ForexGen Trading Currencies

Oil prices near $35 per barrel before the holiday as bad economic news keeps coming
HOUSTON (AP) -- Crude prices tumbled Wednesday following a raft of bad economic news and growing stockpiles of unused gasoline that suggested demand for energy has continued to erode.

Light, sweet crude for February delivery fell $3.63 to settle at $35.35 in a shortened day of trading. Prices fell as low as $35.13 just before the market closed for the holiday.

It was the ninth straight day that crude has fallen.

Investors expecting more evidence of slowing U.S. energy demand got a bit of a surprise as the Energy Department reported crude inventories dropped last week.
But Americans continue to cut back on driving amid the worst recession in a generation, leading to growing stockpiles of gasoline and eroding demand for motor fuel.
Gasoline futures plummeted below 80 cents a gallon.
"I don't see anything out of this report that's really going to change this downward move," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates. "Things are going to remain under downside pressure through the balance of this year and probably into the new year."

A steady stream of dismal U.S. economic and corporate data during the past few months has hammered investor confidence and sent oil prices reeling 74 percent since July.
More bad news emerged Wednesday with consumer spending falling for a fifth straight month in November, the longest weak stretch in a half century, while incomes declined under the weight of massive job layoffs.
Separately, new claims for unemployment benefits rose more than expected last week, as layoffs spread throughout the economy, more evidence the labor market is weakening as the recession deepens. The Labor Department reported initial requests for jobless benefits rose to a seasonally adjusted 586,000 in the week ending Dec. 20, from an upwardly revised figure of 556,000 the previous week. That's much more than the 560,000 economists had expected.
Manufacturers are slashing energy use as well. Orders at U.S. factories for big-ticket manufactured goods fell again in November, reflecting further setbacks in the battered auto industry and a big drop in demand for commercial aircraft.
For the week ended Dec. 19 crude inventories fell by 3.1 million barrels, or 1 percent, to 318.2 million barrels, which is 9.1 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.
Analysts had expected a boost of 1.5 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Gasoline inventories rose by 3.3 million barrels, or 1.6 percent, to 207.3 million barrels, which is 2.4 percent below year-ago levels. Analysts expected stockpiles of the motor fuel to rise by 900,000 barrels.
Demand for gasoline over the four weeks ended Dec. 19 was 2.7 percent lower than a year earlier, averaging nearly 9 million barrels a day.
At the pump, retail gas prices fell less than a penny overnight to a new national average of $1.655 a gallon Wednesday, and remain well below the year-ago average of $2.972 a gallon, according to AAA and the Oil Price Information Service.
In a separate weekly report, the EIA said natural gas storage levels in the U.S. tumbled last week but remain 3.4 percent above the five-year average for this time of year. The EIA said natural gas inventories held in underground storage in the lower 48 states slipped by 147 billion cubic feet to about 3.02 trillion cubic feet. Analysts had expected a drop of between 142 billion and 147 billion cubic feet.
Oil traders so far have brushed off attempts by OPEC to boost prices through production cuts. The Organization of Petroleum Exporting Countries, which accounts for about 40 percent of global supply, said last week it would slash production by 2.2 million barrels a day, its largest single cutback ever. The most recent round of cuts would reduce OPEC production by more than 2 million barrels per day.
OPEC may meet in Kuwait City on Jan. 19 to discuss further production cuts. The group's next official meeting is March 15 in Vienna.
The fall of benchmark crude on the Nymex has been paralleled by steep declines in Brent futures traded on London's ICE exchange.
Trader and analyst Stephen Schork noted that Brent crude has dropped "in 79 of the last 123 sessions ... by a total of $108.05 a barrel" -- a 73 percentage point loss.
On Wednesday, February Brent crude slumped $3.75 to settle at $36.61 a barrel on the ICE Futures exchange.
In other Nymex trading, gasoline futures tumbled by 6.3 cents to settle at 79.27 cents a gallon. Heating oil plunged 12.8 cents to settle at $1.1983 a gallon while natural gas for January rose 17.3 cents to settle at $5.91 per 1,000 cubic feet.

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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.

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As you have introduced enough to the Forex market…FOREXGEN still learn you a lot, When you open a demo account you will find on the online trading platform that you will always be able to enter a stop order level that will automatically stop out your trade at the level you set, or a limit order that will close your position at your desired profit level.

Using the FPS means that you should always set your level just below the EMA 50. As your position moves in the right direction, you should move your stop accordingly. Then if your position moves against you, you would have locked in your profits by moving up your stop order. It is important that if the prices cross back over the 10, 25 and 50 that you close your position.
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Foreign exchange trading has been growing rapidly among day traders since the 1990s, as day traders have seen the advantages that trading currencies can have over trading stocks. However, since there are fewer currencies for beginners to purchase over the large number of stocks available, FX trading can be much more difficult for a newcomer to learn and master. Still, there are some basic principles that someone new to foreign exchange trading should learn, and these concepts may even be helpful to the experienced trader.

The first principle of FX trading is to understand that trading is an investment, not an income. If you are looking to constantly boom in Foreign exchange trading, then you may need to do a reassessment. FX trading, like other forms of trading, allows you to make a good return on your initial capital annually. However, during that year you need to expect some ups and downs in your foreign exchange trading. You could even have several months where you have consecutive losses. It is probably in your best interest to have another source of income while you do FX trading.

Another area where beginners sometimes find themselves frustrated is that they try to predict the foreign exchange trading markets. Thousands of traders have influence over the FX trading markets, along with politics and economic events, so there is no way to predict which way the market will move. There are some types of analysis that may provide an educated guess into market flow when doing FX trading, but they are not always reliable. Do not be discouraged, though, by the fact that you may lose on more trades that you gain on, as using sound money management can help you be successful with foreign exchange trading.

Making money from FX trading means that you need to make enough to cover your losses and gain profit to increase capital. When FX trading, you will need to allow your money-making trades ride while knowing when to cut your losses as soon as possible. foreign exchange trading means learning some finesse, as there can be a fine line where you will want to wait a little for the market to turn in your favor on your losing trades and also making sure you do not take your profit to soon on your better trades.

One way to handle your FX trading is to use a tested system and a money management strategy. There is no room for emotion when foreign exchange trading, so you will need to use a business-like approach that has been tested on market data. Using a tested approach will save you a lot of stress when foreign exchange trading. Also, using a sound money management strategy will allow you to use your capital in the best way when FX trading so that you can maximize profit and avoid major losses.

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This trading is always done in pairs – Currency Pairs, one currency is bought and the other is sold. Together, they make up what is known as the "exchange rate".

For example, you may buy Euros with Dollars, anticipating that the Euro to increase in value relative to the Dollar. If the Euro rises relative to the Dollar, you sell the position and can earn a profit.

Most commonly traded currencies or the “majors” are:

US Dollar (USD)
Japanese Yen (JPY)
Euro (EUR)
British Pound (GBP)
Canadian Dollar (CAD)
Australian Dollar (AUD)
Swiss Franc (CHF)

Most commonly traded currency pairs are:

US Dollar and the Japanese Yen (USD/JPY)
Euro and US Dollar (EUR/USD)
US Dollar and Swiss franc (USD/CHF)
British Pound and US Dollar (GBP/USD)

While quoting currency pairs, the first currency is referred to as the base currency and the second as the counter or quote currency. The base currency is always equal to 1 monetary unit of exchange, for example, 1 Dollar, 1 Pound, 1 Euro.

Trading Forex Currency Pairs for Maximum Profit

It is also known as domestic currency or accounting currency and sometimes also referred to as the primary currency of a Forex currency pair. The price represents how much of the quote currency is needed to get one unit of the base currency.

When a currency is quoted against US Dollar, it is known as direct rate. Any currency not against the US Dollar is called a cross rate.

The quote currency is translated into a certain number of units of the base currency. This is also referred to as the foreign currency, secondary currency or counter currency. For example, if you find that a quote of USD/JPY is at 1.30, it says that for every 1 US Dollar, you get 1.30 Japanese Yen. When you quote for AUD/JPY of 67.73, it says that for every 1 Australian Dollar, you get 67.73 Japanese Yen.

Currency pairs are generally traded as 100,000 units of the base currency. For example, if you were buying EUR/USD at 0.95 you would be paying Dollars for Euros as follows:

100,000 x .95 = $95,000 for 100,000 Euros

When you find a quote going up, it means that the value of the base currency is rising or in other words, it is getting stronger. If a quote is going down, it means that the base currency is weakening.

The dominant base currencies are:

Euro - EUR/USD, EUR/GBP, EUR/CHF, EUR/JPY, EUR/CAD
British Pound - GBP/USD, GBP/CHF, GBP/JPY, GBP/CAD
US Dollar - USD/CAD, USD/JPY, USD/CHF

The currency pairs are usually traded and quoted with a ‘bid’ and ‘ask’ price. The ‘bid’ is the price at which you are willing to buy and the ‘ask’ is the price at which price you are willing to sell.

For example, if the USD/EUR currency pair is quoted as - USD/EUR = 1.5 and you purchase the pair, this means that for every 1.5 euros that you sell, you get US$1. If you sold the currency pair, you receive 1.5 euros for every US$1 you sell.