Day Trading Indicators and Indicator Trading

Did you start day trading after buying a book on technical analysis,

and getting a charting program - probably a free one that you found online - in order to save money? While reading your book you learned about trading indicators which could ’predict’ price movement, and what do you know, the ’best’ indicators were actually included in your free charting program - let the games begin.

Now that you have all the day trading tools that are necessary, the book for education AND the free charting program with those ’best’ day trading indicators, you now need a day trading plan so you can decide which ones of those ’magic’ day trading indicators you are supposed to use. This really is a great book, besides telling you how to day trade using indicators to ’predict’ price - it also said that you need a trading plan to day trade.
So what should this plan be? The book told you about trend following using an indicator called macd, and it also told you how it was possible to pick the top or bottoms using an indicator called stochastic; my guess is that you picked the stochastic indicator to start your day trading - this must be the ’best of the best’ since this indicator was going to ensure you of entering your trades with the ’best’ price. Amazing, simply amazing how easy this day trading stuff really is. In fact, why even bother taking the trades, each time your indicators give a signal - just call up your broker and tell him to stick $100 in your account.

My book was Technical Analysis of the Futures Markets. My charting program was TradeStation with an eSignal fm receiver; that was the one that if you hung the antennae wires just right, and you put enough foil on the tips, you might even get quotes. I had sold a business before I started trading so I did have some capital - isn’t that how everyone gets into trading, you either sell a business or you lose your job? My indicator was the macd as I had decided that I was going to be a ’trend follower’ instead of a ’top-bottom picker’. I also decided that I was going to be ’extra’ clever, if one indicator was good than two indicators must be better, so I added a 20 period moving average. My first trade was a winner, then after many months of extensive therapy, I was finally able to forget the next twelve months - ahhh the memories ƒ؛
Learning To Day Trading - The Learning Progression

Beginning today trade, or learning to day trade, as an indicator trader is very typical. This is also logical when you consider - HOW are you supposed to initially learn how to trade? Trading indicators are available to anyone who has a charting program, and simply using line crosses, or histogram color changes, provide ’easy’ signals to understand. If you will also take the time to learn the arithmetic behind your indicators, as well as learning what each indicator is specifically intended to do, not only is this a logical way to begin, it is also a good ’step’ in your learning progression - understanding the WHAT you are doing, instead of attempting to create ’canned’ indicator only trading systems, without any regard as to WHY you are trading this way.
[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.

What makes a good Trading Strategy?

Any trader who is more experienced will say a strategy should also include money management, risk control,

perhaps stop losses and of course, an exit point. They might also say that you must let your profits run and cut your losses short. A well-read trader will also tell you that your strategy should fit with your trading personality.

BUT there is one other vital ingredient that many traders forget - and that is to fully understand the "personality" of what you trade. Some traders specialise in say, gold or Brent crude or currencies or they might specialise in a particular index such as the FTSE 100 or the Dow but many traders choose to trade shares. Indeed some traders dabble in a bit of everything. I think this is the area that causes many traders to fail or at least not reach their full potential
Superficially, many charts look the same. I bet if you had not seen the charts for some time and someone where to show you a chart of Brent Crude over 6 months and then a chart of Barclays PLC over the same 6 months you would be hard pushed to say which was which purely on the look of the chart.

However, I bet that if you found a trader who trades ONLY Barclays day in and day out and also found someone who trades ONLY Brent Crude day in and day out, both of them would easily identify which was which. WHY?
Because every share, index or commodity has it’s own "personality".
Some will be volatile intra-day, some will follow their sector or the main index (market followers), some will do their own thing, some will spike up and down regularly, some will stop at key moving averages and some will just plough through. Some will move by 5% on average before they retrace and some by 2%. Some will gap up or down regularly, some will not. You get the idea!

Therefore, no matter how good you are at analysing indicators, moving averages, trends and patterns, the same strategy WILL NOT work for everything. I would go so far as to say that a strategy that works well for Bovis Homes, for example, is likely NOT to work for BT Group - they have very different "personalities".

[ForexGen White Labels]

Forex White Label partnership allows the trader a quick access to the online foreign currency exchange market.

[ForexGen] provides two types of trading White Label partnerships, a limited and a full solution. ForexGen different types of forex White Label partners are able to access ForexGen's trading platform entirely branded under each partner's unique company image and name. We provide a customizable online trading platform for the different types of the two White Label solutions.

The Perfect Forex Trading System

Most Forex trading systems are made off technical indicators.

But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.

There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as "the MA crossover made the price go up," but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.
Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn’t want to go up. Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.

Don’t get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.

ForexGen Scalping Enabled Account

Trade and scalp the market [ForexGen] has the pleasure to announce the availability of both Dealing Desk and No Dealing Desk Platforms. No Dealing option provide traders with direct access to the best bid/ask prices through multiple bank access. No re-quotes & No dealer confirmation is the main characteristic of the no dealing option made specifically for “scalpers” and active FX professionals. Absolute freedom to trade during news and economic events. The no dealing desk option allows traders to place entry orders inside the spread! Unlike competing FX firms, [ForexGen offers] traders all the advantage of a “no dealing desk” option.

Advantages of No Dealing Desk Option

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Are you a technician or fundamentalist

There's a tendency to pigeonhole traders into two distinct schools:

fundamental or technical. In fact, most smart traders favor a blended approach versus being a purist of either type.
Fundamentalists need to keep an eye on signals derived from price charts, while few technicians can afford to completely ignore impending economic data, critical political decisions or pressing societal issues that influence price action.
Forecasting economic conditions using models
Fundamental analysis is very effective at forecasting economic conditions, but not necessarily exact market prices. Studying GDP forecasts or employment reports can give you a fairly clear picture of an economy's health and the forces at work behind it. But you still need a method to translate that into specific trade entry and exit points.
The bridge between fundamental data and a specific trading strategy usually comes from a trader model. These models use current and historical empirical data to estimate future prices and translate those into specific trades.
Beware of "analysis paralysis"
Forecasting models are both art and science, with so many different approaches that traders can get overloaded. It can be tough to decide when you know enough to pull the trigger on a trade with confidence.
Many traders switch to technical analysis at this point to test their hunches and see when price patterns suggest an entry.


[ForexGen Customer & Trading Support]

ForexGen Customer Service seeks to achieve the highest level of customer satisfaction.

[ForexGen online trading services] are available 24 hours a day from Sunday at 6:00pm EST to Friday at 2:00pm EST to support and offer the help needed by all ForexGen's clients through answering any questions they may have.
ForexGen provides full time assistances to support clients during the usage of [ForexGen platform], whenever our clients face any problems during downloading or installing the platform ForexGen experienced stuff will help to overcome it.

ForexGen provides clients with full scale demonstrations and help for the technical issues.

Dealing Rooms.

ForexGen dealing desk representatives are available during trading hours - 24/5 from Sunday 6:00pm EST to Friday at 2:00pm EST.

You are encouraged to contact the dealing room by phone ONLY in these situations:

* If you are not able to access the internet.
* Failing to receive a confirmation on an online order.
* Failing to connect to ForexGen server.

Introduction to Fundamental Analysis

Fundamental analysis studies the core underlying elements that influence the economy of a particular entity,

like a stock or currency. It attempts to predict price action and trends by analyzing economic indicators, government policy, societal and other factors within a business cycle framework.

If you think of the markets as a big clock, fundamentals are the gears and springs that move the hands around the face. Anyone can tell you what time it is now, but the fundamentalist knows about the inner workings that move the clock's hands towards times (or prices) in the future.
Look for fundamental drivers first
The fundamentals include everything that makes a country and its currency tick. From interest rates and central bank policy to natural disasters, the fundamentals are a dynamic mix of distinct plans, erratic behaviors and unforeseen events.

That said, not every development will move a country's currency. Try to start by identifying the most influential contributors to this mix versus following every fundamental out there.
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
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You Should Follow General Economic News And Learn Econ Basics

As I mentioned before, investing requires time and effort. Part of the regular process should be reading economic news and following general trends.

Not only will you find great insights which influence your trading strategies, but you’ll also learn to get a “feel” for the market and you’ll be able to spot trends that may help or hurt your investments.

There is a lot of news out there and sifting through it can be daunting. So do a little research and find a site or newspaper that you feel comfortable with and trust. On this site we’ll constantly add education-focused articles that also touch on the condition of the markets and the economy, so you’ll want to make sure you visit daily.


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Some Books: Red Book

Published every Tuesday, this report presents the detail sales of some 30 US stores produce the previous week and compared to the previous month. It is always a forecast which counts for the request of the households but a rather volatile measurement taking into consideration the more or less significant months for the detail business.

ForexGen 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 including the following information:
- Full name: - Phone number

Also provide us with the following identification document:
" 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 [demo account] login information which will be used in the trading contest.

By the end of each contest:

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The contest starts on the first Sunday of each month at 10 pm GMT and ends on the last Friday of that month at 10 pm GMT.

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Choosing a Broker

There are many forex brokers to choose from, just as in any other market. Here are some things to look for:Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. Forex brokers don't charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena.
Bottom line: Lower spreads save you money!

Quality Institution - Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a forex brokerage on its website or on the website of its parent company.
Bottom line: Make sure your broker is backed by a reliable institution

[ForexGen Live Account]

The live/real account is provided to those clients who may have some experience in the online trading.[Opening an Account Online]

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ForexGen.com 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 provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

Ameriabank (Armenia) Forecasts USD Exchange Fluctuations Within 10%

YEREVAN, October 20. /ARKA/. The Armenian Ameriabank forecasts USD exchange fluctuations within 10%.

At a press conference at the Novoti international press center, Sergey Shevchenko, Director of the Trade Operation Department, Ameriabank, reported that the bank does not expect any serious exchange fluctuations, as the Central Bank of Armenia (CBA) is efficiently managing the market, and no serious fluctuations have been recorded over the last year.
“During the following year the cost of one US dollar will not fall below 300 AMD, and the upper level will not exceed 320 AMD, as the Central Bank is rather active on the market,” Shevchenko said.
According to the CBA-prepared Review of quarterly polls of commercial banks and credit institutions, commercial banks forecast a stable average USD exchange rate for this December – 299.7 AMD/$1.

The banks also forecast an average USD exchange rate of 304.22 AMD/$1 for next March.


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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.
How to Get Started?

People are introduced to the exciting world of foreign exchange in many ways: friends, current events, newspapers, television, and many others. For those of you who are new to forex, the following guidelines cover the basics of currency trading.

also do you Know ForexGen Lowest spreads in the market with 0-1 pip spread in 10 pairs, no commissions, no swaps and instant account Activation.

No Christmas Cheer As Recession Gathers Steam

WASHINGTON (Reuters) - Existing home sales fell by a record amount last month as the recession picked up pace although a collapse in gasoline prices gave consumer sentiment a rare lift, data on Tuesday showed.

"The bottom line: Bah humbug. Recession, recession, recession," said Jennifer Lee, an economist with BMO Capital Markets in Toronto.

The solitary good news came from the Reuters/University of Michigan Surveys of Consumers, which rose to 60.1 in December from November's reading of 55.3 due to lower energy and retail prices after stores made radical markdowns to tempt shoppers.

This trend was expected to continue, with the report noting more consumers expect price declines than in any other survey since 1960, pointing toward deflation fears that have prompted the Federal Reserve to cut interest rates to almost zero.
The U.S. recession began last December and data from the Commerce Department confirmed analyst expectations that output shrank at an annual rate of 0.5 percent in the third quarter as consumption and investment slumped.

Conditions are expected to get much worse before they get better, with the economy predicted to shrink by as much as 6 percent in the fourth quarter and keep declining for the next six months before a tepid recovery takes hold later in 2009.

"We are in the midst of the worst recession in the post-war period, even factoring in a massive stimulus program," said Nariman Behravesh, chief economist at IHS Global Insight.
President-elect Barack Obama is expected to unleash a massive government spending program when he takes office next month to reinforce the powerful policy boost from the Fed, which has also pumped over $1 trillion into credit markets.

The Richmond Federal Reserve's manufacturing survey echoed the gloom, falling to -55 in December from -38 the previous month. Its services sector survey declined 8 points to -30.
Housing is at the heart of the problem and existing home sales plunged a record 8.6 percent in November to a 4.49 million-unit annual rate, while a separate new homes sales report showed they retreated at a slower 2.9 percent pace.

The median existing home price fell 13.2 percent on an annual basis, down for a fifth straight month to $181,300.
It was the largest drop since the current data series began in 1968 and probably the largest since the Great Depression, said Lawrence Yun, the chief economist for the National Association of Realtors.
Economists say falling house prices will improve affordability and help work off the overhang of unsold homes accumulated since the property market nosedived last year.
Inventories of new homes declined 7 percent to 374,000 in November but actually increased 1.4 percent for existing single family homes, to 3.550 million.
"Despite the overall softening in sales, there has been a solid trend of rising activity in California, Nevada, Arizona, and Florida, in areas where bargain hunters are taking advantage of substantially discounted prices," said Michelle Girard, analyst at RBS Greenwich Capital.

Separate weekly reports on chain store sales offered conflicting signs on holiday shopping activity.
The International Council of Shopping Centers and Goldman Sachs said their chain store sales index rose 2.6 percent in the week ended December 20, although the year-on-year decline deepened to 0.6 percent.
In contrast, the Johnson Redbook sales index showed a month-to-date decline of 1.1 percent, with sales for the December 20 week 1 percent below their year-ago level.

[ForexGen Promotions]

As ForexGen believes that its success depends totally on its client's satisfaction and success, ForexGen is sharing its growth and new site release with wonderful promotion packages.

*[Claim Your Bonus]
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What Does Forex Hedge Mean?

A transaction implemented by a forex trader to protect an existing or anticipated position from an unwanted move in exchange rates. By using a forex hedge properly, a trader who is long a foreign currency pair can be protected from downside risk, while the trader who is short a foreign currency pair can protect against upside risk.

Methods of hedging
The primary methods of hedging currency trades for the retail forex trader are through spot contracts and foreign currency options. Spot contracts are the run-of-the-mill trades made by retail forex traders. Because spot contracts have a very short-term delivery date (two days), they are not the most effective currency hedging vehicle. In fact, regular spot contracts are usually the reason why a hedge is needed.

Foreign currency options are one of the most popular methods of currency hedging. As with options on other types of securities, foreign currency options give the purchaser the right, but not the obligation, to buy or sell the currency pair at a particular exchange rate at some time in the future. Regular options strategies can be employed, such as long straddles, long strangles, and bull or bear spreads, to limit the loss potential of a given trade.
Not all retail forex brokers allow for hedging within their platforms. Be sure to research the broker you use before beginning to trade.

[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.

Forex Trading As a Home Business

Whether are learning to drive a car or trade in the Forex market you benefit from the experience and knowledge of others. None of us ever really believe that we are an expert at something as soon as we try it for the first time. For this reason, unless you are already maintaining a healthy bank balance trading Forex then you can benefit from a tutorial in Forex trading.

A tutorial in currency trading will help to teach you the basics, and even if you have been trading currencies for a while then you may still learn something new. You see, the Forex market is pretty complex and therefore it can take years to master it. For this reason taking the time to learn as much as possible will save you money in the long run.

Not too long ago it was almost impossible to find anyone offering any kind of training or tutoring in Forex. This was mainly because trading was only open to large corporations and businesses. The situation is completely different nowadays as the Internet boom has opened the doors to individual traders and that has led to a massive increase in the number of courses and tutorials available.
Training can be done online or in a classroom depending on your location and preference. There are so many ¡®learn at home¡¯ courses available now that if you think that is the way to go then all you have to do is pick one. Classroom learning is a little different since you may find yourself having to travel fair distances to get to your nearest course.

Another advantage of an online tutorial is that not only do you get to learn from the comfort of your own home or office but you can also take things at your own pace. The downside however is that there is no teacher for the one to one discussions and explanation (the DVDs or online videos are your teacher) that you may sometime need.
Some online currency trading tutorials come with a money-back guarantee that is if you do not like their course you can return it for a refund. However, you should look out for those courses which claim to be able to guarantee you a profit. These kinds of claims are hard to achieve and should be treated with sketiscm as some courses are no more than scams.

[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.

How To Lose Everything - The Worst Forex Trading Strategy Ever That You Might Be Using

You may be wondering, why would David Jenyns write about the worst Forex trading strategy around?
There are a couple of reasons:

First, to warn you about the worst Forex trading strategy, because you really don't want to end up using this system.
Second, because once you know the worst possible Forex trading strategy, the one that is designed to maximize your losses over the long run, then you can reverse it to craft a strategy which does the exact opposite.
With what you learn from the worst Forex trading strategy, you will be able to create a system that will produce some tremendous long-term gains.

[ForexGen Services]

Client Services

• Customer Support
• Trading Support

ForexGen Partnership

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 large income sharing plan.

[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.

A trading system (TS)

A trading system (TS) is a set of instructions which advise opening or closing trading positions based on the results of technical analysis. A trading system allows to exclude randomness in the trading process. Strict adherence to the system permits to rule out the emotional factor in the trade. For this reason, one must follow all recommendations of the system strictly even if for all that a potentially profitable position will not be opened.

The first thing you need to do when creating a trading system is to select time periods, or working timeframes, you will work with. A lot of restrictions in this respect come from the starting deposit and principles of capital management. Long-term periods are accompanied by lesser "financial noise" than shorter periods. Technical analysis performed for long term periods is more accurate and provides a lesser number of false incitements. Long-term periods are preferable in terms of successful working, but, however, they require a larger starting deposit. Shorter timeframes are characterized by greater noise, but, hence, the technical analysis is less accurate and gives out more false signals.

[FOREXGEN Scalping Enabled Account]

Trade and scalp the market ForexGen has the pleasure to announce the availability of both Dealing Desk and No Dealing Desk Platforms. No Dealing option provide traders with direct access to the best bid/ask prices through multiple bank access.

No re-quotes & No dealer confirmation is the main characteristic of the no dealing option made specifically for “scalpers” and active FX professionals. Absolute freedom to trade during news and economic events. The no dealing desk option allows traders to place entry orders inside the spread! Unlike competing FX firms, ForexGen offers traders all the advantage of a “no dealing desk” option.

Survey says: U.S. and U.K. FX volume dropped in the fall

Currency trading volumes in the two biggest foreign exchange centers appear to have dropped from the record levels recorded earlier in the year, according to two reports.
The triennial survey of the market conducted by the Bank for International Settlements (BIS) showed record average daily volumes of $1.9 trillion through April. But surveys of the U.K. and U.S.

markets by the Bank of England and the New York Federal Reserve show volumes in those two centers dropped to a combined $917 billion a day for traditional foreign exchange products
from $1,196 billion in April. The two centers account for almost half of all daily trading activity in the foreign exchange markets.
The two aforementioned reports were the first of what will become regular six-monthly surveys of FX market activity. The Bank of England and the New York Fed participate in the BIS’s
survey, but the FX committees of both said they felt the market would benefit from reporting of activity levels more than once every three years. “Our goal in launching this survey is to help market participants identify emerging trends in foreign exchange,” says Mark Snyder, chair of the New York Fed’s committee and head of foreign exchange at State Street bank.
He says more frequent reporting should help market participants manage risk in the fast-moving market. Both committees cautioned that their reports were not directly comparable with the BIS survey because of slight differences in methodology. The Bank of England said the BIS habit of
reporting trade locations based on the sales desk, rather than where the trade was conducted, could have underreported trading in London, the biggest center of activity. Many banks have sales teams across the continent but maintain one main trading floor, often in London. However,
market participants believe trading volumes might have surged since the surveys were taken.
EBS, the biggest inter-bank spot dealing platform, reported its busiest day in 11 years, worth $203 billion, in November. The platform also reported its busiest-ever week in January with an average $162 billion traded daily.

[About FOREXGEN]

ForexGen.com 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 provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.

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ForexGen | How do you hedge in the forex market?

Hedging is, in the simplest sense, any strategy designed to offset or reduce the risk of price fluctuations for an asset or investment. When a person or company makes an investment (like when they buy shares of a company's stock), they're betting that the price of that investments will move in a certain direction. As with any bet, there's always the risk of losing if the price moves in the opposite direction; it's this risk that investors use hedging to help offset. Creating a hedge requires the purchase of a second asset with a negative correlation to the first; this can be direct and simple (in the case of a long put to hedging against a long stock position, for example) or indirect and complex (statistical arbitrage between historically correlated pairs, for example).
A basic example of a hedge is buying a futures contract for a commodity, such as oil.

For a company that uses oil in its production process, an oil futures contract locks in a price until a given date, protecting the company from the risk that the price will rise even higher by that time. In this case, the company is said to be hedging against rising oil prices. Hedges can, however, fail; for example, if oil prices don't rise by as much as the company expected, it will still have to buy the oil at the agreed-upon price.

Hedging With Options
Options are quickly becoming the hedging instrument of choice for investors all over the world, particularly in hedging stock portfolios. This popularity is due to the versatility of returns offered by option strategies, ranging from synthetic closings, complete downside protection, complete delta-neutral hedging and multi-directional profiting. For example, a portfolio of stocks can be hedged in such a way during that movements in the stock prices do not effect overall portfolio value, rather increases in volatility leads to an increase in portfolio value. This is known as a delta neutral (vega positive) hedging.
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ForexGen | Hedging One Forex Pair with Another

While the Dollar rally may ultimately prove beneficial to US consumers (due to cheaper imports), it is certainly not helping US-based multinational corporations. Companies that earn a significant portion of their revenue abroad would normally be considered stable investments during times of economic uncertainty, since their exposure to individual economies is minimal. In the context of the current crisis, however, such companies have struggled; since they must report earnings in terms of USD, a strong Dollar is equivalent to lower earnings on foreign sales. Some companies have turned to hedging their exposure, while others have opted to either ride out the fluctuations and/or hope that they cancel each other out, banking on the notion that forex is ultimately a zero-sum game. Dow Jones reports:

To be sure, such global currency fluctuations are hard to manage and even those companies that do have hedges in place may only be able to limit and not completely offset the pressures of a strengthening greenback and oscillating exchange rates.
December 19, 2007
The hedging topic often comes up in forex forums. One recent example was a trader who likes to trade GBP/JPY in what is basically a carry strategy. In order to protect his downside, he hedges his position with a short in CHF/JPY. The two are fairly highly correlated, so that would seem to be a good hedge. In theory, it is. There’s a bit of a snag in it all, though.
Firstly, when you hedge you need to match position values. Since a lot of GBP/JPY has a higher value than CHF/JPY - remember you are buying or selling the first (base) currency - you need to actually sell more than a single lot of CHF/JPY to accomplish a full value hedge. The GBP/CHF exchange rate is currently about 2.3, meaning you would need to sell about 2.3 lots of CHF/JPY for each GBP/JPY you go long.

Here’s the catch, though. If you do that full value hedge, you actually end up creating a completely different exposure in your account. When you match a long GBP/JPY with an equal value of CHF/JPY you end up completely cancelling out your JPY exposure by going long and short equal amounts of that currency. That leaves you with a long GBP/CHF position, which obviously has completely different price action characteristics.
Of course you could then short GBP/CHF to totally nullify your risk all together. There’s not much point of that, though. In doing so you would lose your ability to gain on any type of price movement, would end up with a net loss because of the spread doing all those trades, and would probably be in a negative carry position (or at best neutral).
This is why it’s important to understand the implications to your net overall exposure when you trade multiple forex pairs, for hedging or otherwise.

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ForexGen | Forex Hedging Between Reducing Your Financial Risk And An Insurance Plan

For those who are not familiar with the Forex market, the word “hedging” could mean absolutely nothing. However, those who are regular traders know that there are many ways to use this term in trading. Most of the time when you hear this phrase it means that you are trying to reduce your risk in trading. It is something that everyone who plans to invest should know about. It is a technique that can protect your investments to some degree.

While hedging is a popular trading term, it is also one that seems a little mysterious. It is much like an insurance plan. When you hedge, you insure yourself in case a negative event may occur. This does not mean that when a negative event occurs you will come out of it completely unaffected. It only means that if you properly hedge yourself, you won’t experience a huge impact. Think of it like your auto insurance. You purchase it in case something bad happens. It does not prevent bad things from happening, but if they do, you are able to recover a lot better than if you were uninsured.

Anyone who is involved in trading can learn to hedge. From huge corporations to small individual investors, hedging is something that is widely practiced. The manner in which they do this involves using market instruments to offset the risk of any negative movement in price. The easiest way to do this is to hedge an investment with another investment. For example, the way most people would deal with this is to invest in two different things with negative correlations. This is still costly to some people; however, the protection you get from doing this is well worth the cost most of the time. When you begin about hedging, you start to understand why not many people completely know what it is all about. The techniques used to hedge are done by using derivatives. These are complicated instruments of finance and most often only used by seasoned investors.
When you decide to hedge, you must remember that it comes with a cost. You should always be sure that the benefits you get from a hedge should be more than enough to make it worth your while. You should make sure the expense is justified. If it is not, then you should not hedge. The goal of hedging is not to make money. You will not make large gains by hedging yourself. You have to take some risks in order to gain. Hedging is intended to be used to protect your losses. The loss cannot be avoided, but the hedge can offer a little comfort. However, even if nothing negative happens, you will still have to pay for the hedge. Unlike insurance, you are never compensated for your hedge. Things can go wrong with hedging and it may not always protect you as you think it will.

Keep in mind that most investors never hedge in their entire trading careers. Short-term fluctuation is something that the majority of investors do not worry with. Therefore, hedging can be pointless. Even if you choose not to hedge however, learning about the technique is a great way to understand the market a bit more. You will see large corporations and other large traders use this and may be confused at why they are acting this way. When you know more about hedging you can fully understand their strategies.
Whether you decide to use hedging to your advantage or not, you will benefit from learning more about it. You can use it like an insurance policy when trading. You should remember however that hedging can be costly. Always check to make sure the costs of hedging will not run against any profits you may or may not make. Be sure those costs are realistic and that your need for hedging is realistic as well. You will be able to use hedging to help cut your potential losses, however hedging will never guard against the negatives altogether. Learning about it will give you a better understanding at how large traders work the system however, which can in turn make you a better player in the trading game.
Remember that hedging should be left to the Pros of the industry unless you are playing the forex market as a hobby and don't have a lot invested in it.

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1. Lowest spreads in the market with 0-1 pips 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.

ForexGen | The concept of forex hedging is simple enough

Market mavens estimate that most currency pairs move within defined ranges for approximately 80% of the time. When a breakout from such a range occurs, it tends to be sudden and sharp, the sort a trader wants to catch; however, for those who cannot sit and watch the market constantly, these can also be the moves that are easiest to miss, especially if one is asleep when the active London market opens at 8:00 AM GMT or one has misjudged the release of a particularly meaningful fundamental announcement.

It’s easy enough to set a market order at a pre-determined entry point and walk away from the computer; however, the value of that technique depends entirely upon the accuracy of one’s estimate of the market’s future direction, which of course in turn depends upon one’s proficiency in technical analysis and predicting a nation’s economic data prior to its release—not the easiest of tasks in recent months, as a well-known bank’s complete miscall of the RBNZ policy statement, released 5 June 2008, illustrates all too well.

Rather than depend upon a market forecast, no matter how carefully prepared, forex hedging traders prefer to hedge their bets and place two entry orders, one above and one below a currency pair’s trading range, and catch the market’s move whichever direction it goes.
Also, ensure that one’s broker offers the feature known as “order cancels order,” meaning that when one order is triggered, the other is automatically nullified. That way, one doesn’t have a loose trade floating about, waiting to be activated when it’s least desired, and often when one is not watching

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Free Cash Bonus
Mini Account 10% of your deposit maximum $250
Standard Account 10% of your deposit maximum $500

ForexGen | No Stop hedged Forex Grid trading system:

The no stop hedged forex grid trading system is an investment technique which creates favorable dollar cost averaging on all transactions entered into. For this reason the technique is too much of a paradigm shift for most conventional traders who like charts, support and resistance and indicators.
It is forex hedging , it is not a trading technique. It has however become very popular as a trading technique because of the short term gains that can be made. The No Stop system trades without stops. No stop loss orders are used at all except for when a group of transactions have a positive result and we want to liquidate the entire group of transactions at a net gain. Because the No Stop system cashes in its transactions regularly it becomes a trend following No Stop system too. There is no need for charts when using this No Stop system as we use predetermined price levels to cash in transactions positively (The No Stop system loves price spikes).

Transactions can or should be slow at a rate of about 3 to 4 a week. As price levels are determined well in advance orders can be placed well in advance so the No Stop system takes very little supervision. The technique is highly systematic and can easy be converted into an automatic trading system or expert adviser very easily.
The No Stop system is always in a sell and a buy at the same time and therefore can cash in on any move the market makes. Being in a sell and a buy at the same time also created a hedge. Predetermined cash in levels create a grid of price levels there positive transactions will be cashed in continuously until the group of transactions are profitable.

In simple terms you will enter the market at a particular level with an active bay and a sell. You would have predetermined levels at which you would cash in positive transactions. For instance one could decide to cash in on every 100pip (grid gap) move made in the market. When the price moves 100 pips you would cash in your positive transaction and then enter into another buy and sell transaction at that point. This process will continue until the total for the group of transaction is positive and then you would liquidate. You would then start again – as simple as that. No need for charts. Patience is the biggest virtue required.

Money is made when the price revisits some of the cash in levels over and over and over again (which it does).
In the above example should the price return to the starting level (after moving 100 pips) the group of 4 transactions in total will be positive and you would then cash in the unwanted transactions, bank your profits and start again.
The big danger of this No Stop system is strong trends with no or very few retracements. You will lose money in trends. There are however specific techniques to manage and contain these losses.
The biggest one is to start with a big grid gap. What is a trend on a 5 minute chart could be a small spike on a daily or weekly chart. Grid gaps of between 150 pips and 300 pips have been found to work well.
One could also vary the grid sizes relative to the trend to reduce the number of unhedged transaction. For example have grid gaps of 100, 200, 300 etc.
The other way is to vary the number of lots used when entering into the buy and sell transactions at a particular cash in point to ensure balanced hedging.

Trends tend to scare people away from this technique but if one views this as an investment technique and not a trading technique the trends could have a reduced impact on the annual return on investment. The market only trends 20% of the time any way. Talking about return on investment some current trading groups are showing returns of between 200% p.a. and 1000% p.a. on current investment levels. There are many trading records are available to back this up. The longer you trade this No Stop system the lower your risk and the better your return. That said, you can lose more than just your boots (your whole trading account) if you treat this No Stop system with disrespect.
Success factors for this No Stop system are: - Selecting appropriate grid sizes, currency pairs, lot sizes, cash in times and an investment mentality. All very easy, if you have done it for a few years.
This No Stop system is not for everybody however, and is not the best Forex hedging system since sliced bread, but is does very nicely for some traders, thank you very much. It is important to know about this system as using its principles could help your conventional trading. For freely available information on this No Stop system search the net for no stop forex trading

ForexGen 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.