Self-Paced With Forexgen

ForexGen traders use fundamental analysis, technical analysis, quantitative analysis and sometimes a combination of all three to make their trading decisions. Fundamental analysis involves the use of economic, financial and political news to determine trading decisions. Technical analysis involves the study of Charts to predict future price movements based on past price patterns and trends. Quantitative analysis consists of the use of preset statistical models and properties in quantifying price formations such as averages, ret cements as well as identifying oversold and undersold situations.

Most small FX traders lose money when they start forex trading. This is because their average profits are smaller than their average losses. There are several reasons for this:

• The trader may have selected a timeframe which results in brokerage expenses being too high as a proportion of profits. This usually means trying to trade very short term positions, which is difficult and costly.
• Not having a system that determines stop losses. The trader may use a stop loss which is too tight, and results in frequent exit from positions that end up being profitable, or stop losses that are too large and result in erosion of capital.
• Taking small profits instead of large profits. The tendency is to let losses go, but immediately realise small profits. Even professional traders are wrong in over 50% of positions so small profits will not compensate for losses.
• Focussing on predicting the market rather than managing risk. The trader’s efforts go into trying to forecast where the market is going rather than concentrating on identifying existing trends and determining stop losses.

It is very difficult to ALWAYS make a profit. Often a position will move against you, despite your best efforts. You need to know how much adverse movement you need to tolerate before deciding that you have got the direction wrong, and closing out your position at a loss. You need to rely on your trading system to get you out of losing positions without you having to exercise your own judgement. To be a successful trader, you will need to take losses - this is one of the most important currency trading basics. Losses will occur.

ForexGen now has a trading new client called MultiTerminal. The MultiTerminal is intended for simultaneous management of multiple accounts, for which is mostly helpful for those whom manage investors' accounts and for traders working with many accounts simultaneously.