WELCOME TO FOREXGEN

The Ultimate Trader Champion

2009-12-16T08:10:00.000-08:00

Win Cash Prizes

ForexGen has the pleasure to announce the launching of the ultimate trader champion on the first of every month.

Interested clients who wish to participate in this event shall send an e-mail request on contest@forexgen.com including the following information:

Full name
Phone number

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 ForexGen demo account login information which will be used in the trading contest.

This Forex contest for the current month will starts on Sunday 20-12-2009 at 10 pm GMT and ends on Thursday 31-12-2009 at 10 pm GMT.

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

ForexGen is Giving You Cash This Christmas

2009-12-15T04:16:00.000-08:00

There aren’t many Forex promotions like this one, but then again there aren’t many Forex Brokers like this one.

Get a 25% cash back straight into your trading account, on any deposit you make up to $100,000, during the month of December OR get free rebates also during the month of December and next 3 months that you will get $ 1 for each closed mini lot and $ 10 for each closed standard lot.

ForexGen knows what traders are looking for, Simplicity, Security and Safety. That’s why the majority of our traders use our services again and again.

We offer 24/7 hour support and a personal account manager to all of our traders.
We offer training and education resources.
We send our traders daily Market Reviews by email each day.
We send the latest trading signals by email.
And we don’t charge fees or commission.
Free hedging activities.
Free Signals, Charts and news.

Register with ForexGen to start trading Forex and we’ll look after the rest.

For more information about Christmas at ForexGen email us at Operations@forexgen.com

Forex vs Stock Market

2009-12-15T04:12:00.000-08:00

Two of the main differences between (and some would say advantages over) the forex market compared to the stock market are:

1. Trading hours. The forex market is open 24 hours a day. Trading is done over three continents, allowing a trader to trade continuously and to react immediately to events and new developments. The market opens on Sunday evening and closes Friday night.

2. Commissions. Electronic trading and competition have brought about a sizeable reduction in the bid-offer spread (the equivalent of commissions). The spread covers the risk of the market maker. The spread for the majors remain very low, but can increase as the liquidity of a specific currency drops.

Despite recent reductions of commissions through online stock brokers, the Forex market is considered, by some, to have the lowest commissions relative to trade size when compared to other financial markets. This is also in part due to the 100:1 leverage offered by most trading houses. A client with a $10,000 deposit can leverage this to $1,000,000. Some electronic communication network brokerages have introduced a per trade commision alongside a narrow pip spread.

Many retail trading houses would suggest that the large size of the market makes it impossible for a speculator to affect the market. This is not quite the truth - the stakes are higher, larger quantities of money are involved, and the bigger banks spend a lot of time and effort trying to manipulate the market. Governments have been known to step in and affect prices.

Unlike the stock market, where retail clients (individuals) have access to almost exactly the same prices as all other participants, the Forex market has several different levels of access and therefore commission costs or spreads. At the top are the largest investment banking firms such as Citi and Deutsche Bank, where the spreads or the difference between bid and ask prices are tiny. These spreads are a closely guarded secret, not normally known outside the inner circles of international finance.

TYPES OF SCALPING

2009-12-15T04:10:00.000-08:00

There are three methods of scalping the Forex market which I will be teaching in this article:

You could apply the EMA 4/12/63 to 15 minutes chart of your trading platform and scalp with the strategy. Alternatively, apply the one I will be sharing basically for this technique.

1. Time-sensitive trades: This comes in 2 forms: Firstly, in opening range breakouts, where a quick scalp is taken minutes before the open, in the direction of any market thrust. I revealed an important secret in the previous edition of SDE on the best trading time for the EMA 4/12/63. Meanwhile, if care is not taken, the bull back preceding the breakout of the 7:45am Nigeria time might strike your stop loss. But you can perfectly study the market; and scalp to make profits before the main breakout. And I will advise you always use your Bollinger Bands, preferably on a separate 15mins chart.
Secondly, trading to capitalize on the regular market turnaround time of the New York opening session. Infact, scalping is the best strategy to apply because something must happen. Keep your eyes also on 15 to 30 minutes to the FA release. I bet you that you would have made your target before the news. Then if the news is worth trading, trade and make more profits. Always tie this law on your neck and do not let it depart from you "make 20 or 30pips per day and every other pips shall be added unto thee"

2. Countertrend trades: Scalping when the market is silent or consolidating during the trading day. It could be the Asia session too.

3. Trend continuation trades: These methods focus on entering the market in the direction of a trend AFTER the trend has gone underway. They are also classified as retracement trades.
One of the most liquid, active and electronically accessible market is Online Forex Trading and I feel the scalping method represents the best known chances for picking consistent profits as a trader/scalper.

Oh! Getting interesting? Then I expect you to contribute, so that I can show you more ways of scalping the market soon.

Scalping is a very good trading strategy but I will like to encourage you that this strategy is not for all traders because of the emotion and risk involved. It is an advanced trading method that needs to be mastered before committing your live account. The scalping trading strategy that I will be sharing involves simple indicators; MACD and MOVING AVARAGE(s).

The MACD is an acronym for Moving Average Convergence/Divergence. It is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD default is the difference between a 26-day and 12-day exponential moving average. A day exponential moving average, called the signal or trigger line is plotted on top of the MACD to show buy/sell opportunities.

MACD's can be used as an oscillator, does that sound too technical? No! Oscillators indicates that the asset will revert back to its mean valuation OR a Momentum indicator; indicates that the trend is strong and will continue. Parameters: The MACD line is the difference between the 12 and 26 day EMA.

The signal line is the 9 day EMA of the MACD. Visually, the MACD consists of three elements, like the MACD, it is a line plotted on the bottom of the chart. The MACD line. This is simply the difference between the 12 and 26 day EMA. It is a line plotted on the chart. The Histogram. The MACD histogram is simply a bar chart located at the bottom/top of the chart, where the MACD and signal lines are plotted. The histogram is simply a visual representation of the difference between the MACD and the signal line. The "zero" point of the histogram - meaning the point where the bars cross above and below - is referred to as the centerline.

[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.

Scalping The Forex Market For Mega Profits

2009-12-15T04:04:00.000-08:00

What is Scalping? Many traders don't really understand that simple word.

Some even pronounced it wrongly, and if you don't understand the meaning now, you can not benefit from the mega returns that the strategy is generating in the world's largest financial market.
Scalping is a focused technique that involves making a minuscule trade to generate profit within a short period of time. This method of trading the FX market is of high probability trades with extremely small risk stops and predefined profit objectives, it is also a means of taking a million trades to make a million dollars.

There are different types of traders; "Position Traders" "Intraday Traders" and "Scalpers" A position trader could engage in trades that are intended to last for multiple days or months with huge pips target of hundreds to thousands. An Intraday trade could typically engages in trades that might last for less than a day aiming for targets of 20 to 100pips while A Scalper engages in trades that might last for few minutes and the minimum target could be 5+ pips. Pick your calculator now and calculate 5pips on a 2.00 standard lots of 5 trades per day for 20 trading days (5pips x 5 trades x 20 dollars x 20 trading days = $10,000 monthly) If all the scalping techniques are adhered to. Are you saying it's not possible! Just demo trade this for a month and see what I am saying.

A scalper normally trade higher lots size or volume depending on your account size and risk acceptance. For the fact that this technique requires a maximum Stop Loss of 20pips, you must also maintain a good equity management principle. If you could just sincerely follow the rules that I will be teaching you on this technique, you could rake in more profits to your bank account without stress compared to day or position traders.

Let me sound this warning that if your account can not accommodate the risk involved scalping with higher lots or contract value, please don't trade higher lots. Simple! Because scalping is more emotional and advanced in nature in the aspect of making a very quick decision and trade execution. Don't trade without setting your stop loss when scalping. Trading without stop loss could wipe off your account with this strategy. P-L-E-A-S-E, just follow the simple trading rules that I will be sharing with you.
Scalpers often engage in multiple trades per day. Some traders execute several trades and make profits with ease. Don't worry, I will teach you the technical know-how of scalping the market. Scalps are executed in the direction of the current trend of the Forex market. You can't run away from the fact that the "trend is your friend" if you don't know the trend of the market, don't place any order.

You could also take larger profits as this lesson is getting more technical by applying trailing stop. What is Trailing Stop? Stop Loss is intended for reducing losses where the symbol or currency pair price moves in an unprofitable direction. If the position becomes profitable, stop loss can be manually shifted to a break-even level. To automate this process, Trailing Stop was created. This tool is especially useful when price changes strongly in the same direction or when it is impossible to watch the market continuously for some reason.

The beauty of scalping is that, it allows traders to trade even when other techniques would make you sit with your PC for long without trading. Scalping is best used in conjunction with or as a supplement to other trading techniques - so keep trading your normal strategy that you are used to and add scalping to your trading toolbox.

[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.

Foreign Exchange Is The Largest Of The Global Financial Markets

2009-12-15T03:54:00.000-08:00

It's about exchanging one countries currency for another. Trillions of dollars are traded each and every day. In the early days it was used by large banks, multinational corporations and extremely wealthy currency speculators. The influx of online brokerages has created a large retail foreign exchange market. Banks and large multinational corporations generally trade foreign exchange transactions simply as a function of doing international business or to hedge themselves to protect their base currency from devaluation.

Forex speculators exploit fluctuations in the foreign exchange market for profit. Currency trading happens throughout the day, as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends. Forex markets provides strategies and instruments to the investor and corporate companies that look to have better value from their international risk exposures. Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house.

Forex is all about making money with foreign currencies, buying at a lower price and gaining profit by selling at a higher price. Discipline is the key to most business ventures. Foreign currency trading is no different. Currency trading is a venture that you need good information about. A lot of traders make it hard on themselves by not getting the correct information. Currency trading can easily done, but 90 percent of traders lose money. Why do they lose at this? When the system you are working with becomes to complicated you lose valuable time getting bogged down with unnecessary information. So how can it be done successfully? A proven simple system or platform plus discipline will give you trading success. Keep the system simple. A complicated system is hard to understand and tends to be stressful. With a simple system a person is able to understand better and in turn trade with discipline. Take a bit of time to research a few systems. It will be beneficial to you.

You need your strategy mapped out. This is very important to any business venture. It really doesn't have to be mind boggling. Find the simple platform for you or find a person who knows this market. Keep in mind success comes with tight money management. Do you want success in forex trading? Understanding is needed and belief that you can be a success is extremely important. You can be a winner in the field of currency trading. Use the tools available to you. Have fun and make some good money..

[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.

What makes this contest unique?

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

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

What IS Forex & Who Drives Forex Market ?

2009-12-15T03:49:00.000-08:00

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $2.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

What makes the market move?

Among the main factors influencing currency exchange rates there are balance of mutual payments, economic condition, forecasts based on technical analysis graphs, as well as political and psychological factors.

The movement of capital between countries can be considered as the main factor determining the current state of the market. Besides, such factors as inflation and discount rates can also considerably influence currency exchange rates. At the same time, there is no doubt that another important fact is that there is always a ceratin state behind each currency.

There are two ways states can control the market. The first one is just control and the second one is the so-called intervention. Currency control prevents citizens from doing anything that can have a negative influence on the exchange rate (for example, transferring money abroad). In the first place, intervention means changing the discount rate, which makes the currency more or less attractive for foreigners. And second, it means selling or buying the currency in order to increase or reduce its cost on the market.

Online Forex is The Fastest Growing Forex Investment Option

2009-12-15T03:45:00.000-08:00

Since the first internet forex trade was back in 1994, the forex market has grown a long with the total growth of the internet.

for more than a decade this growth has rapidly advanced the forex market into becoming the biggest market in the world,bigger than the stock exchange and the futures market put together,and this escalating growth has been maintained for more than a decade,in a progressive and accumulative scale.

Welcome To Forex Market

ForexGen Trading Platform

2009-12-15T03:41:00.000-08:00

Trading Platform Features, Tools & resources to aid successful trading Windows-based click and deal trading platform providing trading executions typically under a second Real time automated inter-bank dealing prices Real-time margining, position keeping and mini statements detailing unrealized & realized profit & loss summaries Charts and news Free demo
Market, limit, stop and OCO orders available Squawk box facilities - live audio rates of major

currency pairs direct to your PC

Wide range of trading tools

Live audio rates of major currency pairs direct to your PC

Live chat interaction with dealers

Free real time charting package

Real-time news & analysis of data pre and post release

Regular economic diaries, updates and FX commentaries

Telephone trading available

For more details Click Here

ForexGen Broker Enterprise Accounts…

2009-12-15T03:35:00.000-08:00

ForexGen Enterprise Accounts The actual candlestick shape in reference to the candlesticks so Open Demo Account around it will tell you a lot about the price movement and will greatly aid your analysis.

Depending on the price spread various patterns will be formed ForexGen News Center by the candlesticks. Many of the shapes have some rather exotic names, but once you learn the patterns they are easy to pick out and analyze.

ForexGen Services Price charts are not usually used by themselves to get the full affect you need to supplement them with some technical indicators. , ForexGen Institutional Tools Technical indicators With ForexGen Services are normally grouped into some pretty broad categories.

ForexGen Customer Service Some of the more common ones used to monitor and track the market movement are: trend indicators, strength indicators, volatility indicators, and cycle indicators.

Why Purchasing on The Margin is a Must in The Forex Market ?

2009-12-15T03:31:00.000-08:00

In the beginning, only banks and hedge funds could trade in the forex market. This was due to high amounts of money the banks were trading in. No average investor could afford it. Only lately have investors been able to participate in the forex market. This is due to them purchasing currencies on the margin.

One lot in the forex market is $100,000. There is a high amount of money exchanging hands in the forex market. This is due to the many valuable trait’s the forex market has to offer. For example, the market is open 24 hours a day, 5 days a week; there are many forms to reduce risk in the market (stops); it is fairly easy to come in and out of the market because it is highly liquid. Lastly, the market is very volatile.

Since average investors have only recently taken to trading in the forex market, transactions made through brokers have changed. Original lots were $100,000 each. Now there are mini lots. A mini lot is $10,000. If an investor wanted to trade in the forex market through a broker, they would be required to give the broker a collateral. This would be $1,000 or 1% of the lot. Brokers require the $1,000 if there is a loss of capital. The broker will then put the $1,000 in the investors account just in case there is any loss of capital.

When average investors decided to trade in the forex market, they tend to take out loans from banks. With any loan, there is always interest. Thus, on top of the risk of losing money through the forex market, investors also have to add the payment of interest into the mix. However, as an average investor, it becomes necessary to take out loans when participating in the forex market. This is referred to as leveraged financing. Leveraged financing has allowed to forex market to expand to new heights.

Losses are inevitable in the forex market. Especially since it is so volatile. Brokers shut down their accounts as soon as the margin is consumed. However, it is recommended that stops are used on all orders placed in the forex market. This is to limit the losses incurred by investors. When stops are not place on orders, the investor can lose up to $100,000. In other words, they can lose the size of their lot.

Thus, the importance of stops being placed on orders can not be stressed upon more. It reduces the amount an investor can lose in any of their orders in the forex market. Stops limit loses and continues to benefit the investor by granting them to gain profits at the same time. As well as that, margins are a must for investors in the forex market.

This post has shown the importance of margins and leveraging relating to the forex market for average investors. As well as that, it has explained the importance of placing stops on orders.

Swiss Franc Heads Toward Support As Labor Market Weakens

2009-01-11T20:07:00.000-08:00

Swiss annual inflation dropped to 0.7% from 1.5% in December on the back of cheaper oil, while unemployment rose to its highest in almost 2 years as the drop in global demand for Swiss goods forced more firms to cut jobs. The labor market is expected to weaken further as slumping demand will lead to more cost cutting.

Swiss annual inflation dropped to 0.7% from 1.5% in December on the back of cheaper oil, while unemployment rose to its highest in almost 2 years as the drop in global demand for Swiss goods forced more firms to cut jobs. The labor market is expected to weaken further as slumping demand will lead to more cost cutting.

The dour economic data added to views that the Swiss National Bank will slash interest rates further and might even turn to unconventional measures to support the economy. Indeed, with the current benchmark rate at 0.50% there is little room for the MPC to operate. We may see the central bank employ a (ZIRP) zero interest rate policy or they could follow the BoJ’s lead and ease by a smaller amount.

[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.

What makes this contest unique?

All prizes are CASH prizes with no restrictions on withdrawing the prize money! How Do I Enter?
You don't have to pay any fee to enter this contest, all [ForexGen] mini Accounts with a balance of "$1000" and a default leverage of 1:200 are entitled to participate in this contest upon their account holder request by sending an e-mail request on live.contest@forexgen.com

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

Euro's Fundamental Path Will Be Defined By Critical ECB Rate Decision

2009-01-11T20:02:00.000-08:00

In the forthcoming week, the euro may once again find a dominant, fundamental trend from its mature and wide range against the benchmark US dollar. That is because buried amid second-tier economic indicators we will receive the European Central Bank’s (ECB) first rate decision for the new year. While the policy authority’s announcements have been top economic fodder for the months, this one is particularly important as it will reveal whether President Jean-Claude Trichet and his fellow monetary policy makers will eventually take the region’s target rate to near-zero levels like its US and Japanese counterparts.

In the forthcoming week, the euro may once again find a dominant, fundamental trend from its mature and wide range against the benchmark US dollar. That is because buried amid second-tier economic indicators we will receive the European Central Bank’s (ECB) first rate decision for the new year. While the policy authority’s announcements have been top economic fodder for the months, this one is particularly important as it will reveal whether President Jean-Claude Trichet and his fellow monetary policy makers will eventually take the region’s target rate to near-zero levels like its US and Japanese counterparts.

So, how can we gather this from one decision when the main rate is still at 2.50 percent? Because this decision will define the pace the ECB is willing to keep as they come dangerously close to the ever-dreaded zero interest rate policy (ZIRP). Looking to economists forecasts, a heavy consensus favors a 50 basis point cut to 2.00 percent. This would follow on the heels of the Bank of England’s own half a percent reduction this past week (though this was a significant deceleration from the clip the British policy authority had previous been running at). Interestingly enough, the market is prepared for something similar. Herein lies the potential for the euro’s strength to come under serious scrutiny. Overnight index swaps show market participants are pricing in a little more than 75 basis points worth of easing over the coming year. This would mean that the ECB would only lower rates once more and by a conservative quarter-percentage point.

[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.

British Pound Could Gain as Traders Pare Back Rate Cut Expectations

2009-01-11T19:56:00.000-08:00

Despite dour economic data, the British Pound has room to rise in the near term. . Considering the calendar is not set to offer anything blatantly worse than what has already been priced into the exchange rate, a moderation in rate cut expectations gives sterling some room for a corrective upswing.

The Trade Balance report headlines the economic calendar in the week ahead, with expectations calling for the deficit to narrow in November to -£7.5 billion. The rapid depreciation of the British Pound is likely to be a key contributor, making UK products substantially cheaper for overseas buyers and boosting exports. Indeed, Sterling lost 3.26% against the Euro and 2.87% against the US Dollar in November. Cumulatively, the US and the Euro Zone account for well over 60% of all UK cross-border sales. Meanwhile, imports have likely declined as consumers cut back spending on both domestic and foreign-made products.

Last week, we saw consumer confidence fall to a record low as economic growth turned sluggish, sending unemployment higher all the while tumbling home values and stock prices produced large negative wealth effects. These very trends are up to be on display again both with December’s BRC Retail Sales Monitor and RICS House Price Balance survey, with the latter expected to show that 74% of those polled reported falling property values.

[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.

[ForexGen] serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

Dollar Mixed on Job News

2009-01-11T19:49:00.000-08:00

The dollar was mixed against major currencies Friday, as investors took the news of the high number of U.S. December job losses in stride.

The greenback was boosted on the slightly better-than-expected news of 524,0000 jobs lost in December, according to John Kicklighter. That's because some speculators may have been expecting a higher figure, as was the case in November when job losses exceeded many forecasts, he said.
The lower than expected losses sparked a slight dollar rally, but the movement was due "more on relief and repositioning than any belief that the worst is behind [us]," according to a research note from Sacha Tihanyi, currency strategist at Scotia Capital.

The Labor Department also reported that the unemployment rate rose to 7.2% last month from 6.7% in November - its highest rate since January 1993.
The pound had been gaining against the dollar for five consecutive days, but was largely unchanged late Friday, ended slightly lower against the dollar.
The British pound fell 0.25% against the dollar to $1.5178 from $1.5197 late Thursday.

[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:

1. All participants that manages to open at least 20 lots will be awarded a Live Account with $50 credit 2. All participants that manages to open at least 20 lots and keep their demo account initial balance will be awarded a Live Account with $100 credit 3. The highest 5 accounts with the highest profits (including the floating P/L) will be awarded a Live Account with $250 credit.

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.

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

Japanese Yen Forecast Remains Bullish Amid Financial Market Distress

2009-01-11T19:43:00.000-08:00

An empty week of economic data left the Japanese Yen to trade purely off of shifts in risk sentiment, and a downturn in risky asset classes pushed the currency higher against the US dollar and other major counterparts.

An empty week of economic data left the Japanese Yen to trade purely off of shifts in risk sentiment, and a downturn in risky asset classes pushed the currency higher against the US dollar and other major counterparts. Indeed, the USD/JPY lost almost all of its recent gains, and Japanese Yen momentum continues to favor USD/JPY weakness. A shift in sentiment led our DailyFX+ trading signals to buy the Yen aggressively through end-of-week trade, and the move proved prescient ahead of Friday’s substantive tumbles in Japanese Yen crosses.

Outlook for the highly risk-sensitive Japanese Yen will subsequently depend on the trajectory in global risky asset classes, and overall momentum favors further losses. An absolutely dismal US Non Farm Payrolls report on Friday reminded traders of the severity of ongoing economic difficulties in the world’s largest economy, and few express hopes that conditions will post significant improvement through the foreseeable future. As such, we would argue that “de-leveraging” trades, or assets that benefit from underperformance in equity markets, are likely to continue to gain. Disappointing outlook for Japanese economic conditions notwithstanding, the Japanese Yen will likely benefit from these dynamics.

[Partnership With ForexGen]

ForexGen offers three types of business partnerships:

*Introducing Broker
*White label
*Money Manager

ForexGen Introducing Brokers, White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a huge income sharing plan.

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

Base Currency and Variable Currency

2009-01-06T17:47:00.000-08:00

When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell euro. Or buy euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening in relation to the other.

The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Singapore dollars, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD 1,000,000. When closing the position, the opposite trade is done, again USD 1,000,000. The profit or loss will be apparent in the change of the amount of SGD credited and debited for the two transactions. In other words, your profit or loss will be denominated in SGD, which is known as the price currency. As part of our service, Saxo Bank will automatically exchange your profits and losses into your base currency if you require this.
Dealing Spread, but No Commissions

When trading foreign exchange, you are quoted a dealing spread offering you a buying and a selling level for your trade. Once you accept the offered price and receive confirmation from our dealers, the trade is done. There is no need to call an exchange floor. There are no other time-consuming delays. This is possible due to live streaming prices, which are also a great advantage in times of fast-moving markets: You can see where the market is trading and you know whether your orders are filled or not.

The dealing spread is typically 3-5 points in normal market conditions. This means that you can sell US dollars against the euro at 1.7780 and buy at 1.7785. There are no further costs, commissions or exchange fees.

This ensures that you can get in and out of your trades at very low slippage and many traders are therefore active intra-day traders, given that a typical day in USDEUR presents price swings of 150-200 points.

[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.

What makes this contest unique?

All prizes are CASH prizes with no restrictions on withdrawing the prize money! How Do I Enter?
You don't have to pay any fee to enter this contest, all [ForexGen] mini Accounts with a balance of "$1000" and a default leverage of 1:200 are entitled to participate in this contest upon their account holder request by sending an e-mail request on live.contest@forexgen.com

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

Buying New Highs and Selling New Lows

2009-01-06T17:42:00.000-08:00

One of the oldest and most powerful money management strategies used to enter into and exit out of trades is using new highs and new lows over a certain period of time.An example would be to sell a new 10-day low to enter into the trade and use a new 10-day high as your trailing protective stop.

This allows one to trade on the daily chart without having to follow the market throughout day. To set your trailing stop, you just have to check the daily chart after the 5PM Eastern close to see what the highest high of the 10 previous days was. If it was different from the previous day’s stop level, you just move your stop, if not, you leave it alone.

You can do this until the market comes back up to stop you out, meaning you are trying to get the most out of the move. The key is to only trade in the direction of the trend as that is where you will find some of the biggest moves.
much as a new 40-day high or low to enter into or exit out of a trade. You can also use this approach on an intraday chart, although I would recommend using higher values.

Perhaps a 20-period high or low on the 4-hour or hourly chart would be more appropriate than a 10-period high or low. You have to check to make sure. But it is easy to backtest this approach as it is easy to identify new highs and lows….either they are or they aren’t. The key to trading on the intraday charts is once again to only trade in the direction of the daily trend.

While this money management approach may not be perfect, it is better than most money management strategies used in the markets and is relatively easy to use. That makes it a valuable tool worth looking into by traders who currently struggle with how to get into and out of a trade.

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What Are The Best Times To Trade For Individual Currency Pairs?

2009-01-06T17:37:00.000-08:00

The foreign exchange market operates 24 hours a day and as a result it is impossible for a trader to track every single market movement and make an immediate response at all times. Timing is everything in currency trading. In order to devise an effective and time-efficient investment strategy, it is important to note the amount of market activity around the clock in order to maximize the number of trading opportunities during a trader’s own market hours.

Besides liquidity, a currency pair’s trading range is also heavily dependent on geographical location and macroeconomic factors. Knowing what time of day a currency pair has the widest or narrowest trading range will undoubtedly help traders improve their investment utility due to better capital allocation. This chapter outlines the typical trading activity of major currency pairs in different time zones to see when they are the most volatile.
For example : Asian Session (Tokyo): 7 P.m.–4 A.m. EST
FX trading in Asia is conducted in major regional financial hubs; during the Asian trading session, Tokyo takes the largest market share, followed by Hong Kong and Singapore. Despite the flagging influence of the Japanese central bank on the FX market, Tokyo remains one of the most important Dealing centers in Asia. It is the first major Asian market to open, and many large participants often use the trade momentum there as the benchmark to gauge market dynamics as well as to devise their trading strategies. Trading in Tokyo can be thin from time to time; but large investment banks and hedge funds are known to try to use the Asian session to run important stop and option barrier levels. Figure 5.1 provides a ranking of the different currency pairs and their ranges during the Asian trading session.

For the more risk-tolerant traders, USD/JPY, GBP/CHF, and GBP/JPY are good picks because their broad ranges provide short-term traders with lucrative profit potentials, averaging 90 pips. Foreign investment banks and institutional investors, which hold mostly dollar-dominated assets, generate a significant amount of USD/JPY transactions when they enter the Japanese equity and bond markets. Japan’s central bank, with more than $800 billion of U.S. Treasury securities, also plays an influential role in affecting the supply and demand of USD/JPY through its open market operations. Last but not least, large Japanese exporters are known to use the Tokyo trading hours to repatriate their foreign earnings, heightening the fluctuation of the currency pair. GBP/CHF and GBP/JPY remain highly volatile as central bankers and large players start to scale themselves into positions in anticipation of the opening of the European session.

[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.

ForexGen serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

The Advantages Of Trading Alone

2009-01-06T17:33:00.000-08:00

People sometimes experiment with the idea to trade with other people. It might work, but for me, it did not. I trade alone.

The advantages of trading alone are:

You are free to make your own decisions without having to find a way to explain the rationale of your decisions to anybody else. Your time and effort can be focussed on what the market is doing and how you react to it, instead of worrying about the psychological and emotional dynamics of a trading group.

You are free to experiment, based on the knowledge you gain from your experiences and your self-education, without having to asking others to allocate a certain portion of the trading funds to let you conduct your experiments.

No one can blame you for their failures. No time is wasted on justifying your actions or feeling guilty about the impact of your trading blunders on someone else's financial situation.
You alone are responsible and accountable for your own success or failure. You cannot shift the blame to anybody else. It could be disappointing to some knowing that they cannot blame anyone else if they fail. For others, it is very empowering to know that they, and they alone, are in charge of their own destiny.

Personally, I believe that a person should trade alone first before he or she decides to trade with other people. This allows the individual to develop his own philosophy and his own understanding about himself and the market. I understand, however, that not everybody can trade alone because it requires a set of beliefs and values to be part of the trader's character. Not all people are created with the same set of characteristics. Not everyone can operate under the solitude of the journey. For example, there are people who need social contact more than others. Individuals who are social by nature and those who solve problems by talking to other people, may have difficulty undertaking a solitary endeavor.

[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:

1. All participants that manages to open at least 20 lots will be awarded a Live Account with $50 credit 2. All participants that manages to open at least 20 lots and keep their demo account initial balance will be awarded a Live Account with $100 credit 3. The highest 5 accounts with the highest profits (including the floating P/L) will be awarded a Live Account with $250 credit.

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.

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

How Does This Affect Your Forex Trading Account?

2009-01-06T17:29:00.000-08:00

If you are long the currency bearing the higher interest rate then you should earn interest, automatically credited to your trading account. Conversely, if you are short the currency bearing the higher interest rate then you should experience a small debit to your account.

Be aware that most forex brokers require a 2% margin set for your account in order to receive interest. If not, you will have to pay for the rollover, it doesn't matter whether you are long or short the currency bearing the higher interest rate

Day Traders

For day traders, who almost never hold any overnight positions, the rollover is not applicable because there are no positions to roll, and therefore no interest is earned or paid.

Swing Traders

If you are a swing, position or long term trader, the rollover will affect your account since you'll earn or pay interest on a daily basis. Therefore, it is recommend to set your account at 2% margin and only try to long the currency bearing the higher interest rate.

A strategy for the longer term trader is the carry trade, which relies on a big interest rate differential between the two traded currencies.
For example the NZD/JPY currency cross pair.

Currently, traders earn a $13 daily rollover interest, credited to their accounts at 5PM EST while holding a long position in this pair for each standard lot(1 standard lot equals 100,000 units) traded; BUT, if you are short NDZ/JPY, your account will be debited $14/day for each standard lot traded! Interesting fact to know, isn't it?
Rollover example

If you are long 300,000 EUR/USD at rollover (5PM est) and EUR/USD at rollover is trading at 1.3200, the EUR short-term interest rate is 3.50% and the USD short-term interest rate is 5.25%

[Partnership With ForexGen]

Automatic 20 Pip Forex Trading System

2009-01-04T17:43:00.000-08:00

In fact, I don't believe there can be an automatic 20 pip forex trading system because there is always the element of the forex market which is totally unpredictable.

It's not irregular for a forex analysts whose automatic 20 pip forex trading system is based entirely on his fundamental and technical analysis has to come back the following day and explain an unexpected reversal due to fundamental (socio-economic) news being announced lower or higher than expected resulting.

Another example of why this may happen in these times is a decision made about the war in Iraq for example that has resulted in emotional buying or selling of the USD for instance and therefore rendering the automatic 20 pip forex system another forex loser for the day at least.

So, if fundamental analysis cannot be predicted, and as one author puts it "no one knows whats going to happen" in the forex market, how can an automatic 20 pip forex trading system be created?

The answer lies in the understanding of the word "automatic" If you truly want an automated automatic 20 pip forex trading system, you are going to be hard pushed. This is because there are going to have to be rules, such as not trading in the vicinity of newstime where the market reaction can be unpredicatable based on technical indicators due to the reaction of the market to the news as opposed more than predetermined technical levels which tend to get overidden particularly during major announcement such as the non-farm payroll data once per month.

However, you could call a manual trading strategy which makes a fairly consistent 20 points an automatic 20 pip trading system, but there has to be a footnote really, and that footnote must include various rules about the automatic 20 pip trading strategy as to when and how the system can and should be used exactly. The system itself is automatic in the way it roduces buy and sell signals, but, due to the nature of the forex market, it must be traded manually in reality using intuition and skill to not trade during false signals.

[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.

What makes this contest unique?

All prizes are CASH prizes with no restrictions on withdrawing the prize money! How Do I Enter?
You don't have to pay any fee to enter this contest, all [ForexGen] mini Accounts with a balance of "$1000" and a default leverage of 1:200 are entitled to participate in this contest upon their account holder request by sending an e-mail request on live.contest@forexgen.com

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

What Are Pips?

2009-01-04T17:37:00.000-08:00

If you are a forex trader, everything is usually about pips. For example, you might say, "I am up 35 pips for the day," or, "I made 127 pips on my last trade."

Although this sounds like a lot of fun, it would probably be helpful to explain what a pip actually is.

"Pip" stands for "percentage in point." Sometimes, people also refer to pips as "points." Basically, a pip is the smallest price unit for a currency. It is the last decimal point in every exchange rate or currency pair.

For most currencies, this means a pip is 0.0001. Therefore, if you bought USD/CHF 1.2475 and sold at 1.2489, you made 14 pips.

However, there are exceptions. One is USD/JPY. This currency pair only has two decimal places so that a pip is equal to 0.01.

Pips are very important because they are the basis by which a profit or loss is calculated.

What is a Pip Value?

Even when you utilize different currency pairs and deal with fluctuating prices, the pip usually remains the same. If the USD is the base currency, you divide the pip (which is usually 0.0001) by the exchange rate. If the USD is the quote currency, the pip value is always just one pip, such as 0.0001.

Therefore, if the exchange rate for USD.CHF is 1.2489, it goes like so:

0.0001 / 1.2489 = 0.0000800704

That probably seems like a small number, but remember that with forex trading, you can leverage small sums of money to move large amounts of currency. Therefore, it is entirely possible to make a profit off of such a small number.

For example, if your broker lets you trade with leverage of 100:1, you only need to put up $1000 to buy a standard lot of $100,000. You can see that trading in larger lots boosts the pip value so that your profit or loss is also affected, like so:

If you trade on $1000 in currency, your pip value is calculated thusly:

0.0000800704 X 1000 = $0.08 per pip.

This means that you have a profit of $112.14; not bad.

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Forex Scalping Methods for Big Consistent Profits

2009-01-04T17:32:00.000-08:00

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

Why Forex Scalping Can NEVER work longer term

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

Consider this:

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

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

You can’t!

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

You may be saying:

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

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

[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.

ForexGen serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

Best Tips for Learning to Trade Forex

2009-01-04T17:27:00.000-08:00

One of the first things you need to learn is that you have a great deal of knowledge to acquire. Many people jump right in and learn as they go. Sometimes that works without a lot of problems. However, many people who go this route end up losing a lot of investment capital before they begin to get the hang of the process. Before you make that first attempt at a trade, spend some time learning the basic terms and how to go about researching the background of a given trade you are considering.

Books on Forex trading can be a great way to go about learning the basics of Forex. One rule of thumb is to go with books that are written with the beginner in mind. Often, they will go to slightly more effort to explain some of the terms you will need to know, as well as provide easy to understand scenarios to illustrate each of the basic procedures involved with trading. Also, make sure that the books you read were written in the recent past. While many of the fundamentals never change, there are a number of variables with this type of investment. Older books may contain information that is out of sync with current market conditions. You will do much better if you learn based on the here and now.

Along with books, check into online resources to broaden your education about the Forex market and current trading methods. There are a number of web sites that are devoted to the subject of currency trading. Many of them will include a wealth of articles that deal with one facet or another of the process, and can provide excellent food for thought. Along with the articles, you may also come across a message board or forum that will prove to be very helpful. The forums allow you to begin networking with others who have an interest in the Forex market, and pick up some valuable trading tips.

If possible, you may want to learn the ropes of Forex trading by finding a mentor. By working with someone who is very experienced with the market, you will have the chance to try your hand at deals while someone is watching over your shoulder. This approach can allow you to learn as you go, and probably will also make it possible for you to pick up some valuable tips that would take years to acquire. A mentor may be a trusted associate who is willing to take you under his or her arm, or a professional that works with you for a fee.

[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:

1. All participants that manages to open at least 20 lots will be awarded a Live Account with $50 credit 2. All participants that manages to open at least 20 lots and keep their demo account initial balance will be awarded a Live Account with $100 credit 3. The highest 5 accounts with the highest profits (including the floating P/L) will be awarded a Live Account with $250 credit.

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.

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

Best Tips for Learning to Trade Forex

2009-01-04T17:22:00.000-08:00

If you are serious about getting into currency trading, then you would do well to learn at least the basics of Forex trading before you ever submit that first order. In order to get a handle on the essentials, you can make use of several basic suggestions that will serve you well throughout your trading career. Here are some valuable tips that will help you learn to trade in the Forex market and be successful.

One of the first things you need to learn is that you have a great deal of knowledge to acquire. Many people jump right in and learn as they go. Sometimes that works without a lot of problems. However, many people who go this route end up losing a lot of investment capital before they begin to get the hang of the process. Before you make that first attempt at a trade, spend some time learning the basic terms and how to go about researching the background of a given trade you are considering.

Books on Forex trading can be a great way to go about learning the basics of Forex. One rule of thumb is to go with books that are written with the beginner in mind. Often, they will go to slightly more effort to explain some of the terms you will need to know, as well as provide easy to understand scenarios to illustrate each of the basic procedures involved with trading. Also, make sure that the books you read were written in the recent past. While many of the fundamentals never change, there are a number of variables with this type of investment. Older books may contain information that is out of sync with current market conditions. You will do much better if you learn based on the here and now.

Along with books, check into online resources to broaden your education about the Forex market and current trading methods. There are a number of web sites that are devoted to the subject of currency trading. Many of them will include a wealth of articles that deal with one facet or another of the process, and can provide excellent food for thought. Along with the articles, you may also come across a message board or forum that will prove to be very helpful. The forums allow you to begin networking with others who have an interest in the Forex market, and pick up some valuable trading tips.

[Partnership With ForexGen]

Hydro Power Shows Signs of Comeback

2008-12-29T13:56:00.000-08:00

Hydro power shows signs of comeback amid demand for green power

America's search for cleaner electricity has developers studying dozens of government flood-control dams from North Carolina to Oregon to see if it makes financial sense to retrofit them with hydroelectric turbines.
The studies are part of a broader trend that has developers looking at everything from millpond dams in New England to locks and dams on navigable waterways such as the Mississippi and Ohio rivers.

Factors ranging from the difficulty in obtaining permits for new coal-fired power plants to government renewable energy mandates and tax credits have created a potential market for new hydroelectric projects.
"You've created both the stick and the carrot," said David Sinclair, president of Advanced Hydro Solutions. Sinclair's Ohio-based company is focusing on four potential hydropower projects involving government dams in Pennsylvania and West Virginia.
Sinclair says government dams often lend themselves to hydropower. Some, such as the Tygart Dam near Grafton, were even built with hydropower in mind: the Corps of Engineers' designed it in the 1930s with twin 15-foot-diameter tunnels. The tunnels have been capped ever since, but Sinclair's company is studying whether it's economical to pull the plugs, install turbines and start generating electricity.

"I could kiss the engineer that did that," Sinclair said.
Despite its advantages, Tygart is no sure thing for conversion. Neither are dozens of other government dams. The process requires years of careful planning, chiefly to avoid disturbing a dam's original purpose or from damaging the environment.
Developers have been trying for years to develop the Corps' Bluestone Dam near Hinton, for instance, and have yet to get past the initial stages despite government support.
"There's a reason that hydro isn't on a lot of these dams right now," said John Seebach, who directs the hydropower reform initiative for Washington, D.C.-based environmental group American Rivers. "It was because it just didn't make financial sense."

That's starting to change.
Developers now have a potential market for hydropower from utilities more interested in upping the size of their renewable energy portfolios than increasing generating capacity, said Jeff Herholdt, director of West Virginia's Division of Energy.

"The power ends up in our markets, but the green credits are being sold."
As a result, West Virginia, which is far better known for its vast coal reserves, is enjoying a bit of a hydropower renaissance. Tygart and other projects hold the promise of increasing the state's 264-megawatt hydropower capacity almost 50 percent, according to Herholdt.
"We're certainly not talking about new dams," he said. "Our intent is trying to making sure that, with the dams we have, that they are being advanced. It would look like that's happening."

That's happening elsewhere as well.
Federal Energy Regulatory Commission figures show permit applications from would-be developers of conventional hydroelectric dams jumped to 177 last year from 78 in 2006. Through late November, the commission had received another 132 applications this year.

"The FERC right now is inundated," Sinclair said.
A fair number of those permit applications involve federal flood control dams.
FERC records list about two dozen permits for possible hydro projects on federal flood control dams across the country. A review by federal agencies found about 64 of 871 federal dams merited further study as potential hydro sites, according to a 2007 report.
Combined, the agencies say they have the potential to generate 1,230 megawatts of electricity. That's roughly 42 percent as much as American Electric Power's John Amos coal-fired plant produces, or enough for a month's worth of electricity for more than 1.2 million homes.

FERC records show dams under consideration are scattered across the country: permits have been issued to investigate sites in Kentucky, West Virginia, Oregon, Iowa, Texas and California. Going from a permit to an actual hydroelectric dam, however, is a lengthy process.
Firms like Sinclair's have to figure out how they can add hydropower without damaging the environment -- or altering a dam's original purpose. That's a lengthy process that can cost upward of $1 million, Sinclair said.
However, the process ends up with a project designed to cause no additional harm and, perhaps, even improve a river, said Seebach, whose group is better known for trying to remove dams than supporting them. American Rivers has, however, been working with the hydropower industry on converting existing dams.

[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.

What makes this contest unique?

All prizes are CASH prizes with no restrictions on withdrawing the prize money! How Do I Enter?
You don't have to pay any fee to enter this contest, all [ForexGen] mini Accounts with a balance of "$1000" and a default leverage of 1:200 are entitled to participate in this contest upon their account holder request by sending an e-mail request on live.contest@forexgen.com

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

Euro Could Gain This Week, But Long-Term Outlook Remains Bearish

2008-12-28T16:47:00.000-08:00

Fundamental Outlook for Euro This Week: Bullish

- ECB Governing Council Member Nowotny says he can’t rule out further rate cuts
- The Euro-zone's current account deficit narrowed to 6.4 billion euros, thanks to lower oil prices

The euro spent the majority of the past week consolidating versus the US dollar between 1.3915 and 1.4125, and these levels remain the proverbial lines in the sand, as a break above or below the bounds will suggest that price will continue to move in that direction. However, given the pair’s slow and steady climb from the December 19 low of 1.3826, it seems more likely that the EUR/USD rally could extend beyond 1.4125 toward 1.4300 once volumes pick up again.

From an event risk perspective, there’s nothing on the euro’s side of the coin to prevent such a move. The only indicators due to be released include the Purchasing Managers’ Index results for the Euro-zone’s retail and manufacturing sectors, both of which are anticipated to reflect the worst conditions on record. Nevertheless, these do not tend to be very market-moving for the euro, leaving technical analysis as a better method to use this week.

In coming weeks, though, traders should keep in mind that the European Central Bank is still anticipated to cut rates yet again on January 15, as Credit Suisse overnight index swaps are pricing in a 50bp reduction to 2.00 percent. The fact of the matter is that price growth has slowed dramatically and recession is plaguing the Euro-zone’s biggest economies. While credit conditions have improved in recent weeks, the potential for instability still lingers and the ECB may want to confront this head on with more accommodative monetary policy.

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Using Orders in The Forex Market

2008-12-25T18:58:00.000-08:00

Orders are critical trading tools in the forex market. Think of them as trades waiting to happen, because that’s exactly what they are. If you enter an order and a subsequent price action triggers its execution, you’re in the market, so be as careful as you are thorough when placing your orders in the market. Currency traders use orders to catch market movements when they’re not in front of their screens.

Remember: The forex market is open 24 hours a day, five days a week. A market move is just as likely to happen while you’re asleep or in the shower as while you’re watching your screen. If you’re not a full-time trader, then you’ve probably got a full-time job that requires your attention when you’re at work. (At least your boss hopes he has your attention.) Orders are how you can act in the market without being there.
Experienced currency traders also routinely use orders to:
_ Implement a trade strategy from entry to exit
_ Capture sharp, short-term price fluctuations
_ Limit risk in volatile or uncertain markets
_ Preserve trading capital from unwanted losses
_ Maintain trading discipline
_ Protect profits and minimize losses

[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.

ForexGen serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

What Does Scalping Mean?

2008-12-24T16:49:00.000-08:00

Scalping is a trading strategy that the trader try to make many small profits with small price changes, the Scalper will place from dozens to hundreds trades in a single day because it’s believed that the small price moves are easier to catch than larger moves.
It based on an observation that the most of the price movements goes in the trader direction for a while of time before it goes in its trend direction!

In the Forex world a lot scalpers say “If I make a 20-25 pips per day by scalping the market and with a proper money management I might double my account balance every month”.
Theoretically, true! But what about the real? What about the risk of scalping the market?

Scalping risk:

While it seems profitable method when scalping the price movements, however the spread you pay when you open a trade makes the risk-reward more risky than the long term trading (trend trading).

For example if your broker charges you 5 pips spread for opening EURUSD position and your target is 10 pips and 10 pips stop loss; the price have to move 15 pips (5 pips of spread + 10 pips your target) to take the profit while it have to move only 5 pips (10 pips your stop loss - 5 pips of spread) and stop loss level will be reached.
So, the risk-reward ratio in this case is 2-1 which means a very dangerous and risky method to scalp!

Another risk in the Scalp is that one large loss could eliminate the many small gains that the trader has worked to obtain. So it needs a very good exit strategy to decrease this risk!

Why brokers hate scalping?

The most of brokers will not turn your trades with a market maker

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EUR/USD, DJIA Continue to Drift Within Well-Defined Ranges

2008-12-23T16:19:00.000-08:00

Whether you are looking at the currency markets or stock markets, it is clear that most assets are drifting within well-defined ranges as trading remains muted, as is typical in the financial markets around the holidays. Indeed, since the start of the week, EUR/USD has consolidated into a range of 1.3920 - 1.4000, though we did see a high of 1.4125 reached early Monday morning. Likewise, the Dow Jones Industrial Average has yet to stray from its range of roughly 8370 - 9000, despite news that American Express received preliminary approval from the US Treasury to receive $3.39 billion in TARP funds.

However, the first tranche of $350 billion has already been used to shore up financial institutions and to prevent GM and Chrysler from filing for bankruptcy, so the release of the second tranche will need be approved by Congress before American Express will receive their funding.

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Tourism to Goa Takes Beating After Mumbai Attacks

2008-12-22T14:38:00.000-08:00

Goa's year-end beach parties fizzle in wake of Mumbai attacks

Beach beds are lined up outside the snack bars dotting the sandy white coastline and dance music booms from bars and restaurants. The only thing missing from Goa's beaches are the throngs of merrymakers who normally flock here for the hedonistic year-end parties.
With the country on alert in the wake of the terror attacks in Mumbai that killed 164 people and nine accused gunmen, Goa officials have banned beach parties and stepped up patrols. Scores of spooked foreigners have canceled vacations.
Those who stuck to their plans are arriving to metal detectors and baggage scanners instead of the cocktails, house music and rollicking outdoor parties that the laid-back former Portuguese colony is known for.

As Goa effectively shut down its party scene, Mumbai was attempting a return to normalcy.
The iconic Taj Mahal hotel and the Oberoi, both targets in the bloody attacks, partially reopened on Sunday, greeting guests with prayer ceremonies and pledges of tightened security. With the holidays approaching, the landmark hotels seemed eager to woo guests back.
But jitters kept visitors away from Mumbai and Goa alike.
"There aren't enough parties. Everyone's scared," said John Ball, a 22-year-old marine engineer from London, as he strolled down the popular Baga Beach.

"This is the peak season. Everyone should be coming out," said Ball, who was back visiting Goa after making a trip two years ago. "To me, it looks like half the amount of people than usual."
Adding to surveillance by the Indian Coast Guard, Goa police also are patrolling the coastline with boats carrying armed officers, Inspector General of Police Kishan Kumar said.
On Saturday, officials reluctantly banned all beach parties.

"Taking into consideration all the aspects, we have decided that beach parties would not be allowed from Dec. 23 to Jan. 5," Goa Chief Minister Digamber Kamat said.
Just a handful of tourists loitered on Baga Beach on one recent afternoon. Some strolled along the sandy coastal stretch, others lazed on beds laid out near a row of shacks that serve drinks and snacks.
But by early evening, the eclectic mix of jewelers, bars and restaurants crammed along a narrow strip right off the beach -- usually hopping this time of year -- were largely empty.
"We feel like crying," said Tony Branza, manager of the beach shack Lucky Star, where few people were buying up the snacks and drinks on sale. He said revenue is down by some 90 percent compared to a year ago.

The neighboring Le Marin beach shack has a staff of 30 and not enough money coming in. "How will I pay salary for these people?" owner Francis D'Souza said.
The dearth of visitors could be devastating because tourism is a major money spinner for this tiny region that spans about 1,430 square miles (3,700 square kilometers) -- about 200 square miles (520 square meters) larger than Rhode Island.
Since Portuguese rule ended in 1961, Goa has evolved into a popular tourist destination and its coastline is crammed with hotels -- ranging from low-cost backpacker havens to five-star luxury resorts.
Last year, Goa was India's No. 10 destination for foreign tourists, drawing nearly 390,000 visitors, according to figures compiled by India's Ministry of Tourism.

Tourism accounts for 34 percent of the state's gross domestic product, generating about 15 billion Indian rupees ($320 million) in revenue a year, according to Director of Tourism Elvis Gomes.
But in the wake of the attacks, the U.S., Canada, Britain and other countries issued travel advisories warning its citizens against visiting India. Britain and Israel issued specific warnings about Goa.
Goa is particularly popular among young Israeli backpackers fresh out of military service. Restaurants offer Hebrew-language menus, and some locals have even picked up a smattering of Hebrew.
This year, Israelis have been warned to stay away. The Mumbai attackers targeted a Jewish center, killing a rabbi and his wife, as well as luxury hotels and a train station.

"Despite the absence of a concrete warning on a planned attack by Islamic militants in this region, it is a tempting potential target for Islamic terror groups, particularly during the new year period with its Christian events (infidel celebrations in the eyes of the attackers)," a Hebrew-language Israeli government advisory said recently, recommending Israelis against visiting Goa during the second half of December.
Travelers are taking heed. The number of tourists to Goa has dropped by 20 percent since the attacks and the number of hotel bookings for the upcoming holiday season is down by the same percentage compared to last year, Gomes said.
He said he hopes it's just a phase. "I'm a bit worried in the short term, but not in the long term. I'm hopeful the situation will be overcome shortly," Gomes said.
Reymund Merx, a 44-year-old banker from Aachen, Germany, said he will be avoiding crowded places -- especially discos. "The discotheque is a point where it can be 'poof,'" he said, simulating the sound of an explosion.

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Oil Gains as Dollar Weakens

2008-12-21T19:27:00.000-08:00

Oil rose more than $1 to above $43 a barrel on Monday, buoyed by a weaker U.S. dollar and tough talk from top OPEC producers of compliance with their record output cut, while U.S. data showed speculators betting on a bounce.

U.S. light crude for delivery in February, when cuts in OPEC production were expected to take hold, rose 93 cents to $43.30 a barrel by 0126 GMT. The January crude contract expired on Friday, when it traded at a deep discount to February as key mid-continent storage tanks filled to near overflowing.

London Brent crude gained 69 cents to $44.69.
"The U.S. dollar has weakened after the sharp rebound on Friday. That's one of factors pushing oil higher," said Toby Hassall, chief analyst at Commodities Warrants Australia.
A surge in net speculative investment in the crude complex to its highest since mid-May, as of December 16 data, also fed the emerging view that markets may have hit bottom for now, although fears over the outlook for demand tempered hope for a bounce.

Speculators increased their net length to 64,120 lots during the week to last Tuesday, a surge from 10,807 the previous week, Commodity Futures Trading Commission data showed.
"I suspect in the last couple of weeks we probably saw a bottom in the oil market and that is also attracting some buying interest," said Hassall.
The U.S. dollar fell against the euro on Monday, giving up some of its gains made after the U.S. government offered a lifeline to U.S. carmakers, as investors remained concerned over the deepening economic recession. (USD/)

Oil prices have fallen more than $100 from their peak of above $147 in July as a global economic crisis slashes global oil demand.
Pledges by OPEC last week to cut output by 2.2 million barrels per day (bpd) -- its deepest ever supply cut -- have failed to stem the slide in January oil prices, which expired on Friday at $33.87 a barrel, the lowest since February 2004.

OPEC kingpin Saudi Arabia moved to scotch doubts on Sunday on the cartel's pledge to cut oil production to stabilize world oil markets, while Kuwait's oil minister also said separately on Sunday that he was confident that OPEC members will comply with latest output cuts decided by the group.
"Don't doubt the efforts of OPEC or its members to return the oil market to stability," Saudi Arabia's Ali al-Naimi told reporters.

But some analysts said doubts would linger.
"With the cartel, compliance is always going to be an issue. We have yet seen the full impact of the previous supply cuts and that will take some time to come through," Hassall said.
In OPEC member Nigeria, where production has been hindered for years by repeated militant attacks, gunmen in speedboats attacked three oil services ships and kidnapped at least two Russians in separate incidents in the Niger Delta, sources said on Saturday.

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Canadian Dollar Forecast Unclear Against US Dollar

2008-12-18T18:10:00.000-08:00

USD/CAD Ratio: -1.02

Signal: Bullish

USDCAD – The ratio of long to short positions in the USDCAD stands at 1.07 as nearly 52% of traders are long. Yesterday, the ratio was at -1.05 as 51% of open positions were short. In detail, long positions are 1.7% higher than yesterday and 50.6% weaker since last week. Short positions are 8.9% lower than yesterday and 11.1% stronger since last week. Open interest is 3.7% weaker than yesterday and 56.7% below its monthly average. The SSI is a contrarian indicator and signals more USDCAD losses.

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Bridging Technical and Fundamental Analysis

2008-12-17T16:59:00.000-08:00

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Dollar Falls Against The Yen in Night Trading

2008-12-16T10:53:00.000-08:00

Dollar falls versus the yen in trading late Monday night

The dollar slipped against the Japanese yen late Monday night. The greenback fell to 90.48 yen from the 90.60 yen it bought in late afternoon trading.

On Friday, the dollar was worth 91.12 yen.

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More Challenges Await U.S. Homebuilders

2008-12-15T10:49:00.000-08:00

Fitch: More Challenges Await U.S. Homebuilders as Housing Downturn Enters Year 4

With the U.S. economy in a severe recession and housing likely to deteriorate more sharply in 2009, U.S. homebuilders are facing even more operational and financial pressures, according to Fitch Ratings, which took rating actions on its public U.S. homebuilder universe of 14 companies late last week, resulting in nine downgrades and five affirmations.

Housing had stood out as one of the weakest sectors of (what was thought to be) a reasonably stable economy during the first three quarters of 2008. Affordability, wavering buyer confidence and significantly tighter mortgage standards, as well as still-considerable inventories of new and existing homes for sale (boosted by foreclosures) had severely restrained housing. But in the fall credit markets in the U.S. and in many other parts of the world froze, a condition that has barely eased. Already weak consumer confidence has plummeted. Job losses have surged. The economy is clearly now in a sharp recession. As weak as housing has been, it can deteriorate further, in particular, influenced by job losses, fear of job loss, poor consumer confidence and lack of income growth or possibly income contraction. Fitch is projecting that the recession, which technically began in December of 2007 (according to the Business Cycle Dating Committee of the National Bureau of Economic Research) will extend well into 2009. Some recently announced programs or programs under consideration by the Treasury Department and Fed designed to boost housing demand may soften the impact of the recession, but it appears very likely that key housing metrics (starts, new home sales, existing home sales) will be meaningfully weaker in 2009 than was reflected in Fitch's earlier forecast. A trough in new home sales is not likely until the second half of 2009, if not later. Starts should bottom three-to-six months after new home sales.

Ratings Rationale:

Fitch concludes that operational and financial pressures will persist and, probably, intensify for the public homebuilders during 2009. Profitability and cash flow will be somewhat weaker than anticipated earlier. Operational and financial ratios will suffer further stress. The consequence of the change in macro perspective resulted in Fitch's most recent rating actions for the homebuilders. The Rating Outlook for the sector is Negative.

The new ratings for the homebuilders reflect the most likely macro perspective for the balance of 2008 and 2009 as well as company-specific performance to this point in the cyclical downturn. As Fitch has noted in the past, a homebuilder's approach to land and development spending, inventory management, free cash flow generation and management and debt reduction are considered in its ratings in the midst of a housing downturn as are other factors such as credit metrics, ability to satisfy covenants, liquidity, size, geographic and product diversification, margins, and frequency of real estate write downs and option write-offs, etc.

Homebuilders have to successfully operate within this challenging environment or wither away. Companies have to continue to downsize to the point where they can remain or become profitable (excluding non-recurring real estate charges). That means further cuts in staffing and other overhead, as well as other cost reductions.

The public homebuilders cannot significantly influence profitability, but they can manage their balance sheets and their liquidity. Fitch Ratings believes that, overall, the U.S. homebuilding sector has good liquidity, although there are some weaker companies that face greater risk. Many companies in this sector have generated meaningful free cash flows over the past 12 months, while terming out borrowings and maintaining access to committed bank facilities which together provide room to handle maturities and fund working capital needs. As compared to the last major housing downturn in the latter 1980's into the early 1990's, leverage was lower during the later part of this upcycle, at the peak and currently (for some of the builders). For the majority of public homebuilders, debt composition 15-20 years ago was mostly, or all, short-term construction loans and possibly a secured credit line, while today the debt is often weighted most heavily to well laddered public debt (a more appropriate balance with longer-lived real estate assets), and, to a lesser degree, to an unsecured revolving credit facility. (All of the public homebuilders in Fitch's coverage have unsecured revolving credit facilities except for Beazer Homes USA, Hovnanian Enterprises, Inc. and Standard Pacific Corp., which have secured revolving credit facilities.)

Fourth-Quarter 2008 and Calendar 2009:
The world economy is entering a severe recession. Output is falling in the US, Japan, Germany, France and the UK, and prospects are for this contraction in activity to intensify over the next 12 months. For the major advanced economies (the US, Euro area, UK and Japan) in aggregate, Fitch Ratings is forecasting the steepest decline in GDP since the Second World War at -0.8%, in part reflecting the unusually synchronized downturn expected next year.

Although the latest GDP figures for the third quarter of 2008 showed only a small fall, this disguised a clear trend of accelerated declines in consumer expenditure. Growth in the third quarter of 2008 was supported by an inventory accumulation and net exports. While imports will continue to decline, the recent pace of export growth seems unlikely to be sustained. Fitch projects fourth quarter GDP will decline at least 0.7%. GDP is expected to shrink by just over 1% next year. Unemployment is expected to rise in the 2008 fourth quarter and continue to increase reaching to 8.3%, some 3.5pp above its structural rate.

Fitch's forecast for the housing sector became more bearish as 2008 evolved. This is principally due to the influence of even tighter credit standards for homebuyers and the effect of disruptions in the credit markets.

Of course, most potential homebuyers, absent any real urgency to buy, are deferring the purchase decision, concerned that selling their existing home at a fair price may be challenging, and fearing that real home prices might further decline as builders increase the level of incentives being offered to the advantage of those who wait to buy.

The disruption in broad credit markets and media focus on accelerating job losses took a further toll on homebuyer confidence since September. Consequently, housing metrics are likely to be weaker in the fourth quarter of 2008 as compared to the preceding quarter.

Total housing starts are forecast to be 910,000 in 2008, 33.1% lower than in 2007. Single family starts are expected to be 0.62 million, down 41.0% as compared to a year ago. Multi-family starts should decrease 6.5% to 290,000. New single family home sales should fall 37.2% to 487,000, while existing home sales ease 13.6% to 4.88 million.

For the full year of 2008, production, as represented by housing starts (especially single family), is expected to fall slightly faster than sales (new orders), but unfortunately the supply of homes is expected to still be excessive entering 2009.

The average single family new home price is expected to drop 6.5% in 2008, while the median new home price decreases 5.5%. The 'real' price reductions are larger than shown by the government's published transaction prices (and our forecasts) as, for example, sales incentives are not included. However, in 2008 a greater portion of the "real" price reduction was due to overt sales price decreases than was the case in 2007. Unfortunately, home prices have still not yet reached market-clearing levels in most places. Home prices (especially existing home prices) definitely had been 'sticky' on the downside, but came down more sharply in 2008, at least partially prompted by aggressive pricing of foreclosures and distressed homes.

Fitch is forecasting a contracting economy during the first half of 2009. Real GDP is forecast to decrease 1.2% for all of 2009. Investment is expected to plunge 6.9% as consumer spending and imports decline 0.6% and 3.2%, respectively. Government spending (+2.3%) and exports (+2.2%) will be economic positives next year. Inflation is expected to slow to 1.5% from 2.7% in 2008. Interest rates are expected to slightly recede.

The economy in the midst of a moderate to severe recession is another blow to housing. In particular, a deteriorating economy further erodes consumer confidence and accelerates job losses and consequentially foreclosures. One source, RealtyTrac, is currently predicting 1 million foreclosures in 2009. Undoubtedly, another stimulus program will emanate from Congress early in 2009 and there may be national legislation to specifically and more effectively target the foreclosure problem, as well as accelerate housing demand. However, these actions are unlikely to stabilize and then boost housing demand until the second half of 2009 or later.

In 2009, total housing starts are projected to fall 22.0% to 710,000 with single family volume declining 22.6% to 480,000. New home sales are forecast to decrease 16.0% to 409,000, while existing home sales slip 3.0% to 4.735 million.

Average and median single family new home prices are projected to fall 2% and 1%, respectively, in 2009. The combination of overt price decreases and sales incentives should represent a less significant percentage of the base home price next year than was the case in 2008.

Implications for the Companies and the Ratings:

Through the three quarters of calendar 2008 builder revenues are down about 39%, home deliveries are off 33%, and EBITDA margins (before non-recurring, non-cash real estate charges) are about 570 basis points lower than year earlier levels. Third quarter net new unit orders are down 34%, on average, and unit backlog at the conclusion of the third quarter, on average, is 46% beneath year earlier levels.

These companies have been contracting staffing as demand has evaporated with personnel typically down 50-65% as compared to peak staffing in early 2006. Just as important, builders have been reducing inventories in 2008, down 53% on average as of the end of the 2008 third quarter (or equivalent) as compared to the peak quarter end in 2006. (Admittedly, this is partially as a consequence of write downs). The companies have lowered debt - on average 28.5% since the peak, typically in 2006. Free cash flow comparisons have generally improved.

Credit metrics (LTM EBITDA/interest incurred, debt to LTM EBITDA, and FFO interest coverage) are considerably lesser than at this time last year. Debt/capitalization ratios have deteriorated moderately to sharply for the majority of builders when compared to one or two years ago, largely as a result of erosion in shareholders' equity from sizeable real estate charges.

Given Fitch's adjusted macro forecasts for the balance of 2008 and 2009, it appears likely that builders' financial pressures will continue unabated. For the full year of 2008 homebuilders' revenues could drop 40%, on average, while pretax losses, before real estate charges, will be reported for 12 of the 14 homebuilders Fitch tracks.

Price competition will likely persist at current levels well into 2009. Consequently, margins will remain under pressure and more land value write downs are a distinct possibility, although likely to be of lesser magnitude than in 2008. However, fewer option write-offs are likely.

Deterioration in credit metrics will continue during the fourth quarter of 2008 and next year, particularly for profit related metrics (EBITDA, interest coverage; debt to EBITDA). Tangible net worth covenants will again be challenged.

Most of the public builders that Fitch tracks have negotiated new revolving credit agreements or amendments to existing agreements that should prevent the companies from violating interest coverage covenants in the fourth quarter of 2008 and into 2009 as well as covenants applicable to speculative inventories and tangible net worth. Some builders may have to revisit their bank syndicates and request further covenant adjustments in 2009.

If Fitch's year-end forecast for 2008 is correct, then 2009 will start off with still considerable inventory over-hang. New home sales comparisons (year-over-year) would likely bottom late in 2009 with housing starts bottoming three-to-six months later.

There is a high probability that many public builders' revenues and profitability will fall further in 2009. Excluding tax refunds, cash flow from operations is likely to be lower in 2009 relative to 2008.

Credit pressures will continue. It will be imperative that builders continue to contract their balance sheets, further reducing land and development spending. Possibly more aggressive pricing may be necessary to lower inventories, especially specs. Positive free cash flow comparisons should result.

Fitch expects homebuilders to reduce debt where possible and to exercise restraint as to share repurchase, dividends and acquisitions in these uncertain times.

Although some builders have been more proactive than others in reducing inventories and lowering debt levels, most, in retrospect, started relatively late during this cyclical downturn.

Fitch rates the builders within the context of a typical cycle. In the midst of a non-typical upcycle, as took place in the 1992-2005 period, a number of builders realized higher credit ratings. Conversely, in this sharper than expected contraction, which it appears will last longer, and as builders' operating and credit metrics will be even more stressed, ratings again have to be adjusted.

Following last week's rating actions, Fitch's Rating Outlook is Negative for the majority of the homebuilders. Recent and projected credit metrics and other key metrics, such as inventory and debt contraction and cash flow generation, were taken into account relative to the new ratings.

The following is a list of Fitch rated issuers and their current Issuer Default ratings (IDRs) in the U.S. homebuilding sector:

--Beazer Homes USA ('B-'; Outlook Negative);

--Centex Corp. ('BB'; Outlook Negative);

--D.R. Horton, Inc. ('BB'; Outlook Negative);

--Hovnanian Enterprises, Inc. ('B-'; Outlook Negative);

--KB Home ('BB-'; Outlook Negative);

--Lennar Corp. ('BB+'; Outlook Negative;

--M.D.C. Holdings, Inc. ('BBB-'; Outlook Stable);

--Meritage Homes Corp. ('B+'; Outlook Negative);

--M/I Homes, Inc. ('B'; Outlook Negative);

--NVR, Inc. ('BBB'; Outlook Stable);

--Pulte Homes ('BB+'; Outlook Negative);

--Ryland Group ('BB'; Outlook Negative);

--Standard Pacific Corp. ('B-'; Outlook Stable);

--Toll Brothers, Inc. ('BBB-'; Outlook Stable).

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Fed To Press Rates Toward Zero

2008-12-14T17:37:00.000-08:00

The U.S. Federal Reserve is expected to drop interest rates close to zero on Tuesday, but anticipated remarks on unconventional methods to dispel a year-old recession are what will really matter.
Economists forecast a clear statement that the U.S. central bank will aggressively deploy so-called quantitative easing measures to shelter the economy from a steepening downturn, but do not expect details of what steps it will actually take.

Those words would accompany a decision by the Fed to lower its target for overnight rates by at least a half-percentage point, economists believe.
A half-point cut would take the bellwether federal funds rate to just 0.5 percent, the lowest on records dating to July 1954, as the central bank battles a recession many think will stretch well into next year.
The announcement is expected around 2:15 p.m. on Tuesday at the end of a two-day meeting. The gathering had initially been scheduled for a single day, but was extended so policy-makers could study options for unusual steps to spur the economy with little room left to lower borrowing costs.

"From here on out, monetary policy has to rely primarily on non-traditional tools, tools other than the funds rate, to try to stimulate the economy," said former Fed Governor Lyle Gramley, who expects the Fed to spell this out.
"They are certainly going to have to acknowledge that non-traditional methods are going to be employed aggressively to try to provide assistance to the economy," he said.

A U.S. housing collapse panicked credit markets and has hammered the rest of the economy since the failure of investment bank Lehman Brothers in September. Many economists predict economic activity will shrink by an annualized 6 percent or more in the fourth quarter as unemployment climbs.
Quantitative easing, which the Bank of Japan used to end a decade of deflationary stagnation in the 1990s by pumping money into the banking system, was foreshadowed by Fed Chairman Ben Bernanke in a speech on December 1.
He emphasized the Fed would use all the weapons in its arsenal to protect the economy, and identified direct purchases of government and mortgage-related debt as possible options.

TARGET SPREADS

With yields on U.S. government debt already very low and private borrowing rates high because loss-scarred banks are too scared to lend, economists think it more likely the Fed will target private-sector mortgages to drive down home loan costs.
Buying such bonds should narrow the spread between their yields and yields on debt issued by the U.S. Treasury, and allow banks to offer home loans at lower rates.
Lower mortgage rates should raise demand for houses and stem the slide in home prices, which would help staunch massive bank losses that have touched off a global credit crisis.

"My one-word advice to the Fed now is 'spreads.' Fortunately, I don't think Ben Bernanke needs this advice. He gets it," said Alan Blinder, a former Fed vice chairman and professor of economics at Princeton University.
The Fed has already embarked on quasi-quantitative easing by allowing its balance sheet to more than double in size after pumping over $1 trillion into financial markets to prevent them from seizing up completely in the face of mounting losses.
Such liquidity measures are traditionally "sterilized" so they do not expand the money supply and stoke inflation.

But the Fed has abandoned this practice in an effort to reduce private borrowing costs that have so-far remained elevated despite dramatic official interest rate cuts. In addition, inflation fears have been replaced by worry that prices may fall too far and inflict deflation, similar to the Japanese economic conditions of the 1990s.
"The focus will be on purchasing assets to affect spreads. All of their policies are aimed at driving down borrowing costs to consumers and businesses," said Dean Maki, co-chief U.S. economist at Barclays Capital in New York.
"We don't think that the best use of the Fed's balance sheet is to further reduce the risk-free rate," he said. U.S. Treasury bonds are said to offer a risk-free rate of return because the U.S. government, with the ability to print dollars via the Federal Reserve, would never default on dollar debts.

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Oil Prices Near $48 a Barrel as Dollar Falls

2008-12-12T11:31:00.000-08:00

Weak dollar outweighs IEA report on weak demand; oil prices near $48

Oil prices rose 10 percent Thursday as the value of the dollar sank further and investors dumped money into crude markets.

The falling dollar, which makes commodities like oil more attractive, outweighed a new report from the International Energy Agency, which said energy demand is sliding sharply.

Crude prices have spiked ahead of next week's meeting of OPEC, which is expected to slash production.

"Probably the biggest factor right now is financials," said Phil Flynn, an analyst with Alaron Trading Corp. "The market is worried that all these bailouts ... means we're going to be printing a lot more money, which makes the dollar weaker. That's really supporting the price."

Analysts cautioned reading too much into oil's rally. The price is up nearly 18 percent from last Friday's settlement price. After all, you don't have to look far to be reminded of the global economic downturn and its effect on crude consumption.

Paris-based IEA said Thursday that global oil demand will shrink this year for the first time since 1983. The IEA cut its forecast for global oil demand in 2008 by 350,000 barrels a day to 85.8 million barrels a day, down 0.2 percent from 2007.

The IEA also cut its forecast for global oil demand in 2009, saying it would increase by just 0.5 percent next year, to 86.3 million barrels a day. That's 200,000 barrels a day less than its estimate last month.

"It's premature to say the lows have been placed," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates. "If they don't put an auto package together soon, if the stock market gets slammed 300 or 400 points, we could shrug off the currency factor pretty quickly."

Light, sweet crude for January delivery rose $4.46 to settle at $47.98 a barrel in trading on the New York Mercantile Exchange, after rising to near $49 earlier in the session.

Prices at the pump, however, continue to plummet. Gasoline prices fell 1.9 cents overnight to a national average of $1.664 per gallon, according to auto club AAA, the Oil Price Information Service and Wright Express. That's 55.6 cents a gallon below what it was a month ago and $1.326 below where it was a year ago.

The U.S. dollar lost ground against other major currencies, making commodities like oil more attractive to investors as a hedge against inflation and dollar weakness.

The euro rose to $1.3227 on Thursday from $1.2988 late Wednesday in New York, while the dollar fell to 91.18 Japanese yen from 92.63 yen in the previous session.

Focus has remained on comments coming from the Organization of Petroleum Exporting Countries, which accounts for about 40 percent of global crude supply. The group has signaled it plans to slash output quotas at a meeting Dec. 17 in Algeria.

Many analysts expect production cuts of as much as 2 million barrels a day, which would match the combined reductions of two previous output cuts earlier this year.

Victor Shum, energy analyst at consultancy Purvin & Gertz in Singapore, said indications from Saudi Arabia -- the biggest oil producer in OPEC -- that it would cut production going into January boosted hopes of a significant output reduction.

Russia's plan to coordinate production levels with other non-OPEC producers also supported prices. Energy Minister Sergey Shmatko said Russia would soon make an announcement of its intentions with OPEC.

On Thursday, Russian President Dmitry Medvedev suggested that Russia is ready to work with OPEC.

"I'd like to say that we are ready to defend our revenue base -- oil, gas. Moreover, such defensive measures could be connected with a reduction in oil output, and with the participation in the existing organization of producers," he was quoted as saying by RIA-Novosti and Interfax.

Shum said OPEC production cuts, which had failed in the past to curb plummeting oil prices, would not result in a rally but would stabilize the market and prevent any further downward spiral.

"There is a lot of bad economic news and if there is no meaningful cut by OPEC, oil pricing will come under a lot of downward pressure," he said.

What's more, he added, the success of any output cut in stabilizing the oil price will depend on how closely OPEC members comply with it.

In two separate announcements, OPEC said it would cut production by 2 million barrels a day.

OPEC's November production was well above quotas agreed to by member states, according to Platts, the energy information arm of McGraw-Hill Cos.

OPEC's 13 members pumped an average of 31.38 million barrels a day last month, a decline of only 880,000 barrels from the October level.

Oil prices have fallen 70 percent since peaking at $147.27 in July. After hitting $40.50 a barrel last week, some oil traders believe that if the market has not bottomed out, it is close to doing so.

"While we maintain our bearish bias, we are of the opinion the market has found a range in between the low $40s on the bottom and the mid $50s on the high end," oil trader and analyst Stephen Schork said in a report Thursday.

In other Nymex trading, gasoline futures jumped nearly 11 cents to settle at $1.0786 a gallon. Heating oil gained 10 cents to settle at $1.5066 a gallon and natural gas for January delivery fell 11.8 cents to $5.568 per 1,000 cubic feet.

In London, January Brent crude soared $4.99 to settle at $47.35 on the ICE Futures exchange.

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Today's Riksbank Rate Announcement

2008-12-04T12:33:00.000-08:00

Sweden's Riksbank Meets Ahead of Schedule to Cut 175bp and Shifts Policy Outlook

Today's Riksbank rate announcement was moved forward from December 17. The central bank gave no reason for the date change but the move by the Riksbank's suggests that the central bank is eager to cut rates. A potential aggressive cut would coincide with similar moves from the ECB and BoE today. We have revised our rate outlook and now look for a one percentage point rate cut to 2.75%, which is in line with the Bloomberg snap poll this week. The Riksbank should also revise down its growth and rate projections. We expect further sharp rate cuts ahead and look for the repo rate to bottom at 1.50% next year.

The Riksbank slashed the repo rate by a massive 175bp to 2.00%, far more than the market median estimate for a 100bp rate cut as well as the 125bp cut priced in the markets. The aggressive move will also raise the stakes ahead of the BoE and ECB rate announcements later today. The central bank signals that this is its last cut, with its rate path outlook having the repo rate bottoming at 2.00% and sees a repo rate of 2.5% in Q4 of 2010 and of 3.2% in 2011. However, we see the risk for the Riskbank yet again having to revise down its rate estimate and cut rates further to 1.50% next year. The central bank also revised down its growth estimates to 2.2% and -0.5% for 2008 and 2009 respectively, versus 1.2% and 0.1% in October, while 2008 and 2009 CPI is now estimated at 1.2% next year, compared to a 2.1% estimate in October.

Meanwhile, the SEK headed lower after the Riksbank rate move, which saw the repo rate slashed by 175bp to 2.00%. The move was a shock to the market, which was pricing in a move up to 125bp, although the consensus had been for a 1% move. EUR-SEK moved up to 10.5290 highs versus 10.4500 ahead of the announcement, which increases the risk of a challenge of the 10.6900 top recorded in November. Equity markets and the churn in the risk profile should drive price action, while the risk of further rate cuts ahead should also encourage further SEK selling on rallies. EUR-SEK bids are noted below 10.4000 and in to the 10.3500 region in the very near-term.

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[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:
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Trend of the Day EUR/AUD

2008-12-04T12:10:00.000-08:00

EURAUD is coiling in a tight Pennant formation.

The European Central Bank (ECB) rate decision could be the catalyst needed to break this pair out of this range and toward new highs. The daily trend remains up and prices are hugging close to the rising daily support trend line. Buying at support with a stop 50 pips below the trend line targeting the next level of resistance occurring at 2.0597 would be a possible course of action. An alternative course of action entails buying a break or the Pennant at 1.9902.

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Swiss Franc Technical Outlook

2008-12-03T18:42:00.000-08:00

Higher highs and higher lows since the March low favors bulls longer term.

Near term, the decline from the top side of the channel is impulsive and the rally from 1.1828 is corrective. Expect weakness below 1.1828 in the next several weeks.
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Canadian Dollar Technical Outlook

2008-12-03T18:12:00.000-08:00

The rally from just below 1.15 is in 5 waves and could be a truncated 5th wave.

If so, then a correction back to at least 1.15 and possibly lower is underway now. The drop from 1.2993 to 1.2120 is in 5 waves, which is bearish. Price should remain below 1.2993.

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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.
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Australian, New Zealand Dollars Hold Up Despite RBA Rate Cut

2008-12-02T21:58:00.000-08:00

Australian, New Zealand Dollars Hold Up Despite RBA Rate Cut, Japanese Yen Slips as Dow Gains 3.3%

The Australian dollar and New Zealand dollar both managed to edge higher on Tuesday despite the Reserve Bank of Australia’s 100bp rate cut on Monday evening to 4.25 percent.

While AUD/USD did initially spike lower, indications that the RBA would take a more neutral stance in coming months allowed the currency to recover. Meanwhile, the Japanese yen edged lower on a slight pick up in risk appetite, as evidenced by the 3.3 percent gain the Dow Jones Industrial Average and nearly 4 percent rise in the S&P 500. Indeed, there is still a relatively tight inverse correlation between the yen and US equity indexes. During the next 24 hours, GDP results due to be released at 19:30 ET tonight are expected to show that growth in Australia slowed further during Q3 to a 0.2 percent pace, down from 0.3 percent in Q2. While the economy has been relatively resilient compared to countries like the US and the UK, the Reserve Bank of Australia has already said that they expect growth to cool further and bring down inflation pressures, which is why the bank slashed interest rates. Meanwhile, the Reserve Bank of New Zealand has cut rates during their past three meetings, each more aggressive than the last, and the same is expected for the RBNZ’s next rate announcement on Wednesday at 15:00 ET. Indeed, a Bloomberg News poll shows that economists anticipate that the central bank will slash rates by a whopping 150 basis points to a 5-year low of 5.00 percent.

Following the bank’s last rate decision, RBNZ Governor Alan Bollard suggested that future rate cuts would depend on data confirmation of easing inflation pressures and “how the global financial developments play out.” Thus far, economic data in New Zealand has signaled cooling price growth, as the RBNZ’s 2-year inflation expectation survey fell to 2.7 percent from 3.0 percent in Q4 and food prices fell negative for the first time in 14-months during October.
Meanwhile, financial market conditions have only deteriorated, leaving the odds in favor of a sharp rate cut by the RBNZ that could trigger declines in the New Zealand dollar on Wednesday. Traders should beware though that if the RBNZ's policy statement suggests they may leave rates steady during their next meeting, the Kiwi could actually gain.

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Paulson Urges Chinese to Continue Currency Reforms

2008-12-02T21:48:00.000-08:00

Paulson urges the Chinese to continue allowing their currency to strengthen against dollar
Treasury Secretary Henry Paulson, preparing for his final round of economic talks with China, said Tuesday that Beijing must keep letting its currency rise in value against the dollar to help ease trade tensions with the United States.

American manufacturers contend that China's undervalued currency, the yuan, gives Chinese companies an unfair edge and is a key reason for the record trade gap between the two countries. A cheaper yuan makes Chinese goods less expensive for American consumers and U.S. products more expensive in China.

Paulson also said he was not concerned that China, now the largest foreign holder of U.S. government bonds, will start selling that debt to try to lower its level of dollar-denominated investments.

Answering questions after a speech on China, Paulson said the Chinese had been "very responsible partners and stakeholders and have continued to stand by us and stand by our debt."

The Treasury Department announced last month that China has surpassed Japan to become the largest foreign holder of U.S. Treasury securities -- owning nearly $1 of every $10 in U.S. public debt.

Paulson's remarks came before his departure for the fifth round of high-level talks known as the Strategic Economic Dialogue, to take place Thursday and Friday in Beijing. The discussions will cover a range of issues, from China's currency to expanding a 10-year plan for a cooperative effort on energy and pollution control in the two countries.

Paulson praised the Chinese for allowing their currency to rise in value by more than 20 percent against the dollar since July 2005. But he said it was critical that the currency reforms be allowed to continue. The U.S. trade deficit with China widened in October to $27.8 billion. It was the largest monthly trade gap ever recorded with a single country.

Frank Vargo, a vice president of the National Association of Manufacturers, said his group is upset that the movement toward a stronger yuan relative to the dollar has stalled as the Chinese respond to pressure from their own manufacturers. Chinese manufacturers are facing declining export sales in the midst of the global slowdown.

"We are quite distressed about the movement of the yuan. It has been flat for a number of months, and now it is going the wrong way," Vargo said.

Though the yuan has risen 20 percent against the dollar since July 2005, the Bush administration has complained that the revaluation has not occurred quickly enough or gone far enough.

Chinese officials insist they are moving as fast as their economy allows. But as global demand has slowed, conditions have become more uncertain.

In trading Tuesday, the Chinese yuan fell to its lowest against the U.S. dollar in more than five months. That raised fears that the Chinese may let their currency weaken against the dollar in the current global slowdown as a way to support their own manufacturers. The drop Tuesday followed a record one-day decline against the dollar Monday.

Paulson did not specifically mention recent movements in the yuan. But he said it was important China not falter in its push to reform its currency, and to rely more on domestic demand than on exports to support Chinese economic growth.

"Making this shift will take bold leadership and decisive structural reforms to boost demand among households," Paulson said in a speech to the Word Affairs Council of Washington. "As I have said in the past, continued reform of China's exchange-rate policies is an integral part of this broader reform process."

In his remarks, Paulson said another major topic for this week's talks will be energy use and the environment. The U.S. hopes to sign an agreement for an environmental partnership between the town of Greensburg, Kan., which was nearly destroyed by a tornado in May 2007, and a town in China's Sichuan province that suffered massive damage from an earthquake in May.

The goal of the partnership, Paulson said, would be to encourage the rebuilding of both towns in environmentally sustainable ways.

In the leadup to the talks, which will include secretaries of Cabinet agencies from Agriculture to Labor, there was little expectation for breakthroughs in such key areas as currency rates or U.S. efforts to get the Chinese to allow more American financial firms to set up operations in China.

The strategic economic talks with China, which began two years ago, have been one of Paulson's key initiatives. High-level delegations from the two countries have met every six months for discussions on economic issues.

Paulson insisted in his comments that the talks have worked at bridging differences between the two countries. Still, they have failed to yield the major successes he had expected when they began in 2006.

Paulson, however, is hopeful that the new administration will continue the dialogue. He has discussed the issue with Treasury Secretary-designate Timothy Geithner, Paulson's aides said.

President-elect Barack Obama has not said whether he favors continuing the current format for discussions. But in a Sept. 15 letter discussing U.S.-China relations, Obama said he believed "high-level dialogue among economic leaders in both countries" was important to achieve success on issues that divide the two nations.

Chinese officials have said they expect the dialogue to continue in an Obama administration.

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Australian Economic Growth Drops to Lowest in 8 Years

2008-12-02T21:38:00.000-08:00

Australia’s Gross Domestic Product disappointed expectations, adding 0.1% in the three months through September versus forecasts calling for a 0.2% increase. The annualized result registered as predicted at 1.9%, down from 2.7% in the year through the second quarter. This puts the pace of economic expansion at the slowest in 8 years.

The Reserve Bank of Australia moved to slash borrowing costs by a whopping 3% since early September to check the slide in growth. However, yesterday RBA Governor Glenn Stevens suggested rate cuts are over for the time being even as he lowered borrowing costs by another 100 basis points. Stevens said that “a major easing in monetary policy…together with spending measures announced by the Government and a large fall in the Australian dollar” will support demand over the year ahead.

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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.
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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.

Dollar Rises Against the Yen in Night Trading

2008-12-02T21:30:00.000-08:00

The dollar rose against the Japanese yen late Tuesday night. The greenback gained to 93.43 yen from the 93.22 yen it bought in late afternoon trading.

On Monday, the dollar was worth 93.40 yen.

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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.

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*Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Dollar Dips versus Euro in late Trading

2008-12-02T21:22:00.000-08:00

The dollar dipped against the euro late Tuesday night in New York. The 15-nation currency traded at $1.2715, up slightly from $1.2697 in late afternoon trading on Tuesday.

On Monday afternoon, the euro fetched $1.2672.

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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.

[Full White Label]

We provide 'full White Label partnership' to match the needs of the regulated companies and organizations that have a legal authorization to hold clients' funds. Our online trading platform is the most qualified online trading software in addition to an experience based infrastructure, but the full White Label partner is responsible for all administrative work and of all contact with their clients, i.e. opening of accounts.

[Limited White Label]
Limited White Label partners are also offered to access our customized online trading platform but their customers have to open a direct forex trading account with [ForexGen] Investments. Consequently, limited White Label partners could be not regulated by a financial authority as they will not hold customers' funds. This service permits the customer to manage his trading actions freely without vast administrative paperwork.

Dollar lower vs pound in late trading

2008-12-02T21:01:00.000-08:00

The dollar fell against the pound in late New York trading Tuesday night. The pound rose to $1.4918 from $1.4876 in late afternoon trading on Tuesday.

On Monday afternoon, the pound was worth $1.4910.

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Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.

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About ForexGen

2008-06-19T02:57:00.001-07:00

ForexGen LTD 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 LTD serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

ForexGen principals
ForexGen LTD 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.

forex Broker

2008-06-19T02:56:00.001-07:00

The main participants in forex market can be divided into the following types: banks, some commercial companies and some foreign currency brokers.
Broker is the intermediary who helps you access to foreign exchange (forex). Similar to a stock broker, these agents can also provide advice on forex trading strategies. This advice to clients often extends to technical analysis and research approaches designed to improve client forex trading performance

What is Leverage ?

2008-06-19T02:55:00.000-07:00

This is the one characteristic that makes ‘FOREX’ trading so appealing trading more money than you have in your account. It’s of course a double sword and creates risk. The bulk traders fail at ‘FOREX’ trading
because the over leverage their positions. For example, for every
$1,000 you have, you can trade 1 lot of $100,000. So if you have $7,000
they may allow you to trade up to $700,000 of forex. Leverage to deal with it you need to enter & exit at optimum.

Forex Terminology PIP

2008-06-19T02:53:00.002-07:00

Every trader in the Foreign Exchange ‘FOREX’ hopes to make a profit from something called ‘PIP’. It may sound silly, but gains in pips can potentially make you over wealthy .Take your time with this information, as it is required knowledge for all Forex traders.

What is a PIP ?

Pips stands for ‘PERCENTAGE IN PIONTS’. In the Forex trading, a ‘PIP’ is a unit of measurement which represents the smallest change in the price of currency or a currency pair. In the stock markets this is a classified as a ‘POINT’. As a result, some folks refer to pips as points. Pips are the last decimal point in an exchange rate or currency pair.

Pip Value Calculator

2008-06-19T02:53:00.001-07:00

Pip value constantly changes according to the market currency price for indirect currency pairs.

Kindly enter the current value of the bid/ask of your desired pair in the price box then press retrieve button to get the pair pip value in dollar

Instructions

You may input any prices you need in the second column of the table. If you are using non-standard lots, you may input the size of your lot in the bottom cell.

Quick Review

ip (or Points) is a term used in Forex market to indicate the smallest incremental move an exchange rate can make. Depending on context, normally one basis point (0.0001 in the case of EUR/USD, GBD/USD, USD/CHF and .01 in the case of USD/JPY).

Trading Profit/Loss

2008-06-19T02:52:00.001-07:00

The differential indicator is an indicator used to identify the profit/loss that would have been realized if any trader submitted multiple positions at the same time.

The indicator shows the rise and fall of the profit of positions opened at the red vertical line through a red graph line in a certain interval of time starting from the time of opening the positions and reaching to the current time, where each point is the total profit of opened positions at this time.

Multi Pair Chart Indicator

2008-06-19T02:51:00.001-07:00

The multi pair chart indicator allows putting multiple currency pairs on a host currency chart and draw the difference between the these currencies.

The multi pair chart is an indicator which represents more than one pair symbol, it creates further correlations between the pairs through hedging.

It simulates the expected relations between more than one symbol to be more useful and to facilitate the trading process.

ATS™ Features

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ATS™ Features

ATS™, offers traders the ability to open any number of positions at the same time, traders can choose whether to open a set of pairs together at the same time for hedging purpose or to open pair by pair when the used strategies confirms the entry, also the system provides the following features:

Ability to open a group of pairs according to hedging theory and correlations factors between different pairs.

Ability to determine using swing feature after closing the opened positions, trader can determine if the next positions of the same pair will be opened in the same direction of the first position or the directions will be reversed “swing between them”.

ATS™, offers traders the ability to close the opened positions together at the same time when they reache the predetermined profit/loss value, or close the positions one by one according to the determined stop loss, take profit, and trailing options , also the system provides the following features:

Ability to set stop loss in pips with any value to close the opened positions, no minimum or maximum amount is determined.

Ability to set take profit in pips with any value to close the opened positions, no minimum or maximum amount is determined.

Ability to set take profit in value to close the opened positions.

ATS™ offers traders the ability to have dynamic lots calculations, this feature is used to calculate the required lot to be opened for each pair without putting the account margin in risk, and this feature will be useful in gaining maximum reasonable profit based on the type of the account, deposited balance, and free margin of the account at any time

What Should be in Your Trading Plan?

2008-06-19T02:48:00.002-07:00

There is an old saying in business: “Fail to plan and you plan to fail.” It may sound strange somehow, but those who are serious about being successful in trading and aware of gaining many profits, including traders, should follow these words as if they were written in stone
If you have a written trading or investment plan, congratulations! You are in the minority. While it is still no absolute guarantee of success. If your plan uses
flawed techniques or lacks preparation, your success won’t come immediately, but at least you are in a position to chart and modify your course. By documenting the process, you learn how to avoid repeating costly mistakes and to learn from your mistakes in order to make profit.If you want to succeed you need to learn well how to manage your trading plan, because the plan is the base of a well trading, if you don’t follow a well trading plan, you will receive a disaster every time you enter the market.Trading in the markets is a battle of give and take. The real pro’s are prepared and they take their profits from the rest of the crowd who are lacking a plan or from those who don’t stick to their plans, give their money away through costly mistakes

ForexGen Solutions

2008-06-19T02:48:00.001-07:00

It’s more important that I progress as a risk-aversed trader. For newer traders, it’s very important for you to understand that learning methods to control your risk should be a priority. Making gains monetarily is obviously important but making gains and strides elsewhere are more important. When I first started trading mostly with demo accounts, I had some unbelievably profitable trades but my strategies were random and my risk and leverage too high. A lot of this is just pure luck and not going to take you to the next level. Your account balance shouldn’t be used as a guage for success. Some questions to ask yourself to guage your success may be:

Have you managed to minimize your risk and maximize your reward?
Have you maintained consistency?
Have you been able to control your emotions?
Have you developed a complete trading system that you’ve been able to follow without deviation?
If you haven’t been profitable, have you at least been able to turn those gushing drawdowns into slow bleeders?
For more information please contact us at www.forexgen.com

ForexGen Opens Doors for Complaints

2008-06-19T02:46:00.002-07:00

I haven’t been able to make any progress monetarily in about a month. I’m up about 4% this month but breaking my account balance all-time high has been a struggle. I’m pretty much stuck where I was around this time last month. I’m not all that concerned and shouldn’t be considering I was preaching patience a couple of days ago. It’s just that every time I open my trading platform, the account balance is just staring me in the face. Read more…

Forex Trading Education with ForexGen

2008-06-19T02:46:00.001-07:00

How To Learn Forex Trading To Become A Profitable Trader

If you are seeking to educate yourself about forex trading, most probably your main objective is to gain trading skills so that you are able to trade independently and to be able to create personal consistent wealth through forex trading. Most forex traders are independent traders or individuals who are trading from the comfort of their own homes and not institutional traders who are backed with large quantities of capital by commercial organisations or sponsored by large investing funds.
The distinction between private forex education and academic education
If you are an individual private forex trader, then what you need is a practical forex trading education that will encompass the practical aspects of trading and how to make money from your trades rather than an all comprehensive education involving the historical background of forex, the intricacies of price movements or the more mundane academic statistical studies of finance and currencies. So if you are someone entering into the forex market with the intention to make money from trading forex, then look for someone or a mentor or a trading course that can allow you to learn how to trade profitably.
As a wealth creator, this is what you should look out for in planning your own forex trading education or learning plan. Read more…

Money Manager with ForexGen

2008-06-19T02:45:00.001-07:00

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. Read more…

ForexGen LTD History

2008-06-19T02:42:00.001-07:00

ForexGen LTD 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 LTD 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.Read more…

MA Summary

2008-06-19T02:40:00.000-07:00

Moving averages are one of the most famous tools and also the easisest tool used by many traders.
We can find many types of moving averages .the 2 most popular types are: Simple Moving Average and Exponential Moving Average.• The simple form of moving average (SMA) will be the simple moving average, is formed by computing the average = price of a security over a number of periods• Exponential moving averages: EMA’s reduce the lag by applying more weight to recent prices relative to older prices.
• The best way to use moving averages is to plot different types on a chart so that you can see both long term movement and short term movement.
Visit : www.forexgen.com

SMA vs. EMA

2008-06-19T02:39:00.000-07:00

EMA:IT HELPS TO SHOW RECENT PRICE SWINGS AND FAST MOVINGSMA:HELP TO SHOW EASY CHART, AND ELIMINATE THE FAKEOUTS. IT’S UP TO YOU TO DECIDE WHICH ONE IS BETTER TO USE A LOT OF TRADERS PLOT DIFFERENT MOVING AVERAGES TO GIVE THE SIDES OF THE STORY. THEY SHOULD USE THE SIMPLE MOVING AVERAGE TO FIND WHAT IS THE OVERALL TREND, AND ALSO USE THE EXPONENTIAL MOVING AVERAGE TO FIND THE BETTER TIME TO ENTER THE TRADE TIME.Read More : www.forexgen.com

Exponential Moving Average (EMA)

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In order to reduce the lag in simple moving averages, technicians often use exponential moving averages (also called exponentially weighted moving averages). exponential moving average reduce the lag by applying more weight to recent prices relative to older prices. The weighting applied to the most recent price depends on the specified period of the moving average. The shorter the exponential moving average’s period, the more weight that will be applied to the most recent price.

For example: a 10-period exponential moving average weighs the most recent price 18.18% while a 20-period EMA weighs the most recent price 9.52%. As we will see, the calculating and exponential moving average is much harder than calculating an simple moving average. The important thing to remember is that the exponential moving average puts more weight on recent prices.
exponential Moving Average Calculation
Exponential Moving Averages can be specified in two ways - as a percent-based exponential

Simple Moving Average (SMA)

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the simple moving average is formed by calculating the average price of a security over a particular number of periods. While it is possible to create moving averages from the Open, the High and the Low data points, most moving averages are created using the closing price.

For example: a 4-day simple moving average is calculated by adding the closing prices for the last 4 days and dividing the total by 4.
11+ 12 + 13 + 14 = 50
(50 / 4) = 12.5
The calculation is repeated for each price bar on the chart. The averages are then joined to form a smooth curving line - the moving average line. Continuing our example, if the next closing price in the average is 15, then this new period would be added and the oldest day.
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Fibonacci Extension

2008-06-19T02:37:00.001-07:00

Fibonacci Extension
what is fibonacci and how to use it in the world of FX?

Leonardo Fibonacci was a 13th century mathematician who noted that there are certain ratios that tend to occur repeatdly in nature . The common ones that he identified were 38.2%, 50%, and 61.8%.
For example, the distance from your fingertips to your wrist is 38.2% of the distance from your fingertips to your elbow. There is overwhelming evidence of Fibonacci ratios operating throughout nature.
These are not always perfect, but surprisengly they work more than just often!! Many people have argued about why these work, but my opinion is that all the large institutions use them, so you might as well buy or sell at the same levels that they do and if these levels don’t hold you can get out with a small loss.

Fibonacci Retracement

2008-06-19T02:35:00.000-07:00

fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by Leonardo Fibonacci. However, Fibonacci ’s sequence of numbers is not as important as the mathematical relationships, expressed as ratios, between the numbers in the series. In technical analysis, Fibonacci retracement is created by taking two extreme points (usually a major peak and trough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels. Before we can understand why these ratios were chosen, we need to have a better understanding of the Fibonacci number series.

Fibonacci

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We should know from the beginning that the Fibonacci is a big subject and there are many ways to study the Fibonacci .there is a lot of types of the Fibonacci but we will show 2 types only: the Fibonacci retracement and extension.

The Fibonacci ratio can start from this number: 1, 1, 2, 3, 5, 8, 13, 21, 34
The number series starts from the number 1 then the number 2 and after that we add 1+2 we will get 3 ,it will be the third number ,then we add 2+3 we will get 5 and that will be the fourth number.
Fibonacci extension: the levels of Fibonacci extension will be 0, 0.382, 0.618, 1.000, 1.382, 1.618.many Traders can use the Fibonacci extension as profit taking level and when they watch the same levels ,they can buy or sell to enter the trade or cancel it, so this will become a due self-fulfilling expectation.

Channels

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There are 2 types of channels in the forex market :1-If you want to create a down channel, it may also be called a descending channel, you can simply draw a line at the same angle as the downtrend and after that move the line to a new place where it can reach the most recent both valley.

For the both channels ,it should be done at the same time to you to create the trend line.It may be a sell signal when the prices hit the up trend line and it can be a buy signal when the prices hits the down trend line

Trend Lines

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The trend lines are a popular and an important type in technical analysis for trend identification and confirmation, They are also one of the most underutilized as well.

There are two kinds of trends:Stock up trend: it can be used like a sell signal, deemed to be complete with the formation of a lower high or a lower low.Stock downtrend: it can be used like a buy signal , deemed to be complete with the formation of a higher low or higher high.

Support and Resistance

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The concepts of support and resistance are undoubtedly two of the most important and highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade.

Most experienced traders will be able to tell many stories about how certain price levels tend to prevent traders from pushing the price of an underlying asset in a certain direction.Most technical traders incorporate the power of various technical indicators such as moving averages, to aid in predicting future short-term momentum, but these traders never fully realize the ability these tools have for identifying levels of support and resistance

Lagging Indicators

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An index published monthly by the Conference Board that is used to confirm the direction of the economy’s movements in past months.

1. the value of outstanding commercial and industrial loans.2. The change in the consumer price index for services from the previous month.3. The change in labor cost per unit of labor output.4. The ratio of manufacturing and trade inventories to sales made.5. The ratio of consumer credit outstanding to personal income.6. The average prime rate charged by banks.
As it measures the economic activities of previous months, the Composite Index of Lagging Indicators is used as an after-the-fact way to help confirm economists’ assessment of current economic conditions.

Oscillators

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The Stochastic Oscillator comes in 3 flavors: Fast, Slow, and Full. The Stochastic Oscillator is a momentum indicator designed to show the relation of the current close price relative to the high/low range over a given number of periods using a scale of 0-100. It is based on the assumption that in a rising market the price(s) will close near the high of the range and in a declining market the price(s) will close near the low of the range. The Full Stochastic Oscillator is calculated by the formula:
Fast %K = ((Today’s Close - Lowest Low in %K Periods) / (Highest High in %K Periods - Lowest Low in %K Periods))

Leading vs. Lagging Indicators

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Leading vs. Lagging Indicators

Leading Indicators
An index published monthly by the Conference Board used to predict the direction of the economy’s movements in the months to come. The index is made up of 10 economic components, whose changes tend to precede changes in the overall economy.

These 5 components include:
1. the average weekly hours worked by manufacturing workers.2. The average number of initial applications for unemployment insurance.3. The amount of manufacturer’s new orders for consumer goods and materials.4. The speed of delivery of new merchandise to vendors from suppliers.5. The amount of new orders for capital goods unrelated to defense

The Million Dollar Question

2008-06-19T02:26:00.000-07:00

How do you figure out whether to freakin’ use oscillators, or trend following indicators, or both? After all, we know they don’t always work in tandem.
For now, just know that once you’re able to identify the type of market you are trading in, you will then know which indicators will give accurate signals, and which ones are worthless at that time.

Summary
There are two types of indicators: leading and lagging.
A leading indicator gives a buy signal before the new trend or reversal occurs.
A lagging indicator gives a signal after the trend has started .
Technical indicators into one of two categories: Oscillators and trend following or momentum indicators.

Double Bottom

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A charting pattern used in technical analysis. It describes the drop of a stock (or currency), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.
The twice touched low is considered a support level.
Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and volume on the ensuring advance should increase.

ForexGen Putting It All Together

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In a perfect world, we could take just one of these indicators and trade strictly by what that indicator told us. The problem is that we DON’T live in a perfect world, and each of these indicators has imperfections. That is why many traders combine different indicators together so that they can “screen” each other.

We urge you to study each indicator on its own until you know EXACTLY how it reacts to price movement, and then come up with your own combination that fits your trading style. Later on in the course, we will show you a system that combines different indicators to give you an idea of how they can compliment each other.

Everything you learn about trading is like a tool that is being added to your trader’s toolbox. Your tools will make it easier for you to “build” your trading account

Attention! Do You Have a Trading Plan?

2008-06-19T02:21:00.000-07:00

Are you interested in making a lot of profits? There is No need to answer - who isn’t? You can fill your mind with plenty of information, but without a good trading plan and the discipline to stick to it, you will NEVER be profitable.Any profitable traders have a trading plan and they were planning for it very well They also confident of there profit.

“If you fail to plan, you are planning to fail!”
The ideal trading plan model always use is as follows

Trading the News

2008-06-19T02:20:00.000-07:00

Is a popular technique in the forex markets … Everyone wants to trade the news as you can see currency pairs move dramatically within seconds after the release of major news like “The US Retail Sales” and others and it responds not only to U.S. economic news, but also to news from around the world. That’s easy money! Depending on how are you trading this news. So for those who want to trade news there are plenty of opportunities and you will be able to know different strategies through this lesson.Our goal is to make the most of your trading knowledge and we willl provide you with all of the steps needed to know how to trade the news.