions.

Fifthly:- Cash in a start again is always an option. One of my strategies is to cash in all my open positions when the 3rd leg of my grid is reached and start again. Experience has taught me that this is a short term pain that goes away very quickly and is soon forgotten.

Active traders who wish to enjoy the Forex trading advantages can work with the ForexGen account. ForexGen provides leverage up to 500:1 and 100,000 - 10,000 Trade Sizes. Open an account with as little as $250. ForexGen offer swap-free accounts. Swaps will not be applied to ForexGen accounts. ForexGen will not charge a fee of per traded lot round turn.

ForexGen Ultimate Forex Profits

Forex Profits by Buying and Selling at the Same Time

If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX' market, ForexGen has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills.

We will look at how money can be made by breaking a number of trading truths or principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time.

The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let's take some to look at this more closely.

Let's say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.

The grid system requires one to make sure that cash in on any movement in the market. To do this one would again enter into a buy and a sell transaction. Now, for convenience, let's assume that the price moves back to level 100.

The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200.

Now the first sell that remained active has moved from level 200 where it was -100 to level 100 where it is now breaking even.

The 4 transactions added together now magically show a gain:- 1st buy cashed in +100, 2nd sell cashed in +100, 1st sell now breaking even and the 2nd buy is -100. This gives an overall a gain of 100 in total. We can liquidate all the transactions and have some champagne.

There are many, many other market movements that turn this strange "buy and sell at the same time" activity into gains. To get access to real FOREX market you can join ForexGen and get benefits of the services and trading tools plus the free online academy.

ForexGen Easy Ways To Understand Forex Currency

Forex currency is one of the ways from which people can earn money. This is a form of investment where analysis are made online through the aid of the negotiators known as forex brokers. Despite regarding these terms as highly technical, there are easy ways by which you could understand the basics by heart. Before going to a complicated analysis of the foreign exchange scenario, here are some simple ways to look at the system.

If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX' market, ForexGen has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills.

You trade in pairs. Forex currency trading starts with the idea of selling a certain currency in order to buy another one. Usually, this particular need arises when you are traveling in a certain country and you need their particular currency in order to buy goods at their usual price. In order to have the money, you need mediation from forex brokers. This situation may not always be the case as you may trade for other reasons.

You want to earn profit from your own investment. As we all know, a wise investment could lead to better results. One of the most important aspects of the forex currency dealings is to focus on highs and lows by means of forecasting. Your forex brokers will help you look at the scenario by providing you a scale of the probable occurrences in the next couple of days. By relying on these trends, you may assess the time by which you could gain profit.

There are no known commissions from the trade. Even if forex currency will help you gain extra income, do not ever attempt to run after commissions from your forex brokers. They were not established to make you gain an actual percentage of the money you invest. This is not the same as selling a product where you are entitled to gain a certain ratio from the amount you placed in that specified business.

You do not win all of the time. Forex currency is similar to gambling per se. There is always a risk of losing sometimes as winning is not at all times probable. There are days wherein you could attain the peak amount for your money but there are also periods when you should watch out for what is happening. Since the financial factor is involved, it is wise to go to reliable forex brokers who could do the online work for you.

Remember that you are doing it for the nation's economic growth. The forex currency concept is not based plainly on the individual's financial growth but on the country's economic stability as well. The trends and the forecasts sets by the forex brokers are bases for a certain country's ability to prosper as compared to another nation. There are no wars being made between these countries though.

The forex currency is just one of the determinants of a nation's financial steadiness. Once the movement of the graph made by forex brokers remains unchanged, the growth of the economy will surely be secure for the population.

For widening your knowledge and trading experience, you can easily join ForexGen online academy and start develop your own way in handling Forex trade.

ForexGen

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

Market Today with ForexGen

GBP:

Last week saw the Sterling at it's strongest against a weak Dollar, rising to well above the $2 mark after the Bank of England left interest rates on hold. Sterling has now gained more than 4% against the Dollar in the last three weeks.

By contrast, expectations on the extent of monetary easing in the UK have fallen, with markets in early February pricing in as much as 1.25 percentage points of cuts by year-end from the Bank of England compared to less than 75 basis points.

Still a bearish picture at least in the medium term for the UK, the same as the US, and if the US slowdown spills over to the global economy the Sterling will remain vunerable.

Dollar:

The Dollar spent last week going from low to record low as poor economic data and credit market strains hit sentiment. Friday's poor economic figures confirming some traders' fears about the ailing US economy. The currency fell sharply just before the employment figures were released as traders bet on poor numbers and rumors of emergency rate cuts from the Federal Reserve. The Government reported 63,000 jobs were cut, the largest monthly decline since March 2003.

Russell Jones, at RBC Capital Markets, said: "It's been a week of fear and loathing, particularly for credit markets and for the US, and that has driven the currency markets. We're still in the middle of this, we'd still want to short the dollar."

It ended the week 1.1% lower against the Euro at $1.5342 and down 1% against six other major currencies.

Euro:

The euro surged to record highs on Thursday night after the European Central Bank sounded the alarm on eurozone inflation, which made interest rate cuts appear a distant prospect.

Jean-Claude Trichet, ECB president, signalled he could do nothing about the euro's rise after the central bank's governing council left its main interest rate unchanged at 4 per cent, where it has stood since last June.

But he revealed substantial upward revisions to ECB inflation forecasts showing that even next year it was unlikely to achieve its target of an annual rate "below but close" to 2 per cent

Data to look out for this week, UK producer price and house price data, Us retail sales and Euro an Us inflation numbers.

For more information on the markets, or to discuss your requirements please contact us at http://forexgen.com

Forexign Exchange with ForexGen

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.

Foreign Currency with ForexGen

Foreign currency – the smart way to buy

The smartest way to buy foreign currency is to let an expert do it for you.

For those people who don't normally deal in foreign currency, the whole market can be daunting. Apart from the fact that all currencies change their value every day against other currencies, how do you know when it's a good time to buy? More importantly, how can you protect yourself against a sudden change in exchange rates that works against you? Foreign currency becomes a lot less foreign when you let an expert take charge.

Why you may need help

If you're making foreign currency payments on a regular basis – to pay a mortgage on a property overseas, for example, or paying employees in a part of your company that's located outside the UK – you want to do it as economically as possible. You certainly don't want to suffer from significant fluctuations in foreign currency where, for example, your mortgage payment costs you £500 one month and £550 the next. Apart from anything else, it's very difficult to budget and plan ahead when you can't guarantee how much will be leaving your bank account – or indeed coming into it, if the currency is coming into the UK. What a difference it could make if you could buy your currency in advance, so you don't suffer from exchange rate differences, or to put a limit on the rate so that you know you're never going to pay more than a certain amount.

Taking control of your foreign currency

In the same way that you wouldn't handle the legal paperwork for the sale of your home, or give yourself inoculations before you travel, don't handle complicated foreign currency transactions by yourself. Instead, trust an expert to be looking at the foreign currency markets on your behalf, giving you the advice you need to buy and sell your currency at the right time so that your money really is working for you and not against you.

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

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

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

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.

FOREX technical analysis with ForexGen

FOREX analysis is divided into two types: Fundamental and Technical. Fundamental analysis attempts to predict movements in currencies by examining current political and economic events. FOREX technical analysis uses historical economic data to predict movements in the FOREX.

Basic Principles

Technical analysis is based on three assumptions:

1 – Price movements are a result of all market forces combined. Things that can affect currency prices include political events, economic conditions, supply and demand, seasonal variations and weather conditions. The technical analyst, however, is not concerned with the reasons for market movement, but rather, the movements themselves.

2 – Currency prices follow trends. Many market patterns have been recognized as having predictable consequences.

3 – Price movements follow historical trends. FOREX data has been collected for over 100 years and patterns have emerged over time. These patterns are based on human psychology and the way people react to certain sets of circumstances.

Is Technical Analysis Necessary?

Most FOREX day traders rely heavily on technical analysis and may use fundamental analysis to support their trading strategy. A major advantage of technical over fundamental analysis is that it can be applied to many different markets and currencies at the same time. Fundamental analysis requires in-depth knowledge of the political and economic conditions of a certain country; therefore it is less likely that any one trader can do proper fundamental analyses on more than a few countries.

The beginner trader may be put off by the seeming complexity of technical analysis and wonder if it is necessary for FOREX trading. As with any investment, FOREX trading requires a strategy. Although any strategy is possible, technical analysis is a proven method for predicting movements in the FOREX. Does that mean it's a sure thing? Nothing is 100% certain, and currency prices are affected by a variety of forces. This is why many traders use a combination of technical and fundamental analysis to plot their trading strategies.

Availability

ForexGen provides access to a wide variety of charts for technical analysis. Some charting software is available free of charge as well as in-depth professional charts.Charts can be viewed by various time scales and provide detailed information about price movements as well analytical overlays. Charts can be zoomed in to the tick level or zoomed out to see the broad picture over a period of months or years. Charts are updated in real time.

FOREX charts may be available on ForexGen's web site or may be included as part of its trading software.

Before beginning in FOREX trading it is a good idea to become accustomed to market behaviour by following charts for a period of time and studying their movements and learning about trends. Many brokers provide practice accounts that can be used by beginners to place 'paper' bids – no real money is exchanged. These practice accounts familiarize the beginning trader with FOREX charts and market movement while at the same time allowing him to become acquainted with the trading software a particular broker uses.

FOREX fundamental analysis with ForexGen

FOREX traders almost always rely on analysis to make plan their trading strategies. There are two basic types of FOREX analysis – technical and fundamental. This article will look at fundamental analysis and how it used in FOREX trading. FOREX fundamental analysis refers to political and economic conditions

that may affect currency prices. FOREX traders using fundamental analysis rely on news reports to gather information about unemployment rates, economic policies, inflation, and growth rates.

Fundamental analysis is often used to get an overview of currency movements and to provide a broad picture of economic conditions affecting a specific currency. Most traders rely on technical analysis for plotting entry and exit points into the market and supplement their findings with fundamental analysis.

Currency prices on the FOREX are affected by the forces of supply and demand, which in turn are affected by economic conditions. The two most important economic factors affecting supply and demand are interest rates and the strength of the economy. The strength of the economy is affected by the Gross Domestic Product (GDP), foreign investment and trade balance.

Indicators

Various indicators are released by government and academic sources. They are reliable measures of economic health and are followed by all sectors of the investment market. Indicators are usually released on a monthly basis but some are released weekly.

Two of the most important fundamental indicators are interest rates and international trade. Other indicators include the Consumer Price Index (CPI), Durable Goods Orders, Producer Price Index (PPI), Purchasing Manager's Index (PMI), and retail sales.

Interest Rates - can have either a strengthening or weakening effect on a particular currency. On the one hand, high interest rates attract foreign investment which will strengthen the local currency. On the other hand, stock market investors often react to interest rate increases by selling off their holdings in the belief that higher borrowing costs will adversely affect many companies. Stock investors may sell off their holdings causing a downturn in the stock market and the national economy.

Determining which of these two effects will predominate depends on many complex factors, but there is usually a consensus amongst economic observers of how particular interest rate changes will affect the economy and the price of a currency.

International Trade – Trade balance which shows a deficit (more imports than exports) is usually an unfavourable indicator. Deficit trade balances means that money is flowing out of the country to purchase foreign-made goods and this may have a devaluing effect on the currency. Usually, however, market expectations dictate whether a deficit trade balance is unfavourable or not. If a county habitually operates with a deficit trade balance this has already been factored into the price of its currency. Trade deficits will only affect currency prices when they are more than market expectations.

Other indicators include the CPI – a measurement of the cost of living, and the PPI – a measurement of the cost of producing goods. The GDP measures the value of all goods and services within a country, while the M2 Money Supply measures the total amount of all currency.

More than 40 indicators are used in ForexGen. Indicators have strong effects on financial markets so FOREX traders should be aware of them when preparing strategies. Up-to-date information is available on many websites and many FOREX brokers supply this information as part of their trading service.

ForexGen Trading Tools

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.

Reading FOREX quotes with ForexGen

Each world currency is given a three letter code which is used in FOREX quotes. The most common currencies are USD (US dollars), EUR (European euros), GBP (United Kingdom pounds), AUD (Australian dollars), JPY (Japanese yen), CHF (Swiss francs) and CAD (Canadian dollars).

Prices of foreign exchange are indicated by FX quotes in pairs of currencies. The first currency is the 'base' and the second is the 'quote' currency. In this example:

USD/EUR = 0.8320

...the currency pair is US dollars and European euros. The base currency (USD) is always at '1' and the quote currency shows how much it costs to buy one unit of the base currency. In this example, 1 US dollar costs 0.8320 euros.

Conversely...

EUR/USD = 1.1993

...tells us that it costs 1.1993 US dollars to buy 1 euro.

When the price of the quote currency goes up it indicates that the base currency is becoming stronger – one unit of the base currency will buy more of the quote currency. If the quote currency falls, however, the base currency is becoming weaker.

Foreign Exchange quotes are seen in 'bid' and 'ask' prices. Bid is the price that buyers will pay for the base currency (while selling the quote currency), and ask is the price that sellers will sell the base currency (while buying the quote currency).

Symbol	Bid	Ask
USD/CAD	1.2329	1.2379

This chart tells us that we can buy one American dollar for 1.2379 Canadian dollars, or sell one American dollar for 1.2329 Canadian dollars. The most commonly traded currencies pairs are the 'Majors' – GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD.

We often see exchange rates listed in cross currency charts that list many different currencies and their values against each other. An example of such a chart is seen here:

	US $	Ca $	Euro	UK £
US $	1.00000	1.24070	0.83953	0.56807
Ca $	0.80600	1.00000	0.67657	0.45841
Euro	1.19114	1.47805	1.00000	0.67755
UK £	1.7603	2.18147	1.47591	1.00000

In this chart, the currencies listed down the left side of the chart are the base currencies and the currencies at the top are the quote currencies. We can convert the chart above into currency pairs by following the row beside the base currency. Using US dollars as the base currency we get the following currency pairs:

USD/CAD = 1.24070
USD/EUR = 0.83953
USD/GBP = 0.56807

...which tells us that one US dollar is equal to the corresponding value of the quote currency. To find the opposite pair e.g. CAD/USD follow the Canadian dollar row to the US dollar column - CAD/USD = 0.80600 (one Canadian dollar is worth 0.80600 US dollars).

There is no standard for cross-currency charts – some have the base currency on the top and some have it on the side. How to tell which is which? You need to know at least one pair of currencies and which one of the pair is more valuable.

Currency prices are determined by a number of factors, the most important of which are economic and political conditions in the issuing country. Political stability, inflation, and interest rates are all factored into the price of any currency. In addition, governments can try to control the price of their currency by either flooding the market (to lower the price) or buying extensively (to raise the price).

Because of the immense volume of FOREX, however, it is impossible for one force to control the market for any length of time. Market forces will prevail in the long run, making FOREX one of the most open and fair investment opportunities available.