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.

Forex trading strategy

No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.

Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.

The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.

Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.

Discretionary Trading vs. System Trading

There are two main types of traders in the financial markets…discretionary traders and system traders. A discretionary trader will apply any approach that they see fit for the current market conditions while a system trader will use a defined set of rules to identify trading opportunities. I think new traders should learn as much as possible about fundamental and technical analysis, but should be thinking about developing a set of rules to determine when to trade.

The advantage of system trading over discretionary trading is that emotions do not have the same influence over the decisions that systems traders make, since the rules for entry and exit are clear. Discretionary traders will react to the current market conditions, but may rarely react the same for two trades in a row, increasing the chance of poor decisions by the less experienced traders. Also, the systems trader can go back to see if the rules they intend to use in their trading decisions are good enough to result in profitable trading over a series of trades. If it does, then the systems trader just has to make sure that they take the trades that their system identifies and make sure that they execute according to the rules. This can lead to consistent results and make it easier to take trades even after a few losses in a row. After all, you have historical results to back up your trading decisions. I think that the rules should cover at least a few key points to include these:

1. Determine whether you are looking for a buy or a sell.

2. Find your entry.

3. Identify your initial risk.

4. Find your exit.

In the FX Power Courses, we recommend trading in the direction of the trend on the daily chart and to use a risk:reward ratio of at least 1:2 on your trades. If you are risking 50 pips on a trade, then look for at least 100 pips in profit. This way, you only have to win about 40% of your trades to be profitable. But I think that if a trader uses the daily chart to identify the trend and then moves down to the 4-hour or hourly chart to find their entry and exit, a 50% win ratio of attainable. If you win more when you are right than you lose when you are wrong, this can lead to consistently profitable results. Next week we will take a look at different ways to identify the direction of the trend.