US Dollar Strength May Hinge Upon Risk Trends Once Again

The US dollar ended the week mixed across the majors, as the currency tumbled against the British pound, which was strong across the board, but also slipped versus some of the commodity dollars on a brief pick up in risk appetite

The US dollar ended the week mixed across the majors, as the currency tumbled against the British pound, which was strong across the board, but also slipped versus some of the commodity dollars on a brief pick up in risk appetite. However, the US dollar’s biggest rally of the week was on Friday, after data showed that US non-farm payrolls fell by a whopping 524,000 in December and brought the cumulative total of job losses in 2008 to 2.589 million, the most since 1945. Meanwhile, the unemployment rate rose more than expected to a 16-year high of 7.2 percent from 6.8 percent. So why did the US dollar rally in response? There are a few reasons.

First, most of the major currency pairs remain within massive ranges, but major support levels for the US dollar helped to stabilize its decline. From a fundamental perspective, it is necessary to consider the fact that interest rates in the US can't really go any lower since the Federal Reserve has already cut the fed funds target to a record low range of 0.0 percent - 0.25 percent, and it is that interest rate dynamic (or lack of it), that is allowing the greenback to brush off this abysmal data. Furthermore, a sharp drop in the Dow Jones Industrial Average and surge in the Japanese yen on the same day suggest that risk aversion is lingering in the financial markets.

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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.

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The Sneaky Way to Managing Losses in Your Forex Trading

One of the cardinal rules of Forex trading is to keep your losses small. With small Forex trading losses, you can outlast those times the market moves against you, and be well positioned for when the trend turns around. The proven method to keeping your losses small is to set your maximum loss before you even open a Forex trading position. The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. With your maximum loss set as a small percentage of your Forex trading float, a string of losses won't stop you from trading. Unlike the 95% of Forex traders out there who lose money because they haven't applied good money management rules to their Forex trading system, you will be far down the road to success with this money management rule.

What happens if you don't set a maximum loss? Let's look at an example. If I had a Forex trading float of $1000, and I began trading with $100 a trade, it would be reasonable to experience three losses in a row. This would reduce my Forex trading capital to $700. What do you think those 95% of traders say at this time? They would reason, "Well, I've already had three losses in a row. So I'm really due for a win now."

They would decide they're going to bet $300 on the next trade because they think they have a higher chance of winning.
If that trader did bet $300 dollars on the next trade because they thought they were going to win, their capital could be reduced to $400 dollars. Their chances of making money now are very slim. They would need to make 150% on their next trade just to break even. If they had set their maximum loss, and stuck to that decision, they would not be in this position.

Here's a perfect illustration why most people lose money in the Forex trading market. Let's start out with another $1,000 float, and begin our Forex trading with $250. After only three losses in a row, we've lost $750, and our capital has been reduced to $250. Effectively, we must make 300% return on the next trade and that will allow us to break even.

In both of these cases, the reason for failure was because the trader risked too much, and didn't apply good money management. Remember, the goal here is to keep our losses as small as possible while also making sure that we open a large enough position to capitalize on profits. With your money management rules in place, in your Forex trading system, you will always be able to do this.

[ForexGen Demo Accounts Contest]

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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:
- 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

Three Great Reasons To Start Currency Trading

Most people shudder at the thought of Forex Trading because they think that it is very high risk trading because of the great amount of leverage involved. However the money making potential in Forex Trading is huge when compared to other financial instruments worldwide.

This article will highlight three great reasons why you should consider Forex Trading or at least a managed Forex Trading Account when considering between the multitude of investment instruments available on the market today.

Firstly, the forex market is the most liquid financial market in the world today. This means practically that even in a falling or rising market, there will always be a ready buyer or seller on the market. Most of us have been caught in situations where we want to sell a stock but there are no ready buyers in a falling market.

The great amount of liquidity in the forex market today, means that not only can you sell your currency fast but you can also acquire it fast as well and in rapid succession. That's one reason why George Soros managed to funnel large amounts of money through the several South East Asian currencies during the currency crisis and made huge amounts of money in the process.

Secondly, the forex market is a true global market meaning that it operates 24/7 during the weekdays. This means that if you really wanted to, you could trade through the night and the day. Thankfully there is forex trading software now that helps you monitor trades and hunt for good trading opportunities and when you just enter your trading strategy, and the robot takes over and closes your position for you. The trading platforms now are so robust that you can set your downside indicators to close your position when it falls below a pre-set number so that you do not lost money even while you are sleeping.

[ForexGen Demo Accounts Contest]

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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:
- 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

Let’s See How Many of us Will Succeed in Forex?

If you have chosen to open a live Forex account after 1-2 and up to 6 months of demo trading, your chances to successfully manage your live account are quite slim. Exceptions happen, but we speak about majority of Forex traders.

The reason why we made such verdict is because no matter how much you study Forex every day, 6 months is too little to gain all necessary experience and digest enormous amount of information about Forex trading, plus be able to test it long enough in order to confidently invest money relying on knowledge gained and start trading successfully.

Traders that were willing to dedicate about 1 year to demo trading had most likely been already demoing Forex for some time and gained some initial experience, that allowed to analyze the time needed for proper learning and research more realistically. These traders have initially higher chances to manage live accounts properly, but would need much more time to be able to achieve stable performance. Their risks of sooner or later losing it all are still high; therefore, unless they consider at least another year of practice and studying we may add them to our initial 68% group of risk. Total would be 85% now.

Again, why we are so strict bout the verdict? In any field professionalism is never achieved in no time. Students study for 5-6 years in universities to obtain a profession, a sport champion has to work on his body and skills for years before receiving his first gold medal.
Learning Forex in one year won’t make most of us financially independent.

The category "no need for demo" lists both: traders who voted for immediate opening of real account in Forex and learning while trading live, and traders who already had real accounts. This category was made to help maintaining quality of votes on other voting options.
And finally we have the remaining 6% of traders who planned to demo trade and practice for 2 years or more before going live. This small group has the highest potential to make it right and achieve its financial goals in Forex. We can only add here a well known wisdom: "Success in anything you do lies in hard work, continuous learning and passion for tasks set and choices made".

[ForexGen Demo Accounts Contest]

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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:
- 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

The Most Important landmark in the history of Financial Markets

At the end of the 70-s the free-floating of currencies was officially mandated that became the most important landmark in the history of financial markets in the XX century lead to the formation of Forex in the contemporary understanding. That is the currency may be traded by anybody and its value is a function of the current supply and demand forces in the market, and there are no specific intervention points that have to be observed. Foreign exchange has experienced spectacular growth in volume ever since currencies were allowed to float freely against each other. While the daily turnover in 1977 was U.S. $5 billion, it increased to U.S. $600 billion in 1987, reached the U.S. $1 trillion mark in September 1992, and stabilized at around $1.5 trillion by the year 2000.

Main factors influences on this spectacular growth in volume are mentioned below. A significant role belonged to the increased volatility of currencies rates, growing mutual influence of different economies on bank-rates established by central banks, which affect essentially currencies exchange rates, more intense competition on goods markets and, at the same time, amalgamation of the corporations of different countries, technological revolution in the sphere of the currencies trading. The latter exposed in the development of automated dealing systems and the transition to the currency trading by means of the Internet. In addition to the dealing systems, matching systems simultaneously connect all traders around the world, electronically duplicating the brokers' market.

Advances in technology, computer software, and telecommunications and increased experience have increased the level of traders' sophistication, their ability to both generate profits and properly handle the exchange risks. Therefore, trading sophistication led toward volume increase.
Regional reserve countries. Along with the global reserve currency – U.S. dollar, there are also other regional and international reserve countries.

In 1978, the nine members of the European Community ratified a plan for the creation of the European Monetary System managed by the European Fund of the Monetary Cooperation. By 1999 these countries, which constituted so-called Euro zone, have implemented the transition to the common European currency - the euro (see Figure 1.1).
The euro bills are issued in denominations of 5, 10, 20, 50, 100, 200, and 500 euros. Coins are issued in denominations of 1 and 2 euros, and 50, 20,10, 5, 2, and 1 cent.
The euro is a regional reserve currency for the euro zone countries and the Japanese yen – for the countries of South – East Asia. The portfolio of reserve currencies may change depending on specific international conditions, to include the Swiss franc.

[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