Economic Data Releases - Can You Successfully Trade Them? | ForexGen Tips

Economic data releases occur almost every day and can have a dramatic effect on the forex markets,

and indeed all major markets. They can cause wild swings and increased volatility which is great for

traders, but can you successfully profit from them as a forex trader?

Before I address that question, let me start off by talking about data releases in more detail. As a

trader the first thing you should do every day is consult an economic calendar to see what releases

are scheduled for the forthcoming day. This will allow you to determine when you should be out of a

trade if you don”t want to trade through them, or when to turn your computer on and be ready to trade

if you do wish to trade them.

The best economic calendar in my opinion is at Forex Factory as this tells you not only what releases

are scheduled for the day, but also the predicted and actual figures for each release, plus the

importance of each one and the effect that they may have on specific currency pairs.

Different data releases affect currencies in different ways. For example, interest rate decisions and

non-farm payrolls have a major impact on dollar currencies whereas other less significant data

releases will hardly have an effect at all and will remain little changed.

So it’’s best to arm yourself with all this information and be fully prepared for any scheduled

releases, but can you profit from them?

Well in my opinion I don”t think you can consistently make profits trading the news as soon as it’’s

released simply because it’’s extremely difficult to predict how the market will react to any given

news.

For example, sometimes you will get seemingly bullish figures and expect the currency to go up, but

it will do the complete opposite. Other times it will go up initially and then reverse as analysts

and traders digest the news.

It really is an extremely difficult way to trade the markets, particularly for the individual trader

working alone. Trying to second guess the market is a very dangerous game.

In my opinion there are far easier ways to trade the forex markets using solid technical analysis

methods. You don”t need to trade during those times when market-moving figures are announced because

all they will do is distort any technical analysis and make it very difficult to enter a trade with

confidence.

Furthermore I always believe it’’s best to exit trades in advance of economic data releases simply

because prices can move very fast and your stop losses may not get filled at the price you requested.

I”m sure there are people who can make profits from news releases, but in my experience it’’s

extremely difficult and akin to gambling in some instances.
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.

How To Separate Hype From Reality In Forex trading | ForexGen Tips

For most people who may be thinking of entering the Forex trading game some of the terminology can be

confusing. In fact there are many who don”t really understand what Forex is about to begin with. In a

nutshell, Forex or FX is a term that is used to describe the trading of multiple forms of currency

all over the world. Some want to get into FX just because they like the idea of how exciting and

exotic it sounds to be trading foreign currencies, but there are many risks and advantages involved.

For starters, the market for foreign exchange is enormous. There are over 100 times more trades than

the New York Stock Exchange with nearly two trillion trades every day! In addition to the incredible

volume, Forex trading is also almost entirely speculative, which gives it somewhat of a higher risk

than some may be accustomed to. Still another large difference is that unlike trading through a

central exchange like the NYSE, the trading occurs on the over the counter or OTC market. Trades like

these are completed directly between the seller and the buyer via telephone or online. One of the

biggest differences in my opinion that can be a positive or a negative is that the trading takes

place 24 hours a day in major cities all over the world, unlike the major stock markets which close

at specific times each day.

The main trading that drives the Forex market is called currency trading which is a trade where one

currency is bought and another sold at the same moment. This act of trading is known as a “cross” in

the FX movement. Some of the most traded currencies include the US dollar, the Australian dollar, the

British pound sterling, the Japanese yen, and the European Euro, with the US dollar accounting for

almost 90 percent of all currency trading. The next most popular currency is the Euro, which is

involved in almost 40 percent of all trades and gaining popularity all the time.

The values of the currencies fluctuate daily in reaction to news reports on changes in inflation,

interest rates, gross domestic product growth, trade and budget deficits and surpluses, as well as

many other economic factors. This is the reason you will see those who are highly involved in Forex

trading following the news reports very close and staying on top of breaking news 24 hours a day

through the internet and 24 hour cable news channels.

As you can see there are many differences between FX trading and regular stock trading and it is very

easy for a novice to lose a lot of money by not being informed. It is best to start out slow and

learn the business before investing a large sum of money.
Throughout our partnership with the industrial leaders, we are capable of delivering incomparable

quality of online currency trading service.
ForexGen services are all controlled by the international banking and financial regulatory standards.
ForexGen is continuously providing the Forex market's safest trading terms & conditions. Providing

professional currency trading services that meet our client's expectations is our first priority.

Demo Accounts-One Of The Best Ways To Get Started In Forex With ForexGen

One of the best ways to check out Forex trading and see if it is truly something that you like and

feel that you can make money in is to open a Forex demo account. This strategy allows you to view the

account online and see how the account would perform if it were a real account. It’’s kind of like

how the military plays war games where they can test strategies without losing any soldiers. In the

same way, you can use a demo account to make “pretend” purchases and sells just as if you were really

doing them. Through the wonders of modern technology, the software used for these accounts brings

realism to the account and shows whether you would have profited or lost at the end of your trading

day.

Here’’s a closer look at how this method works. Let’’s say that you start with an imaginary amount of

five thousand dollars in your demo margin account. After watching the news reports closely and

studying the currency markets, you think the U.S. dollar will increase in value versus the Yen. Since

your margin account allows you to buy at a ten to one margin you buy (theoretically) fifty thousand

worth of USD and sell fifty thousand dollars worth of the Yen. The difference between the two called

the spread is what gives you your profit.

So why would someone want to have a demo account instead of just jumping right in? It’’s quite simple

really; it makes it easier and less stressful to learn the strategies and techniques without risking

real money. It’’s like playing with Monopoly money! Why do you think pilots are trained in flight

simulators instead of real airplanes before they are allowed to get at the controls of an actual

aircraft? I can”t think of anyone who would want to attempt to fly a plane without spending quite a

bit of time in a flight simulator first, can you? Look at learning Forex trading the same way. You

wouldn”t want to risk your money on something that you know nothing about. So operating a demo

account allows you to learn the business without losing money. Achieving success in the Forex trading

market depends upon your own instincts and abilities. After trying a demo account, you may find that

you don”t have what it takes to be successful at this business. Or you may find you excel at it. It

is far better to find out with a demo account how you would fare with real money.

The vast majority of reputable brokerage houses offering Forex Trading make these accounts available

because they know that if you study and learn how to trade effectively you will be comfortable making

larger trades, which in turn will make them more money. Some charge for the service and some offer

them for free but even if you have to pay a small fee while you are learning it is a small price to

pay if you are able to learn the skills to earn huge profits in the Forex market.

How To Succeed In Online Trading|ForexGen Tips

Online trading is huge today with more and more investors opting to go online rather than stay with

the tradition way of trading involving loads of paperwork, fighting it out on the stock market or

haggling with the broker for lower rates of commission. Online trading allows you to trade anytime

you want, from anywhere you want.

But if you have never traded before and it is only after online trading was introduced that you

became interested on trading in stocks, then you must realize though the method of trading might have

changed the fundamentals of trading haven”t. So the first thing you need to know before you even

start trading are the basics of a stocks and shares. There are plenty of books on the subject which

will allow you to form preliminary ideas and give you tips on investing. Get a clear idea as to how

the stock market functions.

Then get a hang of how the markets have been performing over the last year or so. Which industries

have been on the rise, which are on the decline, and which are all set to show tremendous growth.

This background on stock market will stand you in good stead when you will be going through the

numbers and help you analyze and understand them better.

Online trading is not real time. This you have to understand. Yes your orders can be transacted in

matters of minutes or even a few seconds. But remember there are millions who today trade online. So

if you are trading on a particular stock there will be hundreds or even thousands who will be placing

orders of the same stock at the same moment. So even in seconds there can be huge troughs and crests

on the price of a particular stock. If you are unaware of such chances your plans can go haywire. The

best option in such cases is to place price limit orders. Then you wouldn”t be losing beyond what you

expect.

Online trading is the future of stock trading if it is already not the present. The positive about it

is that everyone can now participate on trading. But that also has a negative effect. Because of the

ease many will opt for trading without being properly prepared. And with so many investors without

knowledge as to how the markets work, the bigger players will have a field day. The market will also

lose its stability. So if you want to succeed do your homework.
ForexGen 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.

Highlights Of The Forex Market With ForexGen

One of the most important highlights of the forex market is that it is a 24 hour market.
Trading never stops, except on weekends of course. As the sun moves from one part of the world to another, so does action in the forex market.

This is a key factor to consider when designing a forex trading system or method. Depending on the period of the day you are trading in the market behaves differently.

Let’s look at some charts that will help you better understand this issue.

The following is a 5 minute bar chart of the EUR/USD pair. What is the dominating characteristic in this chart?

***chart***

Not hard to spot. Here we can see that the pair is simply moving sideways hence forming a range. More importantly, you can clearly see that the pair is moving not more than 7-8 pips from side to side. So, not only does the pair move in a range,
but a narrow range.

Why is this?

Why is the EUR/USD moving in such a narrow range? Very simple question for a very simple answer: This is because the above chart represents market action that happened within the Asian session. It is no a rule written on stone, but as forex traders we know that the Asian session means low volatility and sometimes liquidity. The natural outcome of this is that the market tends to range in this session.

Now take a look at the following chart and spot the important difference between the two:

ForexGen Analysis Of CAD/JPY

ForexGen provides its users with a full explained market analysis, fundamental or technical. ForexGen news centre could be your guide in making your calculations and forecasts for the coming period, and helps in analyzing fundamentals.

CAD/JPY: CURRENCY PAIR IN PLAY OVER THE NEXT 24 HOURS

The Canadian international merchandise trade balance is due for release at 8:30AM on Thursday. We believe that trade will be weak, which should weigh on the Canadian dollar. Technically, CAD/JPY remains within our “sell zone,” which is established by Bollinger Bands. As long as the currency pair holds below 101.25, which is key Fibonacci resistance, we could see a move back below 100 towards Friday’s low of 98.60.

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ForexGen Lingo

As in any new skill that you learn, you need to learn the lingo...especially if you wish to woo your love's heart.

You, the newbie, must know certain terms like the back of your hand before making your first trade.

Cross Currency

A pair of currencies traded in forex that does not include the U.S. dollar.

One foreign currency is traded for another without having to first exchange the currencies into American dollars.

Historically, an individual who wished to exchange a sum of money into a different currency would be required to first convert that money into U.S dollars, and then convert it into the desired currency; cross currencies help individuals and traders bypass this step. The GBP/JPY cross.