Australian Dollar Fell on Less Home-Loans | ForexGen

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The Australian dollar declined today on Forex during the Asian trading session after the report on home-loans showed a massive decline in the sector and the consumer sentiment index dropped to its lowest level since 1992.

The Aussie (a nickname for the Australian currency) declined against all other major currencies including the U.S. dollar, the yen and the New Zealand dollar today. Traders were giving up their last hope that the country’s central bank will go for at least one interest rate increase by the end of the year.

The report by the Australian Bureau of Statistics showed that the residential home-loans declined 7.9 percent in May. Experts expected only 2 percent drop and such a fast decline is a very bad signal for the Australian economy and currency.

The Westpac Melbourne Institute Index of Consumer Sentiment fell 6.7 percent in July — from 84.7 to 79.0. Now the index stands at its 16-year lowest value. This unexpected fall followed a 5.6% decline last month. The most probable explanation for such a sharp fall in the index this month could be high oil and gas prices.

AUD/USD declined from 0.9532 to 0.9519 today as of 11:07 GMT, the daily minimum was at 0.9475. AUD/JPY went down from 102.38 to 102.20 with daily minimum at 101.78. AUD/NZD shows the largest daily drop since June 12 — from 1.2664 to 1.2609, with a daily low at 1.2585.

Chinese Yuan at New High vs. Dollar | ForexGen

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The Chinese yuan continued its general appreciation trend today and rose against the U.S. dollar and other major currencies as the traders believed that the central bank will continue to use stronger yuan in its anti-inflation policy.

As the inflation soared to 8.1 percent annual rate in the first five months of the year, Chinese Premier Wen Jiabao has already said this month that battling the accelerating inflation is a government’s current main objective. Yuan’s appreciation against the dollar reached 2.1 percent in the past three months.

Market analysts expect China to continue to push forward the yuan’s rate against the U.S. dollar, but they expect the growth to be less straightforward — with more frequent fluctuations of the rate. The average expected rate range by the end of the year is 6.40-6.60 yuan per dollar.

Today USD/CNY pair dropped down from 6.8570 to 6.8464 in Shanghai Forex trading. The daily minimum was at 6.8456 — it’s the lowest level for the currency pair since the end of the yuan’s peg to dollar in 2005.

Indian Rupee Heading for Weekly Gain | ForexGen

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The Indian rupee is more likely to end this week in a positive zone against the U.S. currency as the investors expected that the companies’ good reports will attract traders and the conversion to local currency.

The India’s currency rose to its 2-week highest level today against the dollar after the report by the Infosys Technologies Ltd. showed results that exceeded the analysts’ estimate. A better than expected report of the second-largest software service provider could spur a rally on the Indian stock market next week.

If more companies report good figures for the second quarter, the rupee may get a better support as the stock prices went down this week and many investors may find them attractive to buy.

Foreign investment funds need to convert their currency (most often U.S. dollars) to the local rupees in order to buy the Indian equities. Such exchange helps strengthening the local currency against the dollar.

USD/INR rate lost 0.7 percent falling down from 43.151 to 42.845 this week. The weekly minimum was reached today at 42.717.

Dollar Gains against Yen, Euro, Pound | ForexGen

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The U.S. dollar showed the first daily growth against the euro in last four trading days after the U.S. Treasury Secretary Henry Paulson announced the government’s funding plans for the failing mortgage lending giants Freddie Mac and Fannie Mae.

The dollar also rose against the other major currencies, including Japanese yen and British pounds, after the arrival of the news that Paulson asked the U. S. Congress to buy stakes in both Freddie Mac and Fannie Mae to help them to restore after the crisis.

Federal Reserve will also offer those companies loans at a discount rate in order to supply them with the additional liquidity.

Short-term currency speculators are now restoring the dollar’s position after they sold this currency last week. News that the U.S. government is help the whole financial system through the Freddie Mac and Fannie Mae buy-out will draw more attention to the dollar.

EUR/USD dropped from 1.5961 to 1.5864 today as of 8:44 GMT with a daily low near 1.5841. GBP/USD also declined significantly today — it went down from 1.9910 to 1.9823 with the minimum at 1.9814. USD/JPY showed a moderate growth — it rose from 106.13 to 106.71 today.

AUD Gains on U.S. Credit Market Losses | ForexGen

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The Australian currency rose its highest value in last 25 years against the U.S. dollar as the credit markets continued to lose on the mortgage lending crisis in the United States.

The Australian dollar (also referenced as Aussie in the Forex slang) showed a fifth day of growth in a row and reached the maximum level against the dollar sine January 1983. Investors are afraid that the U.S. banks are short of capital and the attractiveness of the financial sector will continue to fall further.

AUD also rose against the Japanese yen, but the growth was moderate and it’s only second straight day of growth on AUD/JPY. Bank of Japan held the interest rate at 0.5 percent today, downgrading the economic growth forecast.

The good thing about Aussie, that is noted by many currency strategists, is that it remains almost untouched by the financial crisis in U.S., while such currencies as Great Britain pound and euro feel the echo of what’s happening in the States.

AUD/USD rose from 0.9714 to 0.9798 today as of 7:54 GMT. AUD/JPY opened at 103.13 today and is currently trading near 103.28 with a daily high at 103.42. AUD/NZD remains almost unchanged today, trading near its open level — 1.2714, but the intraday spikes are visible in both up and down directions.

The Truth About Fear And Greed While Trading | ForexGen

There are many phrases passed around about trading such as ”buy low, sell high,” but how many traders actually understand how ”fear and greed” drive the markets?

The surprising truth about fear and greed:

The pros and cons of simulated trading and the essentials of money management will both be discussed due to these aspects being related to the emotions of fear and greed in trading. Basically the aim of this article is to shed some light on emotions in trading and how they can be handled by traders.

Many people know that ”fear and greed” cause movements in market prices but it’’s wrong to think that these are always negative emotions.

Let’’s look at greed first. Greed is good! Well a certain amount of greed is good because it’’s needed to make speculators want to trade in the first place. A downside to greed is when it causes traders to ”chase the market,” for example by buying after a large sudden move higher when the market is overbought (i.e. overvalued).

You also need to avoid being too greedy when exiting your trades i.e. you should take profits where your proven trading method says you should.

Fear can be a positive and negative emotion too. Fear is a very good thing when it causes you to close out any losers with discipline where your system tells you to. But not too early or too late.

On the other hand, too much fear can stop you from even entering a trade the moment your system tells you to. To overcome this fear it’’s best to paper trade or make simulated trades for a while before dipping your toes in the water.

Paper trading is something that most traders don”t like doing before they first start to trade for real because they want to get out there in the markets pulling in money. But it’’s important to test your trading methods first by paper trading as this will help you ”pull the trigger” and commit more easily to trades when the time comes to trade for real.

The main problem with paper trading though is that you don”t get as exposed to the emotions of trading as you do when trading for real. Therefore, it can only prepare you to a limited extent.

Using safe money management techniques also helps you to overcome the fear of entering trades. The exact money management rules you use will depend on your trading system. Generally speaking a good rule is to use no more than a tenth of your initial trading capital per trade. Then only increase the amount you are risking per trade once you”ve doubled your initial trading capital.

To sum up, yes you can make big money from trading but it’’s a marathon not a sprint. You”ll need to have realistic expectations and not give in to too much greed. Some greed is good in this walk of life or you would never enter a trade! But not being too greedy means you should take profits where your proven method tells you to and of course, taking the occasional loss really isn”t a problem, just don”t let them run.

Gradually increasing the size of your trades as described is one of the keys to success. Finally, using a proven trading system will also reduce any fear when entering trades.

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10 Tips for Preparing for a Profitable Trading Day| ForexGen

Every great athlete, musician and professional where the stakes are high, knows that warm up and preparation can make a big difference to performance. Here are 10 tips -trading advice for preparing for your best trading day.

Mental Prep

1. Harness the power of intention

As you become more and more focused as a trader and as you learn to clear your emotions the power of your intention will become stronger and stronger. Begin the day by setting the intention that you will be successful, that you will be profitable, and that you will be safe. If possible visualize it, or feel that it will happen.

If any feelings or thoughts come up contrary to that intention (e.g. I lost yesterday perhaps I”ll lose today) go straight to the next point and clear that thought/feeling.

2. Clear limiting thoughts and emotions

Did anything happen yesterday or on previous trading days that is bothering you? Anything happening in your personal life that may be affecting your state of mind? Any recurring thoughts or feelings that come up during the trading day?

Read my blog post about emotional clearing - learn Core Transformation and clear that crapola out. And for any of you hardcore guys out there that are thinking this might be a bit touchy feely, I suggest you look at this in purely financial terms. Learning these techniques will help you get the success you want. And nobody needs to know!

3. Brain power

Make sure that you have exercised and eaten properly so that your mind is clear and fresh. Have the right snacks at hand so that you can keep your blood sugar balanced, so that you mind stays fresh and optimally focused.

Timing

4. Know when you are going to trade

You may say “How do I know when I am going to trade ahead of time?”. In response I”d say, “if your trading system doesn”t tell you when you are going to be trading ahead of time, then you are missing out on a huge advantage”. As you”ll see from the various blog posts I”ve written on cycle trading, I am convinced that time is as important a factor in determining entries as price. This is why I use a combination of cycles and harmonics in addition to regular technical analysis to determine entries.

Adopting this trading methodology was the single biggest contributing factor for me in becoming a consistently profitable trader, because I can calmly prepare for the times that I am going to trade and I can relax my focus during the times when I know I should be on the sidelines.

Practical Details

5. Are there any economic numbers being released today?

Know exactly what time they are and watch out if you are trading around these times as there may be some dramatic fluctuations in price movement. Unless your strategy specifically includes trading these numbers, many traders prefer to sit on the sidelines until the numbers shake themselves out.

6. Any significant business or world news today that may affect the markets?

Days when companies release earnings or when there are other significant events, make the market jumpy. You need to be forewarned so that you can decide either to sit out, or to be extra vigilant.

7. What happened in the markets overnight?

Same idea as point 4.

Discipline

8. Review your discipline committments

If you are someone that has problem over-trading or pulling the trigger, or if you have challenges following your system, make a list of discipline committments. List out those things that you commit to in terms trading discipline. e.g. I will only take trades on signals that my system gives me. Go through them before the trading day begins and refresh your resolution.

I had a lot of trouble with over trading in the early days. As I got absorbed in the market action it was like becoming hypnotized, my discipline went out the window. I actually had to set an alarm clock to go off and every 30 mins I would re-read my discipline committments to force myself to snap out of it, and refocus on following my trading rules.

9. Review you trades from yesterday and your trading journal

Reviewing you trades from yesterday is a great way to refine your skills and learn more about your strengths and weaknesses. If you had a day where you were able to execute your trades flawlessly based on your system (whether or not they ended up being profitable) you can consolidate the confidence that brings. If you had a day that left an emotional mark because of losses or mistakes you can go back to point 2 and clear them.

If you found that you were unable to execute your trades effectively its another opportunity to revisit your trading rules, your discipline committments, and refresh your intention that today you will trade your system.

Opening

10. Give thanks

Give thanks to your self, and to whatever power of the universe that you respect for the opportunity to trade - which is nothing more than an opportunity to master yourself.

The state of gratitude is a great inner state to approach the day. It buoys your optimism and invites to you the circumstances for success.

As the French say “Bon courage” - and have a safe and profitable day!

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Japanese Candlesticks And Foreign Exchange Trading | ForexGen

Do you think of anything when I say the phrase, “Japanese candlesticks?” In fact, this has a lot to do with trading in foreign exchange.

Candle charts (also called “Japanese candlesticks”) were originally created in Japan several centuries ago so that rice could be traded. Today, thousands of traders use the same charting “system” to track price movement.

Many people find that candle charts are easier to read than standard bar charts are, and therefore, they have become very popular. In fact, most Forex charts you see are in the format of Japanese candlesticks.

Candle charts are made up from the opening and closing prices, as well as high and low prices.

If a price opens lower than it closes (in other words rises during trading), a hollow candle is drawn on the chart (usually in white or green).

If a price opens higher than it closes (in other words falls during trading) a filled candle is drawn, usually in red or black in color.

Many online brokers today used the red and green color scheme rather than the white and black color scheme. Trends can be easily seen even by newcomers this way, because green candles signify price increases while red candles indicate that price has decreased.

It’’s not just designed this way for “newbies”, either. Any trader, regardless of experience or skill, needs to be able to have a clear visual system of evaluating data. It’’s essential to his or her decision making process.

However, moving on from the “history” of Japanese Candlesticks and how they relate to Forex trading - let’’s evaluate why they”re significant.

It’’s simple: The significance is that they represent our ability to bring simplicity to complex transactions without losing accuracy.

Whether the context is trading rice in the 14th century or trading the Euro/USD currency pair in 2008 from your high-speed connection, the fact remains that you don”t have to be an expert to understand and profit from complex markets.

The tools you need to succeed have already been developed. All you have to do is practice using them, and you”ll quickly be able to see how what would normally be complex can - through practice and experience - become as simple as any other basic task.

The only question is this: Are you willing to put in the time until it becomes simple?

Ancient rice traders depended on tools like this for their livelihood.

There’’s no reason why you can”t either. And it could end up being a whole lot more valuable than, say, rice.

ForexGen 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.

Profitable Cycle Trading System - Part 1 | ForexGen

First things first - this is not some revolutionary new method. Its in fact a very simple trading methodology based on a few time honored principles and indicators. The core of this method owes its origin to the work of Walter Bressert and is based on Walter Bressert’’s cycle indicators.

Principle 1

The trend is your friend - you”ve heard it a million times before and guess what - its true. This method only trades in the direction of the trend. Furthermore it only trades when the trend of both the short and medium term time frames are in the same direction (more on this later). Why? Because we want to pinpoint entries which move quickly in the direction of profitability. Entries in the direction of the trend can be precise. Counter trend trades are often sloppy and very difficult to time.

Principle 2

Time is as important as price - what does this mean? The large proportion of traders absorb themselves in following price action, looking for a set up which matches what they see. While this may work for traders that have learnt phenomenal levels of focus, detachment and self discipline, for the developing trader this way of trading often leads to hallucinations (seeing things that aren”t there), overtrading and getting caught in the chop. When we follow the principle that time is as important as price, we shift the emphasis of our focus. We place our focus on timing a trade setup, watching for the entry to set up using our timing indicators (cycles) and only when we see that the time is right do we look for price confirmation and a precise entry point.

The effect of this is:

1) We stay fresh because we can relax our focus when our timing indicators show that the time is not right.

2) We can avoid getting caught in the chop and all the frustration (and loss!) that doing so entails

3) We focus all our energy and concentration on effectively executing the signals that have the highest probability for success.

Principle 3

Use multiple time frames. In this method we trade on multiple time frames simultaneously. We use a short term chart (3 or 5 minute) and we use a medium term chart (13 or 20 minute). We only enter trades when those two charts are confirming each other (ie. That their trend and cycle direction are the same). We also use a longer term chart (60 or 102 minutes) to keep an eye on the bigger picture and we use a very short term (1minute) to effect our entries.

If the short term trend or cycle is up and the medium term trend or cycle is down, what is going to happen? They will fight each other and this manifests as chop. What happens in chop? It’’s very hard to time a precise entry, which is what we are all about.

What happens when the short and medium term trends/cycles are in the same direction? They support each other, they strengthen each other and this leads to decisive price movement.

The key here is to understand this: price moves up and down all day. We are going to let a lot of it pass us by - we don”t care. Why? Because what we are interested is pinpointing precise entries that will immediately move in our direction and give us a profit. You may see price moving strongly in one direction while you are on the sidelines, and you may say “damn, why aren”t I getting a piece of that?”. The question is could you have timed the entry or would you have placed 2 or 3 losing trades trying to get in, exhausting and frustrating yourself in the process? We are looking for ease, stress free entries that have a high probability of success.

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 Customer Indicators…

With ForexGen Customer Indicators as The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, Open Demo Account quotes are expressed as a unit USD per the second currency quoted in the pair. For example, a quote of USD/JPY 120.01 means that one U.S. dollar is equal to 120.01 Japanese yen.

With ForexGen News Center When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened.

ForexGen Enterprise Accounts If the USD/JPY quote we previously mentioned increases to 123.01, the dollar is stronger because it will now buy more yen than before. By ForexGen News Center

Patterns Recognizer | ForexGen

Technical analysts in the Forex market found that by observing the candlesticks patterns, there are recurring patterns on the candlestick charts. Such patterns are like recurring pictures on the candlestick charts and they tend to occur when a trend is about to end or reverse its direction. The patterns are a very good visual representation of the price movements and it give traders a good view of what is likely to happen next in the market.

Why are candlesticks patterns important?

The answer for this question is quite simple because candlesticks represent true status of what is going on in the market at the current moment. If a candlestick range is tight, this means that the market range for the trading day was very tight. If these narrow candle range appears after a strong up-trend, it may be a strong indication that themarket there is a bearish power have now entered the market more aggressively, and it’s strongly suggesting that the price may fall down.

Finally, candlesticks patterns can be easily used to determine potential reversals of the current trends in the market - most likely when used at the same time with other technical indicators. By constantly observing the candlestick patterns, traders can observe potential reversals of trends and have good opportunities to join the market with strong indication of what will go on next.

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