The Internet and Global Forex Trading | ForexGen

New traders can find the net as a helpful tool in doing their trades online. There are many different Forex trading programs available in different websites. All you have to do is to choose one website that would suit your trading needs.Many Forex traders believe that the FX market is the best place to earn money. If you know how the market works and with a little startup capital as investment, you can actually make big profits. And you don't have to worry about your investment's safety. Online Forex trading is quite safe, and besides, the fact remains that the FX market cannot be manipulated even by powerful individuals because it is the biggest financial market in the whole world.It doesn't matter whether you have an office job, or if you're staying at home. With the Internet, you can actually do the trade at home, in the office, or any time you choose. The FX market is open twenty-four hours each day, and you can take part in the trade six days a week. The opportunities in Forex trading are immense.Almost any business venture requires you to do some marketing, promotion, and/or selling. And not only that, you would need a huge amount of capital. But with Forex trading, you will need only a reasonable amount to open an account. As you go through the course of currency trading, you won't be spending a lot of money as well.The price ranges from three hundred dollars to over two thousand dollars in order to open an account. Instructions are usually provided to help you in doing your trade. You don't have to keep an eye on your computer monitor all the time. You can log off after you've done your trade for the day. And you're free to check what happened during the trading day in the FX market. You need to check every now and then though, but you can do it during your free time, or after office hours.Global Forex trading allows you to enter buy trades with specified prices. Once the selling price of the currency rises to your desired price, it will be sold automatically for you. Even when you're not watching, you are actually making money.Having a permanent job is not enough, especially to most people who have a lot of daily expenses. Forex trading allows you to earn extra money, even big money, during your free time.The system of Forex trading is not that difficult to understand. But it would not be a wise move to put your hard earned money in the Forex trade without proper knowledge. Practice first; you can take advantage of free trials offered by various websites. This will help you a lot in learning the trade processes and to learn the skills needed in Forex trading.You're free to choose your investment amount. The computer acts like an ATM machine; you don't have any superiors, you are completely responsible for all your actions. So if you want to make money the easiest and fastest way, the FX market is the best place to explore.The most important thing is to educate yourself about the trade, and who knows, you might discover the secret to Forex trading and earn thousands of money. The Internet has brought about global Forex trading, and not all people are aware of this. You're quite lucky to enter the FX market, so take advantage of all the opportunities that will come your way. Learn, and learn even more; that is probably the most effective way to do Forex trading. Learn from past mistakes, and make profitable decisions.

Main Forex indicators | ForexGen

APICS Survey - The APICS survey provides detailed information of the manufacturing sector. This survey is less well known than the ISM, but can also suggest trends in production. The diffusion index does not move in tandem with the ISM index each month, but sometimes the two do move in the same direction. Since manufacturing is a major sector of economy, investors can get a feel for the general economic backdrop for several investments. These surveys also play an important role in learning Forex trading.Business Inventories - The degree of inventories in relation to sales is an important signal of the near-term direction of production activity. Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. Growing inventories can be an indication of business optimism that sales will be growing in the coming months. By looking at the proportion of inventories to sales, investors can see whether production demands will expand or contract in the near future. The business inventory data provide a valuable forward-looking tool for traversing the economy and it is greatly used while making Forex trading strategies.Chain Stores Sales - It is monthly sales volumes from department, chain, discount and apparel stores. Sales are reported by the individual retailers. Chain store sales are an indicator of retail sales and consumer spending results. Consumer spending accounts for two-thirds of the economy, so if you know what consumers are up to, you will have a pretty good grip on where the economy is headed. Sales are reported as a change from the same month a year ago. It is significant to know how strong sales actually were a year ago to make sense of this year's sales. In addition, sales are normally reported for "comparable stores" in case of company mergers.Construction Spending - Data are available in nominal and real (inflation-adjusted) dollars. Because of their Forex trading strategies, businesses only put money into construction of new factories or offices when they are sure that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home. That's why construction spending is a good indicator of the economy's momentum.Consumer Confidence - It is study of consumer attitudes concerning both the present position as well as expectations regarding economic conditions conducted by The Conference Board. The level of consumer confidence is directly related to the intensity of consumer spending. Consumer spending accounts for two-thirds of the economy, so the markets are always dying to know what consumers are up to and how they might act in the near future. The more confident consumers are about the economy and their own personal finances, the more likely they are to spend. With this in mind, it's easy to see how this index of consumer attitudes gives insight to the way of the economy. Changes in consumer confidence and retail sales don't move in tandem month by month.Consumer Price Index (CPI) - It is measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly changes in the CPI represent the inflation rate. The CPI is the most followed indicator of inflation in the United States; some Forex training institutes also keeps record of it for training purpose. Inflation is a general increase in the cost of goods and services. The relationship between inflation and interest rates is the key to understanding how data like the CPI influence the markets. By tracking the trends in inflation, whether high or low, ascending or descending, investors can anticipate how different types of investments will perform.Current account - It is a measure of the country's international trade balance in goods, services and unilateral transfers. The level of the current account, as well as the trends in exports and imports, are followed as indicators of trends in foreign trade. U.S. trade with foreign countries hold significant clues to economic trends here and abroad. According to Forex training experts this data can directly affect all the financial markets, and particularly the foreign exchange value of the dollar.

How To Win Short Term In Forex Trading | ForexGen

Short term Forex trading can get pretty scary sometimes and good traders are always looking for a way to reduce the risk and increase the profits.Do you have a short term Forex trading style? If so, you need to be aware every day of the data releases, prominent speakers, and other potential big market moving events in the day ahead. Do not forget that the economic data calendar for the Forex market is all encompassing. On any given day it's possible for items coming from several different countries to have an impact on price action. Consider the following example; this is an indicator that moves the market.CCI - Consumer Confidence Indexthe Conference Board; Last Tuesday of each month, 10:00am EST, covers current month's data. The CCI is a survey based on a sample of 5,000 U.S. households and is considered one of the most accurate indicators of confidence. The idea behind consumer confidence is that when the economy warrants more jobs, increased wages, and lower interest rates, it increases our confidence and spending power. The respondents answer questions about their income, the market condition as they see it, and the chances to see increase in their income. Confidence is looked at closely by the Federal Reserve when determining interest rates. It is considered to be a big market mover as private consumption is two thirds of the American economy. If you are looking for an effective Forex currency trading system, then using this report can make it even better.Obviously, long-term traders don't have to be keenly aware of the upcoming data and influential speakers. However, they should, be alert to the happenings in markets which influence Forex. Those include interest rates, commodities, and perhaps stocks at times.

ForexGen Explains How to win

The way to enjoy currency trading success is not to attempt to predict - but to act on the reality of the price change.Let me give you an example that will make this clearer.Let's say you see a currency coming into test major support and you think it's going to hold.You do not simply execute a trading signal into the level of support - you wait.You wait for support to hold and prices to turn away from the level - supported by price momentum.Using Momentum if you don't know anything about momentum indicators, then make them an essential part of your Forex education.These momentum oscillators will help you confirm changes in price momentum and allow you to see visually when price is strengthening away from support. You may say I will miss the turn and sure you will - but you don't know it's going to turn in advance!There is an old saying:"A bottom picker becomes a cotton picker"And its right, try and predict market lows or highs and you will end up losing your trading account equity.Great momentum indicators to use are: The Stochastic, RSI, ADX etc - we don't have time to cover them here, just look them up in our other articles.They are excellent indicators and will get the odds in your favor.This is what Forex trading is a game of odds - not certainties.Don't let that worry you though if you can trade the odds you can make a lot of money.If You Want To WinTrading is not about trying to be clever and catching the exact turn, no one can do that - so don't try.Trading has one aim making money and don't worry if you could catch just 60% of all the major trends you would be very rich.

Forex Scalping For Beginners | ForexGen

Forex scalping is one of the most popular ways for new traders to get into Forex trading and offers the appeal of regular profits and low risk. In this article we are going to cover all the facts related to Forex scalping for beginners, so let's get started.Forex scalping in essence, looks to trade within daily time frames making small regular profits, using tight stops to generate big profits overtime - the big problem is it has never worked and never will.Why?Because the logic it is based on is simply incorrect and if you read on, we will tell you why and show you the evidence, which shows why one of the best ways to lose money in Forex trading is Forex scalping.Let’s take a look at the market first and how they move.We have trillions of dollars traded daily, by millions of different traders and to say that you can say what this vast mass of traders is going to do in such a short time frame, as a few hours is laughable.Fact: All short term volatility is random.This means that prices can and do go anywhere in a day – support and resistance levels are not valid, so it doesn’t matter how good your technical indicators are they will fail in this random environment.I have seen successful track records though!Sure you have – and their sold by vendors with a vested interest.There are loads of them and they are all designed to bring Forex scalping to beginners - for a few hundred bucks you get rich, sure you do.Take a reality check!These vendors make money selling Forex scalping systems, NOT trading them - their far too clever for that.What you will see is an unbelievable track record that shows great profits with little or no drawdown and common sense tells you that if it’s too good to be true and it most are!Many traders however fall for the ploy and buy the system, lose and wonder why.If they were to take a closer look at the Forex scaling track records presented, they will see the words “hindsight” or “simulation” written all over the track record as a disclaimer.What does this mean?Well – the track record is done in hindsight and simulated, knowing the closing prices!How hard is that?My eight year old daughter could do that and so could anyone who can read and write and you can to – these track records are totally meaningless and really not worth the paper their written on.You can of course find a real-time track record but you will spend a long time in your search – I have spent 25 years trying, so if you find one let me know.The fact is Forex scalping for beginners takes advantage of naive and gullible investors who think winning is easy and they don’t stop to think about the reasons these systems cannot and never will workIf You Want to WinYou need to trade the odds and that means using time frames that allow you to get the odds in your favor and this means trading longer term.If you are a beginner at Forex trading and want to get a Forex education that will help you win look at Forex swing trading or long term trend following here you work with valid data and can get the odds on your side.

Follow Up ForexGen Steps For Better Trading - Part1

Contrarian Signs in Dollar Sentiment - Forex Trading

The market rewards those on the side of surprise. Traders, particularly in Forex, try to avoid surprises. This is not in itself surprising because joining the crowd, is a defensive action that occurs everywhere in nature. A swarm of bees, a flock of birds, and a herd of sheep, provide individual members protection by being part of the larger group. As we enter the last month of 2005 the Forex crowd around the US Dollar is large- but is it stable? Perhaps it's time to look beyond the comfort of the crowd.
Here are the contrarian signs of the beginning of the end of the US Dollar bull crowd.
1) Gold patterns - Gold is reaching new highs and while profit taking will occur what is significant is not the price point but how it is getting there. In the current scenario Gold's move is not a flight to safety from the dollar, but one that reflects investment demand for alternative assets and a reallocation away from currencies. The precious metals have been attracting significant fund and commodity-related purchases. Buying Gold is a way of shorting currencies. The following Gold vs. Yen chart demonstrates this inverse relationship.
The current bull sentiment for Gold may very well be a fundamental source of non-dollar sentiment. It may be the early sign of a non-dollar assets becoming more attractive.
2) US Dollar Index``. The USDX, after reaching highs of this year, just over 92, is now retracing toward its 50 day moving average. A direct probe of this Moving Average may be a precursor to a further retracement of the dollar.
3) Price Sensitivity to Weak Dollar News
If the USD bull is getting tired, the first sign we will see is when economic news comes out and the immediate reaction to that news. On Monday we saw the dollar decline to a 4 week low on news that existing home sales fell 2.7% to a slower-than-expected annual rate of 7.09 million in October. The reaction was a flow of funds away from the dollar to move the EURUSD nearly 200 pips. Of course, much of this move has been given back. This is showing increase in the volatility of sentiment focused on these news releases and that the crowd around the dollar bull is becoming looser.
4) Wall Street Journal vs. Financial Times
In the past week we have had two contrasting editorials. The Wall Street Journal printed an editorial "The Go-Go Greenback" in honor of the bullish dollar. The editorial remarks that the "US prospers with a dollar that has surprised the markets with its relative strength". But the Financial Times, just yesterday entitled its editorial- Entering the neutral interest rate zone. "It is not the end, but it is the beginning of the end. The latest minutes show that the Federal Reserve has entered what it expects to be the final phase of the interest rate tightening cycle that began in June 2004."
There are elements of value in each editorial. But they contrast each other in another respect. The Wall Street Journal's editorial is looking backward, while the FT is looking ahead. Yes, it has been a great year for the dollar. It can be argued, however, whether the markets were "surprised". Basic trend analysis of USDX confirmed in April that the dollar was in a Bullish sentiment. After the April FOMC rate increase, the USDX bounced off its 50 day Moving Average and proceeded to form this great bull trend that defined this year. But of greater interest to us now is why this editorial appears at all. Perhaps it's an indicator that the dollar is peaking when its praises can be sung on the editorial pages. The very fact that this editorial appeared may be a sign that the Wall Street Journal may be too late to the party.
5) Thirty Minute Ranges are tradable.
What should the Forex Trader conclude? How can we tactically benefit from the current turbulence on dollar sentiment? During periods of transition, where fundamental forces such as interest rate differentials are changing, shorter time frames to judge sentiment provide adequate opportunities to trade. The Forex Trader should be ready to take on moments of opportunity. In the Forex markets the 30 min patterns are demonstrating wider ranges and trading opportunities. It is worth looking at as a trading platform.