Wednesday, August 6, 2008

ForexGen Provides up to 50 Times the Leverage of Stocks

Forex Brings Profit in Bear and Bull Markets In the foreign exchange market, there is no short selling restriction.There is potential for profit in currencies regardless of which way the market moves.Forex always involves selling one currency to buy another, so there is no structural bias to the market.

Forex Provides up to 50 Times the Leverage of Stocks Foreign exchange trading with Forex Capital Management can give you up to 50 times the leverage of your stock trading accounts.


For every US$1,000 you invest in stocks, you gain control of at the most US$2,000 worth of shares. But with Forex Capital Management, margin of only US$1,000 gives you control of a currency trade of up to US$100,000 in currencies.


ForexGen`s Cross Currency

A pair of currencies traded in forex that does not include the U.S. dollar. One foreign currency is traded for another without having to first exchange the currencies into American dollars.
Historically, an individual who wished to
exchange a sum of money into a different currency would be required to first convert that money into U.S dollars, and then convert it into the desired currency; cross currencies help individuals

What Tools Do I Need to Start Trading Forex?

A computer with a high-speed Internet connection and all the information on this site is all that is needed to begin trading currencies.How much money does it take to open a real money trading account?

If you’re a new student of FOREX, you should first practice with a free practice account, often called “demo trading,â€‌ using “pretendâ€‌ money. When you feel ready to trade with real money, you can open a “miniâ€‌ account with as little $250 USD, although we recommend starting with no less than $1000-$2000.

ForexGen LTD History

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.

Exponential Moving Average (EMA)

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 CalculationExponential Moving Averages can be specified in two ways - as a percent-based exponential moving average or as a period-based exponential moving average.

Simple Moving Average (SMA)

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) = 12.5The 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.

Visit : http://www.forexgen.com

Fibonacci Extension

Fibonacci Extensionwhat 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.


ForexGen`s Channels

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 With ForexGen


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 derutilized 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 With ForexGen

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 Of ForexGen

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.

scillators Of ForexGen

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

Leading vs. Lagging Indicators Leading IndicatorsAn 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.