Knowing the Ins and Outs of Chandelier Exit

Have you ever heard of a stop placement strategy that trails stop based on previous 'high' points? It is called Chandelier exit as it hangs down from the high point or the ceiling of our trade, just as a chandelier hangs from a room ceiling. The distance, which is usually calculated from the high point to the trailing stop; could also be calculated in dollars or in contract based points. However, the value of this trailing stop moves upward very promptly as higher highs is reached.

The Chandelier Exit, which has a trailing stop from either the highest high of the trade or the highest close of the trade, is best measured in units of Average True Range (ATR). One of the many factors leading to use ATR for measuring the distance from the high to our stop is that, it is pertinent across markets and is adaptive to changes in unpredictability.

The essence of this calculative measure is that, even on expansion and contraction of trading ranges, our stop will automatically adjust and move to the apt level, thereby, constantly staying in tune with changing market conditions. Chandelier Exit is one of the most tried exit methodology used across a varied portfolio of futures markets to generate profitable test results.

It is imperative that the changes in unpredictability can curtail or stretch the distance to the actual stop, since the highs used to hang the Chandelier move only upward. However, in order to witness less fluctuation in the stop distance, you can use a longer moving average to calculate Average True Range. In other ways, shorter moving average is required, in case you want the stop placement to be more adaptive to fluctuating market conditions.


[ForexGen Live Account]

The live/real account is provided to those clients who may have some experience in the online trading.

[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

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.

Trend Following Forex - 3 Simple Steps to Catching Big Profits

If you want to catch the big profits in forex trading you need to trend follow forex trends which are longer term. Here we are going to give you a 3 step simple method which if you use it correctly, will help you catch every major forex trend and lead you to long term currency trading success.

Most novice traders don't bother trying to trend following forex longer term - instead they try forex scalping or day trading. These methods focus the trader on small moves and they hope to catch small profits however as most short term moves are random, this leads to equity wipe out
Breakouts

By far the best way of catching the big moves is to use a forex trading strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is broken Confirmation

Of course not every breakout continues and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your forex trading system to confirm your trading signal.
Stops and Targets

Stop levels are easy with breakouts - Simply behind the breakout point.

If you have a big trend then you need to be careful you can milk it, so don't move your stop to soon and keep it outside of normal volatility. If it is a big move, trailing stops should be held a long way back and the 40 day moving average is a good level to use.

[ForexGen Introducing Brokers]

Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.


WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?

* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.

In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.

Individualized service

[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ForexGen
incomparable to any other rival.

FOREX Fundamental Analysis

Most FOREX traders rely on analysis to make plan their trading strategy. This article will discuss fundamental analysis. The other common form of analysis is technical analysis. After reading this article you should have a better understanding of fundamental analysis and how to use it as part of your FOREX strategy.

Political and economic changes are the basis of fundamental analysis. These can frequently affect currency prices. Traders that take advantage of fundamental analysis will gather their information from a variety of news sources. They are looking for information about unemployment forecasts, political ideologies, economic policies, inflation and growth rates.

Fundamental analysis will provide you with an overview of currency movements and a broad picture of the economic conditions. Most traders then will combine their fundamental analysis with technical analysis to plot actual entrance and exit points as well as confirming the information provided by their fundamental analysis.

Just like most markets the FOREX market is controlled by supply and demand. Many economic factors can affect the supply and demand but the two most critical ones are interest rates and the strength of the economy. The over all strength of the economy is affected by changes in the GDP, trade balances and the amount of foreign investment.

There are many economic indicators released by government and academic sources. These indicators are usually released on a monthly basis but will sometimes be released weekly. These are pretty reliable measures of economic health and are closely followed by all traders.

There are many indicators that are released but some of the most important and commonly followed are : interest rates, international trade, CPI, durable goods orders, PPI, PMI and retail orders.

Interest Rates - can cause a currency to either strengthen or weaken depending on the direction of movement. In some cases high interest rates will attract foreign money, however high interest rates will frequently cause stock market investors to sell of their portfolios. They do this believing that the higher cost of borrowing money will adversely affect many companies. If enough investors sell of their holdings in can cause a downturn in the market and negatively affect the economy.

Which of these two affects will take place depends on many complex factors, but there is usually an agreement among economic observers as to how the current change in interest rates will affect the general economy and the price of the currency.

[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 serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

Successful Options Trading Strategies

When it comes to giving people the hope of becoming a millionaire overnight, the stock market excels. Every day we see evidence of stocks that have flown upwards as if they had wings, providing investors with a windfall of profits. It's inevitable that catching one of those stocks just before it takes off is an exciting possibility, inspiring the beginning trader to take the plunge. When you trade options, the stakes are raised, making those massive profits even more attainable, but the basics that underlie successful trading in the stock market are the same as those for trading options.

Once you start to look at trading stocks, you find yourself plunged into a confusing nightmare where hundreds if not thousands of people are pushing "their" system that is supposedly infallible. For a beginner, it's easy to get drawn into the complex net, believing that there must be a simple solution that will hand you the keys to stock market success. These keys will see you finding winner after winner, and making your fortune.

The reality, however, is that there are no keys that will find a winner every time. After all, if that was possible, how could anyone ever lose any money in the market? And if nobody loses, then how can someone else gain? The whole stock market would collapse.

Having said that, there are a number of very successful trading systems that work well over the long term. It's important to realize that a winning system is one that consistently delivers profit over a longer time frame - and part of the equation is that a percentage of trades will be losers. Once you learn to look at the bigger picture, rather than focusing on the individual trades, you'll be a lot more successful in the market.

There are a couple of approaches to the market that are popular across many systems. One is to take small losses when they happen, and let your winners run. So you might take six little losses, which are more than compensated for by one huge gain. This type of approach takes a lot of confidence and self-discipline, as it's very easy to give up if those six little losses all happen in a row, without a winner in sight.

Another approach is to take your profits after a certain percentage of gain, and occasionally put up with a medium sized loss. This system is nice if you like to see profits, because you don't run the risk of a stock that's risen suddenly dropping again and wiping out your profit - you took your profit early. However you also run the risk that the stock will continue to fly upwards and you miss out on that profit. This system can be risky, because you need a number of small profitable trades to cover one of the losses.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

Forex Options Market Overview

The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today's forex option market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms.

Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.

Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.

Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."

The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.

The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.

On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option's strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option's strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.

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ForexGen Introducing Brokers ,White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a large income sharing plan.

[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.

US Dollar: Will Consumer Confidence Disappoint on Tuesday?

Euro Trades in 300 Point Range vs. US Dollar as Liquidity Returns, Swiss Franc Gains as Safe Haven of Choice

British Pound Reaches New Record Low Against Euro on Bleak UK Economic, Interest Rate Outlook

Japanese Yen Ends Monday Mixed, GBP/JPY Hits Fresh 13-Year Lows

US Dollar: Will Consumer Confidence Disappoint on Tuesday?

The US dollar ended the day up slightly against the euro and British pound, reversing sharp declines during the Asian and European trading session. However, the greenback ultimately ended the day down versus the Swiss franc, Japanese yen, and commodity dollars. Fundamentally, there was no news to speak of, but event risk will pick up on Tuesday, leaving potential for volatility to pick up a bit. At 9:00 ET, the S&P Case-Shiller Home Price Index for the month of October is anticipated to fall by a record 17.8 percent from a year earlier, highlighting the extent of the collapse in the US housing sector. At 10:00 ET, the Conference Board’s Consumer Confidence Index for the month of December is expected to edge up to 45.5 from 44.9. This would mark the second improvement in a row, but it’s necessary to keep these figures in perspective, as the record low of 38.8 going back to 1967 was just realized in October, down significantly from the index’s average of more than 100 throughout 2006 and 2007. Indeed, the outlook for consumption remains bleak

Euro Trades in 300 Point Range vs. US Dollar as Liquidity Returns, Swiss Franc Gains as Safe Haven of Choice
The euro spent the majority of last week consolidating versus the US dollar between 1.3915 and 1.4125, but the pair’s break higher on Sunday coincided with a surge in volatility. Indeed, EUR/USD traded within a more than 300 point range after rallying to 1.4365 and reversing to break below 1.40 at the end of the day. On the other hand, the Swiss franc gained across the majors on safe-haven flows amidst escalating conflicts in the Middle East. The euro and Swissie did have one thing in common today: they both reached fresh record highs against the British pound. While retracements may be due for EUR/GBP and GBP/CHF on Tuesday, the trend remains clear for the pairs. There will be little in the way of event risk for the euro and Swiss franc through the end of the week. Tomorrow, the Purchasing Managers’ Index results for the Euro-zone’s retail sector are anticipated to reflect the worst conditions on record while the UBS Swiss Consumption Indicator could slump to a three-year low. Nevertheless, netiher of these releases tend to be market-moving, making technical analysis far more useful this week.

British Pound Reaches New Record Low Against Euro on Bleak UK Economic, Interest Rate Outlook
The British pound remains exceptionally weak as the currency reach new record lows against the euro and tested the May 2002 low of 1.4460 versus the US dollar. Conditions in the UK remain dismal, as evidenced by the release of disappointing UK GDP revisions last week, which signaled that the economy actually contracted 0.6 percent during Q3 compared to initial estimates of a 0.5 percent contraction. The GDP figures confirmed that the UK fell into recession for the first time since 1990-1991 as a result of the sharpest drop in consumer spending since 1995 and a decline in investment as the financial crisis took its toll. In a similar vein, the Bank of England’s measure of housing equity withdrawals fell for the second straight quarter during Q3 by 5.7 billion pounds, adding to indications that credit is not readily available nor wanted, which leaves consumption growth likely to fade further. The BOE has already cut rates to 2.00 percent, the lowest since 1951, but this data only adds to speculation that they will reduce the Bank Rate by another 50bps in January.

Japanese Yen Ends Monday Mixed, GBP/JPY Hits Fresh 13-Year Lows
The Japanese yen ended Monday mixed across the majors, as the currency fell versus the Swiss franc but gained against the euro, British pound, and US dollar. These moves were less the result of Japanese yen price action and instead were dependant on euro and British pound flows. Nevertheless, with GBP/JPY trading near 13-year lows, the resumption of a the yen’s bull trend may add to lingering concerns that Japan will attempt to intervene in the currency markets at some point. If there is a good time for the country to step in to physically drive the currency down, this may be it given the lower volumes we’re seeing in the markets due to the holidays, but if the Japanese yen continues to ease back against most of the major currencies, such action may be unnecessary.

[ForexGen Live Account]

The live/real account is provided to those clients who may have some experience in the online trading.

[Opening an Account Online]

The quickest, easiest and secure way to open a ForexGen trading account is online.
Complete and submit your application online in just a few minutes.

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.

Amazon Says 2008 Holiday Season Was 'Best Ever'

Amazon says 2008 holiday season was 'best ever,' a rare bright spot, even for online commerce

Online retailer Amazon.com Inc. called this holiday season its "best ever," saying Friday that it saw a 17 percent increase in orders on its busiest day -- a rare piece of good news in a season that has been far from merry for most retailers, including online businesses.
Amazon customers ordered more than 6.3 million items on Dec. 15, compared with roughly 5.4 million on its peak day last year, the company said. It shipped more than 5.6 million products on its best day, a 44 percent rise over 2007, when it shipped about 3.9 million on its busiest day.

The company did not provide dollar figures and wouldn't say whether the average value of orders had changed, and the jumps it reported Friday are in line with increases Amazon has seen since it started releasing the figures in 2002.
Amazon's best-sellers included the Nintendo Wii game console, Samsung's 52-inch LCD HDTV and Apple Inc.'s iPod touch.

Analysts agreed Amazon's report was good news for the online shopping giant, but they were divided over whether the results indicate strength in online commerce in general.
Forrester Research analyst Sucharita Mulpuru said Amazon's experience shows the current economy is favoring discount retailers, both online and offline.
"The Amazon story doesn't surprise me because Amazon has always traditionally been a leader on price, and they're one of the first places consumers go when they're looking for things online," Mulpuru said. "In many ways they're like the Wal-Mart of the online world."

Wal-Mart is one of very few traditional retailers where revenue has risen this holiday season over last.
Holiday sales typically account for 30 percent to 50 percent of a retailer's annual total, but rising unemployment, home foreclosures, the stock market decline and other economic worries led many shoppers to slash their shopping budgets this year.
SpendingPulse -- a division of MasterCard Advisors -- said its preliminary data show that online sales fell 2.3 percent compared with the 2007 holiday season, while retail sales overall fell 5.5 percent to 8 percent, including sales of cars and gasoline. The decline was 2 percent to 4 percent when auto and gas sales are excluded.

Online shopping may have gotten a boost from winter storms during last two weeks before Christmas, which made travel to brick-and-mortar stores more difficult.
And, although Amazon's orders rose, the company didn't say whether orders were, on average, worth more or less than last year. Spokeswoman Sally Fouts said the company would release revenue results in its fourth-quarter earnings report, due in about a month.

But she said this was Amazon's "best season ever."
Orders to Amazon on the peak day of its holiday season have jumped in the double-digit percentage range for at least the past 5 years, according to data released by the Seattle, Wash.-based company since 2002. Last year, Amazon's orders spiked 35 percent to 5.4 million at their peak, from 4 million in 2006.

Stifel Nicolaus & Co. analyst Scott Devitt said online retailers' sales tend to grow much faster than those of brick-and-mortar retailers, but he said that difference narrowed this year. That's in part because shoppers tend to go to stores for necessities and online for discretionary purchases, he said. And in an economic downturn, consumers focus on their most-needed purchases and cut back on more frivolous items.
Devitt said Amazon benefited from a vast infrastructure that allows for faster, more reliable shipping than most of its online peers offer. He called Amazon's announcement an "extremely positive data point" and said the company is "uniquely positioned to do well in an environment like this."

That environment has left many retailers in a tough position. NPD Group senior retail analyst Marshal Cohen said they will be forced in coming weeks to take still more drastic measures to drive sales and raise whatever cash flow they can.

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Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com including the following information:

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Also provide us with the following identification document:

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For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com

Best Forex Brokers

Below are the online forex brokers that are highly recommended. Why do we highly recommend these forex brokers? Well, first of all we don't. The retail forex traders of the world do. Our opinion plays no role in deciding which brokers make this list. See our notes below the list for details on how this list was compiled.

There are 11 online forex brokers on this list and we have over 220 brokers identified on this web site. This is therefore, in the collective opinion of the world's retail forex traders, the cream of the crop, the top 5%. While we do believe these are the best, there are still positives and negatives among those in this list so we urge you to read about them in more detail and do your own due diligence before entrusting your hard earned money with any of them. You may also want to check out our Recommended Forex Brokers List, our Top Rated Online Forex Brokers List, which currently includes more than 115 online forex brokers along with their independent trader ratings, and our Most Popular Online Forex Brokers List.

[Why ForexGen]


1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.

We 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 [ForexGen] prove to you that you have taken the right step by choosing our partnership.

Forex Scalpers Wanted

Forex scalping is in high demand nowadays.

Many forex brokers frown upon scalpers, but not us. We are always looking for talented scalpers.
True scalping involves opening and closing a position in seconds or minutes at most. Even though scalping involves the use of leverage and higher leverage means higher risk, the short period of time a forex scalper is in a trade decreases the exposure risk that's inherent in trading or investing due to the holding of a position. If done correctly, scalping provides this additional degree of "risk control" that is not even present in day trading.

Why don't most brokerage firms like forex scalpers?

Because many brokers are making money trading against their clients through their dealing desks. Yes; this is still legal in the forex market. While this might not affect as much regular traders (even day traders) that stay in a trade for hours or days, scalpers are another breed of trader. The profitability of scalping currencies can be drastically reduced if the correct trading firm is not used. The small percentage of successful scalpers is usually "kicked out" by one forex broker after another.

[ForexGen Introducing Brokers]

Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.


WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?

* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.

In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.

Individualized service

[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.

ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ForexGen
incomparable to any other rival.

UK Rate-Setters Hint at More Cuts, Hurting Pound

Bank of England interest rate-setters indicate more cuts are likely, causing pound to weaken

Two rate-setting members of the Bank of England indicated on Monday they favor deeper rate cuts to help the economy through the looming recession, causing a further fall in the value of the pound.
The Bank of England's deputy head, who also sits on the bank's rate-setting committee, said the bank had been surprised by the severity of the financial crisis.
"We did spot some crazy borrowing going on ... and we said, actually, for a couple of years before the crash that a correction was coming," John Gieve told the BBC.
But he added: "We didn't think it was going to be anything like as severe as it turned out to be."

Currency traders took Gieve's comments as an indication that he supports further interest rate decreases in January to stimulate spending and help pull the country out of the financial crisis.
Tim Besley, another member of the rate-setting committee, indicated that he also favors more cuts to interest rates to combat the risk of deflation, or dropping consumer prices.
"While falling prices might seem like a good thing, they would also lead to falling wages or rising unemployment," Besley wrote in an article for Britain's Daily Mail newspaper. "To make sure that inflation is not below target in the next year or even longer, the cuts in the official rate...need to have an impact."

The pound fell in the wake of the comments because rate cuts tend to weaken demand for a country's currency by reducing the yield on interest-bearing investments.
The pound fell to near parity with the euro -- hitting just euro1.0501 -- while it dropped more than 1 percent against the dollar, to as low as $1.4688.
The Bank of England has cut its interest rate three times since October, bringing it down by a total of 3 percentage points to just 2 percent -- a 57-year low.
Though there could be future cuts, Gieve said interest rates are too blunt an instrument to prevent financial crises from happening again.

"We need to develop some new instruments, which sit somewhere between interest rates, which affect the whole economy ... and individual supervision and regulation of individual banks," he told the BBC.
Had the Bank of England attempted to use interest rates to keep the price of assets -- like houses -- from spiraling upward, it would have held down the level of activity in other parts of the economy, such as manufacturing, Gieve said.
He acknowledged that the government could end up losing money from its nationalization of several of the country's banks.
"There are some books -- Northern Rock, Bradford & Bingley -- which clearly have a level of defaults in them," he said, adding that he was not yet sure whether the defaults would cause the taxpayer to lose money.

The comments came as British Prime Minister Gordon Brown laid blame for the global financial crisis on a reckless banking system.
In an interview published Monday, Brown was quoted as saying that he's angry with bank bosses who failed to acknowledge the risks they were taking.
"I'm angry -- angry we had a banking system where people neither knew the risks they were taking or were open enough about the problems they had," Britain's Daily Mirror newspaper quoted Brown as saying.

[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 serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

EU Finance Ministers Address Crisis

EU estimates tax and spending plans to add 2.4 percent to growth in 2009

Europe's various stimulus plans combined with extra welfare spending and lower tax receipts should boost growth by around 2.4 percent in 2009, the European Commission said late Thursday.
Joaquin Almunia, the EU monetary affairs chief, said the European Commission estimates that the different national spending plans will add up to 0.9 percent to the 27-nation's growth rate. EU governments plan to inject a total of 200 billion euros ($292.32 billion) into their economies in a bid to ward off the gloom from the global crisis.

The EU commission also estimates a 1.5 percent boost to growth from the higher welfare spending and lower tax receipts automatically generated as the economy slows.
"Its a very important contribution to support demand and to try to make up for the reduction of activity in consumption and private investment," Almunia said after a meeting of EU finance ministers in Paris late Thursday.
European Central Bank President Jean Claude Trichet warned governments to be cautious, urging that they respect EU budget rules.
"For some countries we are arriving at levels of debt or absence of economic sustainability that prevent them from doing more than they are now," he said.

The 15 nations that use the euro entered a recession in the second quarter.

Discussions at the meeting hosted by French Finance Minister Christine Lagarde were limited by the absence of some of the EU's heavyweight finance ministers. German Finance Minister Peer Steinbrueck, Britain's Alistair Darling and Luxembourg's Jean-Claude Juncker, who also chairs meetings of euro zone ministers, did not attend.
The head of the International Monetary Fund, Dominique Strauss-Kahn, was present at the meeting, but he didn't attend the press conference as he worked on a rescue package for Latvia, Lagarde said.
Ministers discussed increasing the IMF's budget, and the possibility of establishing an early monitoring system to spot countries heading into difficulty, Lagarde said.

Lagarde also addressed recent currency movements which have seen the U.S. dollar swing wildly against the euro.
The 15-nation euro dropped to $1.4313 in late New York trading from $1.4349 late Wednesday. The euro peaked at $1.4719 in overnight trading, its highest point since late September.
"I have a special concern for the very abrupt volatility that we are observing on this matter and for European exporters in particular its going to be a competitive disadvantage that comes upon extremely suddenly."

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

The Destination and Fundamentals of Technical Analysis:

Technical analysis is being used for the prediction of market movements (that is alterations in currencies prices, volumes and open interests) outgoing from the information obtained for the past. The main instruments of the technical analysis are different kinds of charts, which represent currencies price change during a certain time preceding exchange deals, as well as technical indicators. The latter are being obtained as a result of the mathematical processing of averaged and other characteristics of price movements. The instruments of the technical analysis are universal and applicable to any Forex sector, any currency and any time span.

Technical analysis is easy to compute what is important while the technical services are becoming increasingly sophisticated and reasonably priced. They are available to all the Forex participants independent on their trade plans, strategies applied and the time of position continuance. Under contemporary conditions it is executed by means of computers, which is important if to account that means of the electronic support become more and more sophisticated.

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Trichet Holds His Hawkish Tone Despite Deteriorating Fundamentals

The deteriorating outlook for the Europe’s largest economy has certainly raised expectation that the ECB will ease policy further throughout the next year as price pressures alleviate. However, hawkish comments from President Trichet has cast some doubt on further easing.






















Fundamental Headlines

• Toyota Delays Mississippi Prius Factory Amid Slump – Wall Street Journal

• Energy-Reserve Revisions - Wall Street Journal

• German stimulus offers job promise – Financial Times

• U.S. May Give Car Czar Power to Force Bankruptcy – Bloomberg

• HSBC May Raise $14 Billion in Capital on Rising Bad Loan Risk – Bloomberg

• EURUSD – Service-based activity in Euro-Zone contracted for the seventh consecutive month in December as the advanced PMI reading slipped to 42.0 from 42.5. In addition, the manufacturing PMI dropped to 34.5 from 35.6, and led the PMI composite to reach its lowest level since recordkeeping began in 1998 as the index slipped to 38.3 from 38.9 in the previous month. A deeper look into the report showed that new orders declined to 27.4 from 28.8, while the employment component weakened to 39.1 from 41.0. The latter suggests the acceleration in the pace of job cuts, which will add to growth concerns and weigh on consumption trends. Both the manufacturing and services readings were firmly below the 50 boom/bust level which supports expectations of another quarter of negative growtrh. The deteriorating outlook for the Europe’s largest economy has certainly raised expectation that the ECB will ease policy further throughout the next year as price pressures alleviate. However, hawkish comments from President Trichet has cast some doubt on further easing. Discuss the topic and your trade ideas in the EUR/USD Forum.

• GBPUSD – The annual rate of inflation in U.K. fell to the lowest level since June but exceeded economists forecasts. The headline reading slipped to 4.1% from 4.5% in October, but failed top meet ex[ectations of 3.9%. In addition, the core measure of inflation edged up to 2.0% year-over-year from 1.9% in the month prior, highlighting that some stickiness is still apparent in the market despite the rapid cool down of the economy. However, retail prices came in weaker than expected, with the RPI decelerating to 3.0% from 4.2%. The increasingly dire outlook for the domestic and global economy will further dampen inflation expaectations, which have led market participants to raise their bets that the BoE will continue their current easing policy. Discuss the topic and your trade ideas in the GBP/USD Forum.






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Home Builder Sentiment Remains at Record low

U.S. home builder sentiment held steady in December but remained at a record low as deepening economic turmoil, a deteriorating job market, and a flow of foreclosed homes on to the market continued to hurt sales conditions, an industry group said on Monday.

The National Association of Home Builders said its preliminary NAHB/Wells Fargo Housing Market Index was 9 in December, unchanged from November when it reached its lowest level on record since its launch in January 1985.

Readings below 50 indicate more builders view market conditions as poor than favorable. The December index was in line with expectations based on a Reuters survey of economists.

"This is suggestive of the continued decline that we have been seeing in new home sales, stubbornly high inventory levels and mounting foreclosures," said Michelle Meyer, an economist at Barclays Capital in New York.

"What is most surprising, however, is that home builders are not more optimistic about their outlook despite growing speculation of greater federal assistance for the housing market," she said.

The U.S. housing market is suffering the worst downturn since the Great Depression as a huge supply of unsold homes, tighter lending standards and record foreclosures push down home prices.

"The crisis continues," NAHB Chairman Sandy Dunn, a home builder from Point Pleasant, West Virginia, said in a statement.

"While builders are doing everything we can in the way of price and non-price incentives to move new homes off the books, buyers are afraid to move forward, and in any case there is almost no way to compete with the cut-rate product that is continually flooding the market from mounting foreclosures," she said.

Dunn said Congress and the administration must step in with substantial incentives to bring qualified buyers back to the table and effective foreclosure relief programs.

The gauge of current single-family homes sales fell to 8 from a revised 9. The index of sales expected in the next six months dropped to 16 from a revised 18. The prospective-buyer traffic measure was unchanged at 7, the group said.
HOME BUILDERS ARE HURTING

U.S. home builders, struggling under sinking demand and a credit crisis, have been facing off with a flood of homes in foreclosure.

Interest rates on mortgages have fallen sharply over the past month, a key development that could help turn the hard-hit housing sector around.

"Lower mortgages rates would be most helpful for the housing market at the moment," said Torsten Slok, senior economist at Deutsche Bank in New York.

Slok said there needs to be a boost in demand for housing before a significant improvement is seen.

"The housing market continues to crawl on the bottom and things will only gradually begin to get better in 2009," he said.

Home builders have curbed their new construction. They have also been offloading their inventories of unsold homes by slashing prices at the expense of profits to pay off their debt and keep afloat.

"We have seen no improvement over the past month in terms of sales conditions for new homes," NAHB Chief Economist David Crowe said in a statement.

"In fact, certain factors have gotten progressively worse, not the least of which is the job market, where massive layoffs are having a devastating effect on consumer confidence," he said.

Crowe said at this point it will take definitive government action to stop the slide in home values and turn the tide of consumer sentiment.

"Expanding the first-time buyer tax credit and providing government action to reduce mortgage rates would go a long way toward arresting this downward spiral, just as a combination of similar moves worked in the 1970s to boost the housing market and economy," he said.

On a regional basis, the housing market index declined in two out of the four regions in December. The Midwest and South posted a one-point and a two-point decrease, to 6 and 10, respectively. The Northeast held even with the previous month's 11 reading. The West posted a one-point gain to 7 this month.

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Canada Agrees on Conditional Auto Aid Plan

Canada agrees on conditional auto aid plan as part of larger US bailout

Canada's federal government and the province of Ontario agreed Friday to provide $3.5 billion Canadian dollars ($2.8 billion) for the Canadian auto industry.
Federal Industry Minister Tony Clement said that is the equivalent of 20 percent of the $14 billion that the Bush administration is considering in emergency aid for General Motors Corp., Ford Motor Co. and Chrysler.
Clement said the main auto manufacture restructuring will be done in the United States, but Canada is also prepared to provide help to save the troubled industry, which employs hundreds of thousands of direct and spinoff jobs in Ontario, which is across the border from Detroit in the U.S. state of Michigan.

"What we are signaling here tonight, both the governments of Ontario and Canada, is that we want to be part of the solution as well and it will be commensurate with the production that takes place here in Canada ... about 20 percent," Clement told reporters.
The Detroit Big Three automakers currently employ more than 30,000 people at car assembly plants in Ontario.
The move by Canadian politicians comes after the U.S. Senate rejected a $14 billion plan, endorsed by U.S. President George Bush and congressional Democrats, that would have provided quick loans to the Detroit automakers.

On Friday, GM, Ford and Chrysler were talking with the administration and the U.S. Federal Reserve about how they could still get the billions of dollars they say they need to survive. The talks included conditions that automakers would have to meet, said GM spokesman Greg Martin.
The administration said no decisions had been made on the size or duration of the new bailout plan, or what type of concessions might be demanded from the struggling automakers, their workers, stockholders or others.
Canada's federal government came under increasing pressure to announce a multibillion-dollar aid package for the auto industry even before the White House finalizes details of its planned bailout of the battered Detroit Big Three.

The president of the Canadian Auto Workers union said Friday that aid can't come quickly enough for General Motors, Ford and Chrysler and their Canadian subsidiaries.
"The Canadian government should be proactive, announcing a Canadian financing package conditional on a U.S. package coming together," CAW president Ken Lewenza told a news conference.
"We think if Canada was to move and move swiftly, then that would put pressure on the U.S. to respond more appropriately."
Both the federal and Ontario governments have been reluctant to hand out any aid without first seeing the details of a comparable U.S. package so they can match any conditions and provide a proportional amount of funding.

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Post of The Day: USD/JPY

Please find attached the chart for 2days-1hour having the support line and the resistance line. If I would have decided to buy I would have bought when the market fell a little low, the third time and would have done a short trade and closed the position by attaining a marginal profit. Please correct me if I am wrong and give me more ideas about using the support and resistance lines. And do let me know whether I'm right in drawing lines.

Power Course Instructor’s Response:

It is clear that you have the right idea about support and resistance lines. What we need to be sure of, however, is in what direction should we be taking the trade...long or short.

Take a look at charts below for a visual on using them to trade this pair.

We want to get the direction that we should take the trade from the Daily chart. On that chart we can see that the trend is down so we know we only want to take short positions since they will be the higher probability trade. Next we can drill down to a 4 hour chart (which I did) or a 1 hour chart to "fine tune" our entry in the direction of the trend. The second chart provides two options as to how to trade this pair.





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GBP/USD: Trading the U.K. Producer Price Index

Price pressures in the U.K. are expected to weaken further as economists forecast the producer price index to fall to 5.6% from 6.8% in October.

Trading the News: U.K. Producer Price Index Output

What’s Expected
Time of release: 12/08/2008 09:30 GMT, 04:30 EST
Primary Pair Impact : GBPUSD
Expected: 5.6%
Previous: 6.8%

Impact the U.K. PPI Output has had on GBPUSD after the last 3 releases







October 2008 U.K. Producer Price Index Output

The U.K.’s producer price index fell at a record pace in October, which lowered the annual rate of inflation to 6.8% from 8.5% in September. The breakdown of the report showed that petrol prices fell 5.6% from the previous month, while core prices slipped 0.5%. The data suggests that firms will continued to cut prices as Europe’s second largest economy heads into its worst recession since 1991, and has certainly raised the risks for deflation as the Bank of England expects inflation to fall below the 2% target. Falling commodity prices paired with deteriorating fundamentals led the BoE to aggressively lower borrowing costs throughout the second half of the year, and may continue to ease policy next year to carry out their dual mandate to ensure price stability while fostering economic growth.

September 2008 U.K. Producer Price Index Output

Factory-gate prices in the U.K. dropped for the second consecutive month in September as economic activity weakened throughout the second half of the year. The producer price index slipped to 8.5% from a revised reading of 9.1% in August on the back of falling commodity prices, and should allow the Bank of England to lower borrowing costs further as the economy heads into a recession. The MPC voted unanimously cut the benchmark interest rate by 50bp in a coordinated effort to restore confidence in the financial market, and lowered the rate to 4.50% from 5.00%. Easing price pressures paired with fears of a significant economic downturn has already stoked expectations that the BoE will continue to cut borrowing costs in the near-term, which could weigh on the British pound going forward.

August 2008 U.K. Producer Price Index Output

U.K. producer prices unexpectedly declined for the first time in nearly a year due to a significant pullback in commodity prices. The PPI slipped to 9.7% from 10.2% in the previous month, which suggests that inflation may have peaked during July. Easing prices pressures will certainly allow the Bank of England to shift their focus to growth and push inflationary concerns to the backburner, which leaves the door open for a potential rate over the coming months as growth prospects for the U.K. deteriorate. Meanwhile, the MPC continued to hold a neutral policy stance as they voted to hold the interest rate at 5.00% during the September 4th meeting, while Chancellor Alistair Darling explicitly stated that Great Britain may face the worst economic downturn since the 1940’s.

How To Trade This Event Risk

Price pressures in the U.K. are expected to weaken further as economists forecast the producer price index to fall to 5.6% from 6.8% in October. The remarkable slowdown in the economy paired with falling commodity prices allowed firms to aggressively lower output prices throughout the second half of the year, and may continue to cut prices over the coming months as the economy heads into its worst recession since 1991. Europe’s second largest economy contracted 0.5% in the third quarter as private-sector consumption fell for two consecutive quarter, and was followed by a 2.4% drop in business investments. In addition, retail spending contracted for the second straight months in October, which suggests that firms will continue to lower prices in order to stay afloat during the considerable downturn in the economy. Meanwhile, the Bank of England continued to highlight the risks for deflation as he saw a ‘substantial risk’ for inflation to fall below the 2% target, which could lead the central bank to lower borrowing costs even further as policymakers carry out their dual mandate to ensure price stability while fostering economic growth. Moreover, Credit Suisse overnight index swaps are showing that investors expect the BoE to lower rates further over the next 12 months, which could stoke increased selling pressures for the British pound over the near-term.

As the Bank of England continues to hold a dovish outlook, we would need to see a considerable spike in inflation to set the stage for a long pound-dollar trade. As a result, a PPI reading above 6.8% would favor a bullish outlook for the British pound, and we will look for a green, five-minute candle following the release to confirm entry on two lots of GBPUSD. We will place our initial stop at the nearby swing low (or reasonable distance), and this risk will determine our first target. Our second target will be based purely on our discretion, and once the first lot reaches its target, we will move the stop on the second lot to breakeven in order to preserve our profits.

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ForexGen Introducing Brokers ,White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a large income sharing plan.

[ForexGen] provides appropriate services satisfying the needs of all business partner's specified situation and requirements.