How To Be in The safe side ? | ForexGen.

Just to be on the safer side, to start with one must invest in forex trading only the money that they can spare. This has to be considered only as a secondary source of income. It is not advisable to invest your entire savings in this trade as it involves risk. Moreover, forex trading should not be made as your main source of income at least until you settle well with the trade and master it.

Another important rule of thumb is to go steady with the profit margin and not to wait for too long either to make more profit or to salvage any loss. You will be able to make money if you adhere to these basics.

ForexGen | The largest financial market in the world

Have you ever thought of buying or selling money? It sounds kind of funny, but there is a way for you to do just that in the Forex market. Forex is a nickname for what is more formally known as the foreign exchange market. The foreign exchange market is the largest financial market in the world. It is estimated that somewhere between 2 and 3 trillion dollars worth of currency is exchanged every day! To put this in perspective, the New York Stock Exchange (NYSE) averages roughly $50 billion dollars in volume per day.

This means that the Forex market is roughly 50 times the size of the NYSE! The Forex market is a pure market and free from any external control. It is considered a perfect market since the price of a currency is based solely on the supply and demand of a particular currency. So, what exactly is exchanged on the foreign exchange market? Cold, hard cash. Well, more accurately bits of data that represent tangible currency, but the essence of Forex is trading one country’s currency against another. Let’s explore this further.

ForexGen | USD/JPY

The USD/JPY trade is a good example of a nice simple trade. I wasn’t initially all that excited about the trade as the 89’s had moved into the 144’s area and was causing congestion on the 4 – hour chart.But as the TI broke I started paying attention to the 30 – minute chart.When the 30 – minute started breaking down it had all the looks of a solid break. This will come with experience.
You will develop a sense for when a break is real or false. Using the rules will help you stay out of trouble.

ForexGen Online Currency Trading

Online Currency Trading - Futures Market
Currency futures are specific types of forward outright deals which occupy in general a small part of the Forex trading market. Because they are derived from the spot price, they are derivative instruments. They are specific with regard to the expiration date and the size of the trade amount. Whereas, generally, forward outright deals those that mature past the spot delivery date will mature on any valid date in the two countries whose currencies are being traded, standardized amounts of foreign currency futures mature only on the third Wednesday of March, June, September, and December.Moreover, currency futures provide several benefits for traders because futures are special types of forward outright contracts, corporations can use them for hedging purposes. Although the futures and spot markets trade closely together, certain divergences between the two occur, generating arbitraging opportunities. Gaps, volume, and open interest are significant technical analysis tools solely available in the futures market. Yet their significance extrapolates to the spot market as well.For traders outside the exchange, the prices are available from on-line monitors. The most popular pages are found on Bridge, Telerate, Reuters, and Bloomberg. Telerate presents the currency futures on composite pages, while Reuters and Bloomberg display currency futures on individual pages shows the convergence between the futures and spot prices.

When UK's Away, Pound Comes Out To Play | ForexGen

U.S. Dollar Trading (USD) received a major boost through a sizable cable sell off during the Asian session dragging down all the majors against the greenback. Sentiment slowly reversed during the remainder of the day picking up speed as US equities tumbled on reports another US bank failed and speculation of large write downs in Q3. July Existing Home Sales supported rising 3.1% to 5 Million from 4.85 Million in June. In the U.S. share markets, the NASDAQ was down 49 points (-2.03%) and the Dow Jones was down 241 points (-2.08%). Crude Oil closed up $0.50 ending the New York session at $115.10 per barrel. Looking ahead, the Case Shiller Home price index is forecast to drop -0.8% in June. Conference Board Consumer Confidence is expected to increase to 53 from 51.9 in August. July New Home Sales are expected to remain 530K.

The Euro (EUR) came under pressure falling in sympathy with the large falls in Cable before reversing as US equities turned south. Oil was unable to maintain gains and its pullback weighed on the single currency into the US close. Overall the EUR/USD traded with a low of 1.4696 and a high of 1.4809 before closing the day at 1.4755 in the New York session. Looking ahead, German GDP Q2 expected at -0.5% along with Consumer Confidence expected at 2 down slightly from 2.1. Also released, IFO Index forecast down slightly to 97.1.

The Sterling (GBP) lead the fall in the Asian session as stops below 1.8500 were cleared inducing an 80 pip fall to multi-year lows. Support was found in the European session although trading was light as UK was away on a bank Holiday. USD weakness during the US session turned the rebound into a rally but gains were pared to end the day roughly where we began. Overall the GDP/USD traded with a low of 1.8405 and a high of 1.8590 before closing the day at 1.8530 in the New York session.

Far East Time Zone | ForexGen

New Zealand trade deficit hit 11- month peak

NZ trade deficit in July hits an 11-month peak, driven by high priced oil imports overshadowing flattening export picture. Annual deficit narrows slightly, but data overall falls short of market expectations.

The New Zealand dollar slipped to a 10-day low on Tuesday as investors avoided risky high-yield currencies amid renewed concerns about global credit markets.
NZ dollar falls through the USD 0.7000 level from its local opening around USD 0.7040, and slides through support levels to touch a session low of USD 0.6960, lowest since August 15th, after selling against the yen and as U.S. currency extends gains.

Asian Market Update with ForexGen

Forex: Range-trading and consolidation in thin conditions continues to be the main theme in currency markets, and the buck continues to look strong. Traders picked up on an article written by The Telegraph's Ambrose Evans-Pritchard, who suggested that China has resorted to stealth intervention in the currency markets to amass USD. 'A study by HSBC's currency team in Asia has concluded that China's central bank is in effect forcing commercial banks to build up large dollar reserves, using them as arms-length proxies in a renewed campaign of exchange rate intervention,' he wrote. If Evans-Pritchard's theory turns out to be correct, it not only raises questions about the sustainability of the greenback rally, but also highlights the adverse impact of a rising CNY on China's exporters. EUR/USD broke below minor hourly support at 1.4720 in the early Asian morning, but the pair has since then found support around 1.4700, near yesterday's low.

Traders heard rumors suggesting that the sovereign name that sold EUR/USD above 1.4800 yesterday might be buying on dips, limiting further downside for EUR/USD.

New Zealand's trade deficit deteriorates more than expected: (NZ JULY TRADE BALANCE: -781M V -538M expected, prior revised to -207M from -223M; Imports: 4.2B v 4.0B expected, 3.81B prior; Exports: 3.42B v 3.45B expected, 3.59B prior) The deficit for the full year to July was NZ$4.4B, or 10.9% of total exports, but the figure is lower than the deficit of NZ$6.3B recorded for the year to July 2007. The NZD dropped sharply in the hours after the release, with NZD/USD moving all the way down to an 11-day low of 0.6963. New Zealand's annualized trade balance has been in deficit since July 2002, and continues to be a drag on the NZD.

Dollar Mixed On Plunging Stocks | ForexGen

The dollar traded mixed Monday as US stocks plunged 2%, led by losses in AIG, as investors worried over the financial sector and credit market. US July existing home sales rose more than forecast but homes available for sales rose to a new record, indicating further price declines. The euro fell following a report the International Monetary Fund cut its 2008 and 2009 growth estimates for the eurozone. After touching a 2-year low in thin trading as London was closed for a bank holiday, the pound later recovered to above the 1.85 support. The Australian and Canadian dollars declined as metal prices fell and oil prices increased only modestly.
The USD/JPY fell on increased risk aversion as US stocks led by financial stocks dropped despite a successful Freddie Mac debt auction. The pair was also pressured by Bank of Japan Governor Masaaki Shirakawa's comments that Japan is likely to avoid a serious economic downturn. The pair is in an uptrend but unable to penetrate the 110-area resistance. If it is penetrated, the USD/JPY will move significantly higher. Support exists in the 107-area.