Technical Analysis Tips And Tricks | ForexGen

ForexGen studies past price and volume changes in order to build up simulations on future price movements. ForexGen's analysts mainly make use of charts and financial formulas to gather enough information used in technical price speculations.

Technical analysis tips and tricks from famous traders and hedge fund managers

There are a lot of interviews with the best traders available and some have even written biographies of their trading and philosophy. Here are some of their insights.

Paul Rabar is one of the legendary turtle traders educated by Richard Dennis. Rabar has revealed to his clients that he uses a risk management system that limits exposure in each trade, each market, each sector, and each account.

He also uses risk limitation by using extensive diversification of markets traded.

Another turtle trader, Michael Carr, has stated that if you have a good trading program, the number one priority should be longevity, staying in the trading game.

This means one should stick with the system, to be there to participate and benefit when the really outstanding market opportunities come along.

For Carr, that translates into developing exceptionally good money management system that limit the severity of drawdowns, making comebacks easier.

John W Henry, the owner of Boston Redsox and a legendary trader, believes in approaching trading in a mechanical and systematic way.

Many of his ideas in this regard come from W.D. Gann, who believed that man was mechanical and that if man was mechanical, markets should be predictable because of that underpinning.

John W Henry also believes in long term trend following as a method for making money on the financial markets, meaning that the trader is trying to stay with a particular trade for months or years instead of days and weeks.

One of his main pillars of though is that if you and your system can handle volatility, which some people can’t, you make more money.

Another tip can be derived from the trading style of Louis Bacon Moore, one of the best hedge fund managers in the world. According to those that knows his trading style, say that he puts an extreme importance on risk management, which has lead to very low variation and predictability on the funds returns.

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Trading Technical Analysis Information | ForexGen

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Technical and cycle analysis is a way to try to predict trends in the financial markets, by identifying cycles that repeat themselves.

Technical analysts believe that these market cycles exist, and there are two primary reasons given as to why the cycles form:

1) Fundamentals: cycles reflect lags that affect shifts in supply and demand.

In basic manufacturing terms, when prices rise, it pays for the manufacturer to increase production.

However, as there is a lag (new plants need to be build etc) to increase supply, the increased supply will hit the market at the same time, which leads to a fall in price, leading to cycles in the marketplace.

2) Psychological: cycles reflect the psychological response of traders to price swings.

The market move in one direction for a period of time. The longer the trend, the more anxious traders become to cash their positions and positioning their trades for a movement in the opposite direction.

Many traders are willing to cash their positions on the first sign of weakness on the trend, increasing the movement in the opposite direction, which leads to cycles.

One of the first ones to use cycles based technical analysis to make money was the famous Rothschild family in Europe, which used cycle analysis on the British interest rates. Their system included three cycles, including a 40 month cycle.

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Fibonacci Technical Analysis | ForexGen

ForexGen studies past price and volume changes in order to build up simulations on future price movements. ForexGen's analysts mainly make use of charts and financial formulas to gather enough information used in technical price speculations.

Fibonacci technical analysis is based on the fibonacci numbers and the golden ratio, which exhibits itself in the nature and seemingly, in trading charts.

There are many ways in which fibonacci numbers are used in technical analysis.

For example, many who use the fibonacci levels calculate them through drawing of a trendline between two extreme points (top/bottom) of a price movement and then dividing the vertical distance by Fibonacci ratios of:

- 23.6%,
- 38.2%,
- 50%,
- 61.8% and
- 100%.

These levels provide levels of either resistance or support, depending where the current price is in relation to the fibonacci level.

If, in a bearish trend, the price is dropping towards a fibonacci level, the fibonacci level acts as a resistance and any fibonacci level above the current price acts as a support level.

On the other hand, in a bullish trend, if the price is rising towards a fibonacci level, the fibonacci level acts as a resistance level to the price movement and any fibonacci level below the current price acts as a support.

In trading, those technical analysts who use chart reading based systems often focus on levels such as those from fibonacci, and see how a test of the level goes before making further decisions on how to invest.

A fibonacci resistance, for example, often provides a chart pattern of a 'double top', which to those using chart reading technical analysis may refer to a trend reversing pattern.

The fibonacci levels are calculated from historical price trends. It is up to the trader to decide which historical trends to use for the fibonacci levels.

Most traders recommend that you are consistent with the use of data on drawing the levels, meaning that you stay consistent on your usage of daily, weekly, or monthly, or intraday data, as an example.

One can also use the ongoing price movement as the basis for drawing the levels, where the two extremes are the bottom of the trend and the most recent top.

Some have dismissed anecdotal evidence of how price movements often seem to stop at fibonacci resistance and support levels as evidence of self-fulfilling prophecy, as the fibonacci method is one of the most popular ones available, and one of the easiest to use.

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Fibonacci Retracements | ForexGen

ForexGen studies past price and volume changes in order to build up simulations on future price movements. ForexGen's analysts mainly make use of charts and financial formulas to gather enough information used in technical price speculations.

Fibonacci retracements technical analysis refers to a move where an asset retraces portion of an original move and finds support/resistance from a fibonacci level, continuing to original direction of the move.

The fibonacci levels that are used in finding fibonacci retracements are found through drawing of a trendline between two extreme points and then dividing the vertical distance by Fibonacci ratios of

- 23.6%,
- 38.2%,
- 50%,
- 61.8% and
- 100%.

The indicators for Fibonacci retracement levels are very popular for both long term and short term day traders.

With the retracement levels, you can potentially find levels of entry or exit points to trades and additional lots on a pyramid system, target prices, or stop losses.

The Fibonacci retracements are often used together with other indicators, and some fundamental analysis based traders use these levels to determine either to buy on dips or sell on rallies, depending on the direction of the move.

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ForexGen Another Style Of Trading

How to Take Control in Forex Trading

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As a professional online trading service, ForexGen provides several facilities for all kinds of traders.

Forex Trading is not that easy, all FX traders before they enter this business, they think that they will be rich very quickly and make $20 000 in one or two weeks, but when they begin trading currencies they discover it is not true, it is not easy to make money especially when we work with money. Very tricky business, many of us think that there is a conspiracy planned by "THE BIG GUYS", they know what we think what we plan to do and they do the opposite to steel our money, many times we think to make the opposite of our decision (if I see the market is going up then I will sell). And we begin searching for someone to help us making at least 200 or 300 pips a month, probably many of us work with signals advisors who simply took our money and probably do not help us making decent profit. Many of us thought stop trading many of us quit FX trading but I think most of us will not quit easily because we see in it a golden opportunity to have our own business and make our fortune!

Foreign exchange is an opportunity to make a fortune and in same time it is an opportunity to loose our money, we can make a fortune if we knew how to handle Forex, if we don't know how to control Forex it will destroy us, so we must be stronger than it, and if we don't know how to control it with our own hands it will destroy us too. So how I can be stronger than this ferocious beast? It is simply by learning, observing, and practicing. The FX market will not go anywhere it will be trending and ranging for ever, so learn from experienced traders how they became that good, observe charts and look for common points look for the reason why the price change direction, and when you discover the reason which influence a currency you will have in your hand the first tool that gives you control. And each new thing you discover, try it on a demo account, see if it is valid and develop it. In this Forex article I am helping you to find your way, this Forex article does not give you the fish but it teaches you fishing. There is no conspiracy theory in this business, no big or small guys, we loose because we don't know, and the first thing we must do to become good traders is to admit that we don't know and we must always learn.

Some clues to learn

First of all you must know that you must use fundamental and technical analysis in conjunction, both complete each others, so don't rely on one and leave the other. Fundamental is one of the reasons which influence the market, so if you are in a long trade and suddenly the trading currency went down so go and see if a report was released and see what its forecast and what was the released data and compare this data to your chart and you will have your first tool to control your business.

Second, in my opinion all the technical indicators didn't help me at all, I tried all the combination nothing work, and indicators describe the status of the market but don't give you information about the next direction. I read a Forex article about a guy who describes his Forex Trading strategy in a Forex article, I was completely lost, he uses a combination of 12 indicators EMA340, SEMA890, EMA2900 etc: and he inserted FIBONACCI in it. I was totally lost. Even if his strategy worth 95% success I will not use it because I can control the market by using simpler techniques. So we don't need to seek indicators, only one indicator I use the Bollinger Bands which is the perfect weapon in my battle against Forex trading. So I want you to look at the Bollinger Bands and see how it affects a currency, focus on it and read well this Forex article and you will discover a lot of things, and you will have your second tool.

Third, suppose you are in a long trade and suddenly for no reason the Forex Trading price went down, there are no released reports it just turned down, this is weird. But weird things are those we don't understand, but if you observe your chart and go back several hours or days and drop a break line from higher swing points you will see that the price turns down because it reached that break line, you see there is no mystery. So this break line will be your Resistance and if price breaks it, it will continue going up, but going where and till when? Observe very carefully and you will learn as I did. And no need for midnight or afternoon candles, be simple as you can, that beast is not as ferocious as you think. So breakout is your third tool.

Fourth, what time frame to use, it is up to you to choose the suitable time frame, H1, H4, D1: I don't know, compare the charts and you will see the suitable time frame. Time frame is important and when you find it you will have your Fourth tool.

And that's it, I repeat observe your charts and focus and think in these clues in this Forex article and the more you think the more you discover, read Forex article, learn strategies and get foreign exchange books. And moreover, you can join ForexGen academy and learn more about Forex trading and making profits.

Online Forex Services | ForexGen

ForexGen strives to give incomparable professional and individualized trading services.
As a professional online trading service, ForexGen provides several facilities for all kinds of traders. Our trading service performance is based on respect and appreciation which is only achieved by offering intelligent trading tools for secure online trading.

Are These Simple Trading Mistakes Costing You Money In The Forex Market

The 2% rule is a powerful tool in Forex trading. By adopting this rule you`re using a strategy that decreases the size of your losses during losing streaks, an important consideration. There is, however one small caveat that you need to be aware of when using the 2% rule to calculate how many Forex shares you are going to buy. As you know, the number of shares you can purchase is determined by your maximum loss and the size of your stop. This means that by increasing your risk, you can also increase the dollar value of the position you open. By simply shrinking your stop size, that is by setting a tighter stop loss, you can increase the dollar value of the position you open.

To avoid a situation where you could end up with excessively large positions that may put your Forex trading float at risk, you can choose to introduce an extra rule. This rule would limit the dollar value of a position to be no more than a set percentage of your entire Forex trading float.

For example, you might decide that you`ll never open a position that has a dollar value of more than 25% of your entire Forex trading float. This rule would only be executed if, after calculating the formula that determines how many shares you buy, you find the dollar value of that position would greater than 25% of your float. If this happened, you would scale down the position to make sure it did not exceed that 25%.

The percentage that you decide upon will depend on the type of system you`re trading, the size of your float, and your personal tolerance for risk. Generally, smaller Forex trading floats might use 25%, and larger Forex trading floats might use as little as 10% or even 5%. There are no definitive numbers, and the percentage that you choose will depend on your personal circumstances.

Once this tendency is corrected for you will have all your money management rules in place, ready to control your risk in the Forex market. Now you need to take the next step. Test your system to find out which of the variables best suit you, remembering always that position sizing is the most significant part of any system design. It is the linchpin of money management. Once you`ve tested your system, and fine-tuned your rules, you will be well on your way to becoming a successful Forex trader.

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Winning in trading depends on using the right strategy and controlling all the moves.
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Forex Day Trading: How To Create Massive Wealth From Forex Day Trading

ForexGen introduces to all its users a free online academy that would aid them in either learning more about Forex market or in developing their strategies. It is a free academy available online; you can register and enjoy ForexGen services.

Until now, you may have never known how easy it is to make fast money from forex day trading, because nobody has ever given you the correct information, as I will in this article.

Most people from middle class make their money from investments in real estate, stock trading, bond trading, mutual funds, CDs, auction programs and various internet programs and other small businesses.

They may have never heard about day forex trading, which is where multi-millionaires and billionaires make their money.

Forex day trading is the most profitable and attractive investment opportunity because you can do it from home or office and from any country in the world.

In forex day trading, you don't need to do any marketing or selling or internet promotion to succeed.

In forex day trading, you don't need to spend thousands of dollars to do any internet promotion.

In forex day trading, you don't need any stocks or warehousing.

In forex day trading , all that you've to do is open an account with one of the brokers with as little as $300 or $2000.

Then follow simple instructions to buy and sell the currencies.

When the price of the currency is low, you buy.

In a few seconds or minutes, the price will go up, and you sell it and make a profit.

By so doing , in a day, you can easily make $500-$1000 by just buying, selling and trading these foreign currencies for about 3 or 4 hrs!

The more money you put in your forex day trading account, the more money you can make.

You can use $1 to control $200 investment in foreign currencies.
$200 to control $50,000 investment.
And $1000 to control $200,000 cash.

By registering on ForexGen, you create your ForexGen profile and you can go ahead and open as many Demo accounts, and live accounts as you need. All accounts can be created online and managed under your ForexGen profile. You can mix between Mini, Standard, Pro, Premium and No Dealing Desk accounts in one.

Getting a Forex Trading Education With ForexGen

ForexGen introduces to all its users a free online academy that would aid them in either learning more about Forex market or in developing their strategies. It is a free academy available online; you can register and enjoy ForexGen services.

Many Americans are interested in getting involved in forex trading. Before doing this, you should get a forex trading education. You should never get into forex trading without forex trading education. With the proper forex trading education, you can be on your way to making a tidy profit.

First you need to understand what forex trading is. Forex is short for foreign exchange. Forex trading is the simultaneous exchange of one countries currency for another countries currency. By doing so at the right times, you can gain a profit. A forex trading education can teach you how to do this.

The first part of a forex trading education is to learn the market background. The foreign exchange market is always changing. With forex trading education, you will learn how to monitor these changes to be beneficial for you.

The next part of your forex trading education is to learn about risk control and risk management. You learn to control yourself and not over invest at the thrill of the chance of making money. You will also learn how to cut your losses (how to exit losing trades before your losses exceed your limits). You will always lose money when you first begin forex trading. This part of your forex trading education is absolutely crucial to whether you will make it big or end up in a hole.

Another important part of your forex trading education is to learn how to open and manage your forex trading account. Your forex trading education should first have you practice with a demo account. This way you learn the ropes by practicing forex trades with play money. There is no risk involved, but it is just as realistic as the real thing. Your forex trading education should also let you know when you are ready for the real thing. You should then, and only then, open up a live forex trading account.

Active traders who wish to enjoy the Forex trading advantages can work with the ForexGen account. ForexGen provides leverage up to 500:1 and 100,000 - 10,000 Trade Sizes. Open an account with as little as $250. ForexGen offer swap-free accounts. Swaps will not be applied to ForexGen accounts. ForexGen will not charge a fee of per traded lot round turn.

There are many ways to get a forex trading education. The best place to get a forex trading education is online. There are many free websites available that let you open free demo accounts to practice your forex trading. There are also free seminars that are available at random times. The best thing to do is to get some advice from someone who is a current forex trader. They can give you some down to earth insight on the subject of forex trading.