Wednesday, December 31, 2008

The Dollar's Decline Continues To Break Records

Next Fed Cut Looking Deeper And Deeper
The dollar can’t seem to catch a break. The beleaguered currency marked yet another momentous drop against most of its liquid counterparts, chalking up its biggest three day sell off in four years. And, leading that charge was the EURO vs US Dollar, which marked a fresh record high for the third consecutive session. Feeding the insatiable desire to sell dollars was yet another round of scheduled and unscheduled disappointing fundamentals. Federal Reserve Chairman Ben Bernanke’s testimony before the House today more or less covered the same dour highlights from yesterday’s delivery to the Senate.

The few notable differences between the two speeches came from the Q&A. In response to one particular question, the central banker suggested that it would be “fair” to suggest it is tougher for the Fed to respond now than it was during the last recession back in 2001. This may have been taken to mean by some that the economy is heading for another recession; but what Bernanke was actually referring to was the unwanted mix of quickly receding economic growth and the elevated level of front-line inflation.

While Bernanke continued to talk up the struggling greenback, the market was also absorbing disappointing readings from the fourth quarter GDP revisions and a round of second tier employment numbers. Annualized growth shirked forecasts for annualized expansion to accelerate slightly by holding at its five-year low 0.6 percent clip. Noteworthy shifts from the sector breakdown were downward revisions to personal consumption, business investment, commercial construction and government spending.

[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.

Nationwide Reports 0.5% Fall in House Prices

House prices fell for a fourth consecutive month in February despite a further cut in interest rates, taking the annual rate of house price inflation down to its lowest in two years, a survey showed on Friday. Nationwide, the mortgage lender, said house prices fell 0.5 per cent this month, lower than expected, and revised down its estimate of prices in January, taking the annual growth rate from 4.2 per cent in January to a two-year low of 2.7 per cent.

Fionnuala Earley, Nationwide’s chief economist, said the drop in annual growth could overstate the pace of cooling since it partly reflected a surge in prices in February 2007. However, prices on Nationwide’s index have now dropped 1 per cent in the last three months compared with the previous three months. Continued weakness in house prices comes as little surprise, given continued worries over credit conditions, housing affordability and a slowing economy. Recent data suggest that numbers of mortgage approvals and enquiries from new buyers remain well below levels at the start of last autumn. “It seems clear that we will not see recent rates of growth, in either the UK economy or housing market, repeated for some time,” Ms Earley said. But she noted that, unlike the situation in the US, stocks of property on UK surveyors’ books were not yet “at levels that have been consistent with systematic falls in prices in the past”.

The downbeat tone of the nationwide report sent the euro to its highest level against the pound. Expectations of further interest rate cuts from the Bank of England helped the euro rise to Euro Pounds £0.7648 compared to £0.759 on Thursday
.
Nationwide is forecasting house prices will remain flat over the whole of 2008, while many economists are predicting year-on-year price falls. Kate Barker, the monetary policy committee member, recently said prices were likely to decline in the short term relative to earnings, while falls in nominal terms could not be ruled out. The weak outlook for house prices did not stop the property company Rightmove being bullish on growth prospects. The website owner argued online advertising was the most cost-effective way for estate agents to reach potential buyers in a tougher market. The number of advertisers on its site had grown by 18 per cent last year, contributing to a 77 per cent rise in pretax profits to £31.4m, Rightmove said.

[ForexGen Introducing Brokers]

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

WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?

* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.

In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.

Individualized service

[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ForexGen
incomparable to any other rival.

Credit Risks

Credit risk refers to the possibility that an outstanding currency position may not be repaid as agreed, due to a voluntary or involuntary action by a counter party. In these cases, trading occurs on regulated exchanges, such as the clearinghouse of Chicago. The following forms of credit risk are known:

1. Replacement risk occurs when counterparties of the failed bank find their books are subjected to the danger not to get refunds from the bank, where appropriate accounts became unbalanced.

2. Settlement risk occurs because of the time zones on different continents. Consequently, currencies may be traded at the different price at different times during the trading day. Australian and New Zealand dollars are credited first, then Japanese yen, followed by the European currencies and ending with the U.S. dollar. Therefore, payment may be made to a party that will declare insolvency (or be declared insolvent) immediately after, but prior to executing its own payments.

Therefore in assessing the credit risk, end users must consider not only the market value of their currency portfolios, but also the potential exposure of these portfolios. The potential exposure may be determined through probability analysis over the time to maturity of the outstanding position. The computerized systems currently available are very useful in implementing credit risk policies. Credit lines are easily monitored. In addition, the matching systems introduced in foreign exchange since April 1993 are used by traders for credit policy implementation as well. Traders input the total line of credit for a specific counterparty. During the trading session, the line of credit is automatically adjusted. If the line is fully used, the system will prevent the trader from further dealing with that counterparty. After maturity, the credit line reverts to its original level.

Dictatorship risk. Dictatorship (sovereign) risk refers to the government's interference in the Forex activity. Although theoretically present in all foreign exchange instruments, currency futures are, for all practical purposes, excepted from country risk, because the major currency futures markets are located in the USA. Hence, traders have to realize that kind of the risk and be in state to account possible administrative restrictions.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Interest Rate Risk

Interest rate risk refers to the profit and loss generated by fluctuations in the forward spreads, along with forward amount mismatches and maturity gaps among transactions in the foreign exchange book. This risk is pertinent to currency swaps, forward outright, futures, and options (See below). To minimize interest rate risk, one sets limits on the total size of mismatches.

A common approach is to separate the mismatches, based on their maturity dates, into up to six months and past six months.
All the transactions are entered in computerized systems in order to calculate the positions for all the dates of the delivery, gains and losses. Continuous analysis of the interest rate environment is necessary to forecast any changes that may impact on the outstanding gaps.

[ForexGen Academy]


If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX’ market, [Forexgen] has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills. No hard expressions, no buzz words, and no rocket science language are used throughout these lessons.
How to Get Started?

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

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

Risks By The Foreign Exchange on Forex


Exchange rate risk.


As it was mentioned, the trading on the Forex is essentially risk-bearing. By the evaluation of the grade of a possible risk accounted should be the following kinds of it: exchange rate risk, interest rate risk, and credit risk, country risk.

Exchange rate risk is the effect of the continuous shift in the worldwide market supply and demand balance on an outstanding foreign exchange position. For the period it is outstanding, the position will be subject to all the price changes.

The most popular measures to cut losses short and ride profitable positions that losses should be kept within manageable limits are the position limit and the loss limit. By the position limitation a maximum amount of a certain currency a trader is allowed to carry at any single time during the regular trading hours is to be established. The loss limit is a measure designed to avoid unsustainable losses made by traders by means of stop-loss levels setting.

[Why ForexGen]


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

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

Tuesday, December 30, 2008

The Advantages Of Trading Alone

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

Currency Trading vs. Casino Gambling

The first aspect of our leverage myth refers to the belief that a high leverage can work in favor of the trader, and even compensate for losses in periods when trading does not give the expected results. A trader that is aware of what leverage can do for him may tend to increase the size of his trades as losses accumulate, hoping for a recovery in the very last moment. This approach can only work against the trader, and usually leads to margin calls and huge losses in trading accounts.
Whenever a trader tries to apply a casino player mentality to trading (on purpose or not), the probability of his success is in fact much lower than if he were gambling in a casino with a 50%/50% chance. The explanations are complex, and we cannot go into details here (our money management courses explain this thoroughly). Still, something is certain: the higher we set the leverage, the more our trading resembles casino betting. And I doubt any serious forex trader would like his results to be a matter of sheer luck…

OK, so why is high leverage dangerous? First, it gives the trader the power to boost his results beyond all reasonable boundaries, making the very idea of a trading plan ridiculous. Why should one try to achieve consistent results when with only ONE, highly leveraged trade, anyone can double his account size overnight? That may of course be true, but the real question is: while it may be possible to do that, how PROBABLE is it? And, most important, which is the RISK associated to such an approach? We are not talking about a 50% chances of success in this case, but in fact something closer to 20%… Again, I doubt that any trader would confidently go into the market while knowing that the probability of his success is somewhere around 20%… Trading on very high leverage is actually not at all like casino gambling: it is much worse in terms of risk/return!

[ForexGen Live Account]

The live/real account is provided to those clients who may have some experience in the online trading.

[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

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.

How Does This Affect Your Forex Trading Account?

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%

[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.

Forex Market Daily Interest Rollover

In the spot fx market, trades settle in two business days and open trading positions held at time of rollover are automatically rolled over by the forex broker to the next settlement date, the open trade position is swapped for a new position expiring the following settlement date at 5pm EST rollover. This is also known as "tomorrow, next day" or simply "tom next."

For example, if you buy 200,000 Euros on Monday, you must deliver 200,000 Euros on Wednesday. On Wednesdays, the amount added or subtracted to an account as a result of rolling over a position tends to be around three times the usual amount. This "3-Day" rollover accounts for settlement of trades through the weekend period.

[ForexGen Introducing Brokers]

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

WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?

* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.

In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.

Individualized service

[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ForexGen
incomparable to any other rival.

Limit Order and Stop Order

This is an order to buy or sell a given currency at a pre specified exchange rate or better, and can be used to enter or exit trades. It “limits” the price at which you are willing to trade at. When a Buy Limit order is placed, the trade cannot be executed at a price that is higher than the specified limit price. Therefore the buy limit is placed below the current market price. It can be used to obtain a better entry price when looking to go long, or used to close out or exit an existing short position at a profit.

When a Sell Limit order is placed, the trade cannot be executed at a price that is lower than the specified limit price. Therefore the sell limit is placed above the current market price. It can be used to obtain a better entry price when looking to go short, or used to close out or exit an existing long position at a profit. When using limit orders to exit existing trading positions, long or short, it is usually associated with pre-determined trading targets.

This is also an order to buy or sell a given currency at a pre specified exchange rate and can also be used to enter or exit trades. It is activated when the specified exchange rate, in this case the stop price, is reached. This is a very useful order, in that it is placed on the opposite side of the current market price than the limit order.

When a Buy Stop order is placed, the order cannot be placed at a specified price that is lower than the current market price. Therefore the buy stop is placed above the current market price.
In this way it can be used to enter a new long position when the price of a given currency breaks above, “a price break-out”, a certain rate or it can be used to limit a loss in an existing short position. When a Sell Stop order is placed, the order cannot be placed at a specified price that is higher than the current market price. Therefore the sell stop is placed below the current market price.

In this way it can be used to enter a new short position when the price of a given currency breaks below, “a price break-down”, a certain rate or it can be used to limit a loss in an existing long position. As briefly mentioned above the stop order can also be used to stop a loss or protect profits, when the price of a currency moves against a trading position. This is why it is also referred to as a "Stop Loss" or “Protective Stop” order.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Monday, December 29, 2008

Swiss Economy Shows Signs Of Contracting, Oil Rises On Middle East Violence

Fundamental Headlines

• Israelis Launch More Attacks – Wall Street Journal
• Weaker Dollar Worries Japan, Germany - Wall Street Journal
• Europeans see euro trumping dollar – Financial Times

• Crude Oil Rises After Israeli Attacks on Gaza Roil Middle East – Bloomberg
• U.S. Corporate Profits Probably Fell for Sixth-Straight Quarter – Bloomberg


• EURUSD – French final 3Q GDP printed at 0.1% confirming preliminary reports that the country avoided a technical recession. The French economy grew on the back of increased consumer spending due to lower oil prices and in turn inflation. A 1.7% increase in Imports helped reverse the 0.3% decline from the prior quarter. Meanwhile, Italian business confidence fell to 66.6, which was the lowest since records began in 1992. Despite the improved growth numbers in France, the region is still showing signs of weakness and if businesses continue to cut workers than domestic growth could significantly fall. Discuss the topic and your trade ideas in the EUR/USD Forum.

• GBPUSD – U.K. households put £5.7 billion into their home’s according to the BoE’s housing equity withdrawal report. It was the largest amount since records began in 1970 as falling hoe prices and tight credit markets have limited the desire and ability for homeowners to pull out equity from their homes. The is a clear indicator that future consumption of big ticket items like vacations and cars will continue to decline adding to the already dour outlook for consumer spending. Discuss the topic and your trade ideas in the GBP/USD Forum.

• USDCHF – Switzerland’s KoF leading indicator fell to -0.369 from a revised -0.04, which was the lowest in more than five years. The reading indicates that the Swiss economy will most likely contract in the coming months as demand from its biggest trading partners the U.S. and Europe weakens as they face recession of their own.

[ForexGen Academy]


If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX’ market, [Forexgen] has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills. No hard expressions, no buzz words, and no rocket science language are used throughout these lessons.
How to Get Started?

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

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

Sunday, December 28, 2008

Agriculture Futures Trade Higher on the CBOT

Wheat, corn, oats, soybeans trade higher on the Chicago Board of Trade; livestock futures fall

Agriculture futures rise on the Chicago Board of Trade.
Wheat for March delivery gained 17 cents to $5.9925 a bushel; March corn rose 14.25 cents to $4.1225 a bushel; March oats advanced 12.25 cents to $2.31 a bushel; and March soybeans jumped 37.5 cents to $9.565 a bushel.
Meanwhile, beef and pork futures fell on the Chicago Mercantile Exchange. The U.S. Department of Agriculture on Friday posted to its Web site 30 U.S. meat plants from which Mexico suspended purchases Wednesday. Among those affected are a Plant City, Fla.-based Smithfield Packing Co. facility, Sioux Falls, South Dakota-based John Morrell & Co. and a number of Iowa-based Tyson Fresh Meats Inc. plants.

February live cattle lost 2.22 cents to 86.1 cents a pound; March feeder cattle fell 2.8 cents to 91.75 cents a pound; February lean hogs were down 1.9 cents to 58.95 cents a pound; and February pork bellies slipped 1.15 cents to 88.45 cents a pound.

[Why ForexGen]


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

We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support. We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus. Let's prove to you that you have taken the right step by choosing our partnership.

Thursday, December 25, 2008

When Is a Trend Not a Trend?

When it’s a range. A trading range or a range-bound market is a market that remains confined within a relatively narrow range of prices.

In currency pairs, a short-term (over the next few hours) trading range may be 20 to 50 pips wide, while a longer-term (over the next few days to weeks) range can be 200 to 400 pips wide. For all the hype that trends get in various market literature, the reality is that most markets trend no more than a third of the time. The rest of the time they’re bouncing around in ranges, consolidating, and trading sideways. Although medium-term traders are normally looking to capture larger relative price movements — say, 50 to 100 pips or more — they’re also quick to take smaller profits on the basis of short-term price behavior.

For instance, if a break of a technical resistance level suggests a targeted price move of 80 pips higher to the next resistance level, the medium-term trader is going to be more than happy capturing 70 percent to 80 percent of the expected price move. They’re not going to hold on to the position looking for the exact price target to be hit.

[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

Wednesday, December 24, 2008

La. Wish List on Storm Recovery: Don't Forget us

Still recovering from hurricanes Katrina and Rita, La. sends Obama a message: Don't forget us

More than three years after Katrina and Rita, and with billions of federal dollars already committed for recovery, Louisiana still has major requests -- and complaints -- pending on a wish list for the next president as rebuilding from the storms continues.
Louisiana's post-Katrina wish list for the next Congress and incoming Obama administration, lengthened by 2008 hurricanes Gustav and Ike, boiled down in a transition brief to one essential message: Don't forget us.
While progress has been made since Katrina and Rita lashed Louisiana in 2005, "our state still suffers an extreme housing crisis with affordable rental property hard to come by and billions of housing and infrastructure repairs yet to be completed," the Louisiana Recovery Authority said in the brief dated Dec. 8 and which the LRA provided a copy of last week.

The state's wish list for the Katrina and Rita aftermath include an extension of federal disaster housing assistance, including rental subsidies, set to expire March 1.
It also includes a call to push back by two years, to December 2012, a deadline to finish housing projects benefiting from tax credits due to the sour national economy. And there's also a call for establishment of a "blight removal fund" to help speed cleanup of thousands of derelict properties that are seen as stalling reinvestment in some devastated communities.
Louisiana also may seek a congressional appropriation if it can't come to more favorable terms with the Federal Emergency Management Agency on the level of Katrina damage to New Orleans' former public hospital for the poor, Charity. The state believes it's due $492 million; FEMA's offered $150 million.

Signs of Katrina's destruction remain in hard-hit communities of New Orleans and neighboring St. Bernard Parish. Hopeful signs -- new, elevated houses, reopened businesses -- give way to eery desolation in vast stretches of the Lower 9th Ward.
Abandoned apartment complexes blight slow-to-return neighborhoods in eastern New Orleans. Some houses still bear brownish-yellow water lines and the tattoos left by searchers in Katrina's frantic aftermath.
But progress is being made: In New Orleans alone, officials claim hundreds of millions of dollars in infrastructure projects are planned, under way or now completed. Hundreds of millions of additional dollars are lined up for neighborhood rebuilding and economic revitalization.

"The evidence of the recovery is going to get stronger and stronger as time goes on," said Mayor Ray Nagin.
But he also worries about "the people side of issues" -- affordable health care and improved mental health services in a community where he says many still grapple with post-Katrina trauma.
In his own letter Nov. 26 on the city's outstanding needs, directed to House Speaker Nancy Pelosi, Nagin listed terminal improvements at the city's commercial airport; upgrades at the train and bus depot used as part of hurricane evacuation plans; and water and sewer system work among the "ready-to-go" infrastructure projects, independent of Katrina, that he believes merit consideration for inclusion in a stimulus package.

"In the next Congress, your continued support of our ready-to-go infrastructure, as well as other priority issues" -- including rebuilding the city's health care and criminal justice systems, devastated by Katrina, and reforming the federal act that governs disaster recovery -- "is critical," Nagin wrote.
President Bush's hurricane recovery chief, retired Maj. Gen. Doug O'Dell, said in a recent interview that he thinks the federal government has provided ample resources to Louisiana and Mississippi for recovery -- and that a key task now is putting that money to work.
Of the $4 billion for permanent infrastructure work that FEMA set aside for Louisiana, $1.2 billion has been paid to the local level by the state, which has an accounting system of its own for the dollars.
One reason is the huge volume of work due to Katrina. Another, according to the state, is continuing frustration in getting FEMA to agree to what costs it will cover so cities have a clearer idea of what they can put out to bid.

FEMA spokesman Bob Josephson said there's often too much focus on a final dollar figure instead of on the overall scope of what needs to be done. He said the goal remains to cover "all actual and eligible costs."
O'Dell, who began in the post earlier this year and whose office is to be phased out early next year, began sit-downs with local, state and federal officials several months ago. His goal: to break through logjams and speed major projects.
While he calls FEMA's $150 million offer for Charity firm and all that's allowable under the federal law governing disaster recovery, he believes there's a potential public-private solution to the Charity fight.
The state's hurricane recovery chief, Paul Rainwater, wants to take his case for the $492 million to the Obama administration or Congress.

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Tuesday, December 23, 2008

British Pound And Euro Technical Outlook


British Pound Technical Outlook


At the risk of sounding repetitive, sideways price action in the British Pound/US Dollar leaves our bias exactly unchanged. “The British Pound has found a short-term base against the US Dollar, holding highly-contested support near the psychologically significant 1.4700 mark. Its recent price formation likewise looks vaguely like an inverse head and shoulders pattern, and a break above 1.5500 would signal that a more medium term reversal is likely. Shorter-term, the British Pound looks to challenge previous spike-highs at the psychologically significant 1.5000 mark.”

Euro Technical Outlook

Our outlook for the Euro against the US Dollar effectively remains unchanged. After massive rallies that swiftly took it to multi-month highs, the Euro/US Dollar is likely to continue its correction before any further ascent. As it stands, the pair remains in a very tight short-term trading range, and the absence of any real speculative interest on a holiday-shortened trading week suggests we may see similarly lackluster price action through the very short-term. Our bias remains to the downside, but a hold of near-term support at 1.3825 suggests that the pair could drift higher or trade sideways until further notice.

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Monday, December 22, 2008

German Consumer Confidence Holds Steady Despite Deteriorating Outlook

Alleviating price pressures have offsets the deteriorating outlook for the economy as the German GfK consumer confidence held steady at 2.1 in January, while the December reading was revised down from 2.2.

Fundamental Headlines

• AIG Nears Sale of Hartford Steam Boiler – Wall Street Journal
• GM Prepares Ground for Post-Holiday Talks With UAW - Wall Street Journal
• Christmas shut-down in Silicon Valley – Financial Times
• China's Central Bank Lowers Benchmark Rates for Fifth Time in Three Months – Bloomberg

• Toyota Forecasts Its First Operating Loss in 71 Years – Bloomberg

• EURUSD – German import price fell for the fourth consecutive month in November as the index slips 3.4% from October, while the annual figure fell 1.3% from the previous year, after reaching a high of 9.3% in August. The sharp decline in import price inflation is mainly due to lower oil prices and the base effects from food prices. Excluding energy, prices rose 3.2% from previous year, after rising 4.1% in October. Alleviating price pressures have offsets the deteriorating outlook for the economy as the German GfK consumer confidence held steady at 2.1 in January, while the December reading was revised down from 2.2. Meanwhile, fading demand from home and abroad continued to take a toll on the Euro-Zone as industrial new order fell at a record pace of 15.1% in October despite expectations for a 9.8% decline. Risks for deflation paired with mounting growth concerns should allow the European Central Bank to ease policy further policymakers carryout their mandate to ensure price stability.







• USDJPY –
The Bank of Japan monthly economic report downgraded the growth outlook for the economy and voiced strong concern about the downside risks to growth as they noted “conditions are likely to become more severe in the immediate future.” Meanwhile, earlier today, Japan posted its second consecutive trade deficit in November, which was led by a record 26.7% drop in exports. The statements suggests that economic activity will deteriorate further as global demands falter, which would only drag on the export-driven country going forward.

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