The Nature of Currency and the Stock Market

Currency and currency investments change just as the trends in the stock market do. There are

currencies which perform better in the stock market then others. There are several issues to take

into consideration when choosing which currency you should trade with.

The most important points are the volume of that currency and the liquidity. These are both important

because it will increase how quickly you can sell to ensure high profits or low losses. The most

commonly traded currencies besides the American Dollar include: Japanese Yen, Swiss Franc, British

Pound, and The Euro.

If you are a long term investor, a day trader, or a causal personal investor all these currencies

have good liquidity, good trend performance (short and long term) as well as daily peaking for day

traders.

While the focus by financial experts are usually on the big three: Euro, Dollar, Yen. There are other

considerations which can increase your profits for the short term and offer solid long term trends.

The activity of a particular currency can not be a guaranteed an indicator of future performance is

past performance. Below are a list of currencies and they associated “personality” in the stock

market:

British Pound - The British Pound has a much smaller volume than the Euro or the Yen. This means

short term trading with the British Pound needs to be kept to a minimum. Low opening interest rates

combined with small volumes can cause unstable price spikes. However, the British Pound does very

well in long term investing.

The Euro - If you are interested in and new to trading currencies, the Euro is the place to start. It

has good volume, a high open interest, and is volatile enough that it can offer profits to the day

trader.

The increasing popularity of the Euro makes it extremely safe to trade with it. The Euro is good for

experienced traders as well as new investors.

Japanese Yen - The Japanese Yen is good for any long term investing. It can offer volatility for the

day trader but it is much more erratic in it’’s daily behavior then the Euro and therefore much more

unpredictable. The volume and interest is also high.

Swiss Franc- The Swiss Franc is similar to the British Pound - thin volume and low open interest.

It’’s future viability is unknown because the Swiss economy is slowly becoming integrated into the

European economy. It does have good long term growth which is ideal for any currency investor looking

for long term trends.

Day trading with the Swiss Franc is out of the question, the volume is too low and there are no

substantial daily spikes to make it worth while

Australian and Canadian Dollar - Both currencies are great for long term trading because each has low

volume, low opening interest, and large price spikes. These currencies are good consideration if you

are a currency trader and are seeking diversification away from the larger more commonly traded

currencies.

A Brief Look at Forex Trading With ForexGen

Forex is the currency trading market which is the biggest and most quickly evolving markets in the

world. Currently it has a daily turn over of of 2.5 trillion dollars which is actually one hundred

times larger then the NASDAQ. Different markets are great ways to diversify your investments and

trade different goods and services. The same is true with the Forex market in which the “goods” are

actually currencies from around the world. Here you can buy Euros with American Dollars and sell

Japanese yen for Swiss Francs. The profit is make in the difference between currencies values.

To make a profit on the Forex market investors only need one rule - buy cheap and sell high. The

profit comes from the fluctuations within the exchange market for currency. The great thing about the

Forex market is that it has regular daily changes and a fluctuations of 1% is actually multiplied by

100. For example if the exchange rate of your pair of currencies increases by 0.7% in 5 hours, the

profit you make will be 70% of your initial investment. This can happen within a single day or a

single hour. Trading the Forex market is extremely secure because you can never lose more than your

initial investment. This is low risk when compared to the unlimited profit you could potentially

gain.

You can choose your pair of currencies and your volume whether the market is moving up or moving down

- and still make a profit. You can decide to buy Euro and sell dollar or buy dollar and sell Euro.

Additionally you do not have to physically have the currency you choose to buy and sell. The easiest

way to get started in the Fored market is to find a Forex market site, open an account, deposit your

money, and begin trading. Most companies provide you with training, support, and advice.

Once you have all the necessary research in hand you are ready to make your first trade. You need to

first select the pair of currencies that you wish to trade. Then you select the volume or the amount

of money you want trade. Then you must deposition the collateral needed for the whole deal, usually

about 1%. Most companies allow for a brief freeze period in which the consumer can adjust or cancel

their deal. While the deal is running you can monitor the status and check for additional trading

tips online. You still have the ability to change the terms, or cash out the profit to minimize loss.

Forex trading companies allow an automatic take profit option which allows the investor to preset the

rate at which you want to see and it will do it for you. That way you do not have to stay constantly

online to monitors your trade.

Forex is a great trading market for new investors. The specifics of the currency trade are fairly

straight forward and easily accessible to the general public. There is a low initial investment that

way new investors can begin small and as they feel comfortable and work their way up to larger

trades.
ForexGen.com is an online trading service provider supplying a unique and individualized service to

Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in

the Forex market.

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`s Steps For Traders

There are a lot of early steps that every Forex trader has to take before getting started in successfully trading the Forex markets.

The first and most obvious step is to actually open a Forex account so you have access to the market.

This is necessary so you can determine which Forex software and which online Forex platform you prefer, which are necessary to even open a “play money” or free trading account (always recommended for the beginner Forex trader as this lets you use real market information to test out your trading strategies without risking any real money).

ForexGen Outlook On NEW ZEALAND CUTS RATES

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.

NEW ZEALAND CUTS RATES, OUTLOOK REMAINS DOVISH

The Reserve Bank of New Zealand cut interest rates by 25bp to 7.75 percent. Since January, the New Zealand dollar has plunged 13 percent, reflecting slower growth and the market’s expectations for further rate cuts. The market is looking for another 100bp of easing by the RBNZ over the next 12 months and for that reason, we still expect the NZD/USD to break 65 cents. The terms of trade in New Zealand was better than expected, but a persistent drought has caused exports to suffer while high interest rates and a weak housing market has pushed New Zealand into its first recession in 10 years. According to RBNZ Governor Bollard, there could be more rate cuts. Although that would depend on inflation and the price action of the New Zealand dollar, he expects monetary policy to be less restrictive going forward and for the economy to contract in the third quarter.

Dark Australian economy

Even though the Australian dollar ended the US session positive against the greenback, it is well off its highs. Like New Zealand, the outlook for the Australian economy is gloomy. Despite an improvement in business confidence, consumer confidence has deteriorated. The combination of weaker economic data and lower gold prices drove the Australian dollar below 80 cents.

Employment numbers are due for release this evening. The improvements in the employment component of service. Manufacturing and construction sector PMI all point to a stronger release. The Canadian dollar on the other hand held its own against the greenback despite weaker labor productivity in the third quarter and lower oil prices. The international trade balance is due for release on Thursday and we believe that the data should be negative for the Canadian dollar given the drop in the IVEY PMI index.

Subscribe now for ForexGen Feeds for free and get our latest updates. You can also Open A Demo Account and try ForexGen Services.

Protect Your Self With ForexGen

Before we go any further we are going to be 100% honest with you and tell you the following before you consider trading currencies

All forex traders traders LOSE money on trades

Ninety percent of traders lose money, largely due to lack of planning and training and having poor money management rules.

Trading forex is not for the unemployed, those on low incomes, or who can't afford to pay their electricity bill or afford to eat.

The Forex market is one of the most popular markets for speculation, due to its enormous size, liquidity and tendency for currencies to move in strong trends.

Many traders come with the misguided hope of making a gazillion bucks, but in reality, lack the discipline required for trading.

Most people usually lack the discipline to stick to a diet or to go to the gym three times a week.

ForexGen fundamental analysis explain short term trends

How does ForexGen fundamental analysis explain short term trends?

Fundamental analysis can also explain short term trends. By keeping up to date with economic data, rumors, and news, a fundamentalist can better forecast short term trends since these are all factors that affect currency pricing.

For example, the USD/JPY stayed high throughout May 2003 due to fears of intervention by the Bank of Japan.

Another example is when the European Central Bank stated that the dollar would inevitably fall, causing the EUR/USD to rally 200 pips on October 6, 2003.

ForexGen have two major pitfalls of conventional rule-based trading systems are the need for an expert to provide the trading rules and the difficulty of adapting the rules to changing market conditions.

Forex Currency Trading

It is possible to buy and sell money from different countries on the foreign exchange market called Forex. Forex currency traders can profit by taking advantage of the dips and swells in the foreign currency market. Capturing these differentials is easier in Forex currency trading than in other trading because the Forex market is open twenty-four hours a day, except for weekends, and it is global, so there are always buyers and sellers available. The traders can be diverse. They can be traders looking for short-term gains, such as day traders or slightly longer investment periods, or they can be foreign investors who are looking to hedge their investments with long term Forex trades.for more informations...
Forex currency trading is done in amounts of currency called lots, that are usually $100,000 each, and can be purchased on margin. Forex currency trading strategies can be based on technical analysis of the history of the currency price or it can be based on analysis of a particular country’s political climate, tax policy, jobless rate, inflation rate, and other factors of the country. There are many different systems of Forex currency trading.
Forex currency trading is a huge market. Daily trading is estimated at between $1 trillion and $1.9 trillion dollars. Because the amount of money is so huge, it’s hard to imagine that the market can be manipulated the way a smaller market can be. Forex currency trading is also not overseen by one central agency like the Security Exchange Commission, and each country oversees the Forex currency trading activity within it’s own country.read more.....

www.forexgen.com