Daily FX | Dynamic Trader Blog

New Regulations

Hello Dynamic Traders,

As most of you will be aware the new NFA regulations have come into force and you may see some new additions on your trading account on Sunday night (GMT).

Those of you who hedge on your currency accounts will no longer be able to continue this practice. The NFA FIFO rule that is in place (for US accounts only)  is to prevent the ability to hedge. If you open multiple position on a currency, until now most of you (depending on broker) have been able to close whichever position you wanted and in whatever order you wanted. The FIFO rule (first in first out) means you can now close only the first position first and then the second position second. In other words, the order in which you opened your multiple positions on that currency is the order you will have to close them.

Also, if you take out a long position on a currency lets say using our Double Deviation strategy and you decide you want to take out a short positon on that same currency using our 3D strategy, then in effect what will happen is your 3D position will close your Double Deviation position. The short position will not open because a long position is already in play, so instead now the short position will actually close all or part of the original long position.

To get around the above issues, you can move your broker to the UK account broker if they have one or close that account and open a spread betting account in the UK (if your not a US citizen). If you really want to continue with your current US broker, then if they allow this, you can open multiple accounts so then you can choose one account to always use for long positions and you can use the other account for short positions. This will be the same as hedging but across two accounts with the same broker. However, the first in first out ruling will still stand but that should not really be much of a concern to dynamic traders from they way you all trade based on what you have been shown of the members webinars.

Another trading month is over and most of you will have had some very good trades so now it is time to enjoy the weekend, do not think about trading until you perform your analysis.

Do not forget to visit our other forex blogs.

Saba and Bijal's updates
Richard and Zaheer's updates
Clayton and John's updates

Good dynamic trading.

Javid Shaik
Forex Analyst

CADJPY Break Out

Hello dynamic forex traders,

I hope you enjoyed your weekend and spent some time preparing for the trading week ahead.

The CADJPY recently passed the VI after convrgence of MACD on the daily time frame. This has now been added to my watchlist and for those new traders looking for an entry, go down to a smaller time frame to establish a low risk position but as always beware the traders remorse.

Todays forex trends chart taken from the Dynamic Trader Trend Analyser is below for your guidance.

You can read Javid's forex update on our sister forex blog.
You can read Richard's update on our other sister forex blog.

I wish you all a good trading week.

Anne Chapman
Currency Analyst

Dollar direction

Hello dynamic traders,

As you may already know, some of the major pairs are in a consolidation phase so I though we could look at the Dollar Index to see what is going on.

The Index has been in a decline from the beginning of March this year and demonstrated an almost accurate measured move in the pullback later the same month. After reaching it's previous resistance level it promptly continued it's move to the VI. After breaking that with a flag and continuation to another almost accurate measured move a consoldation has ensued. This consoldation has given us a triangle formation and this morning the last price as you can see from the chart below has broken the lower support level but as you know this could be a fake breakout.

If the Index has indeed broken out and continues the slide down we have support in the 7800 zone and to the upside we have resistance in the 8200 zone.

Watching this Index will help us in analysing the majors.

Chart of daily Dollar Index below is by courtesy of Advanced Get and the data is provided by eSignal.

I would like to congratulate Prakash for last weeks excellent trading. Very well done and you have every reason to be very happy with yourself.

You can follow me on Twitter here.

Good trading...

Anne Chapman
Currency Analyst

Daily Forex Trends

Good mornig dynamic traders,

Here are todays forex trends.

Forex Trends taken from the Dynamic Trader Trend Analyser

Javid Shaik
Forex Analyst

Profit taking day

Good evening forex traders,

It has been one extremely busy day for us and I am not talking about the markets. I was hoping to do an update this morning but this is the earliest I have had a chance to do one. As a result of being so busy since we have been back from our road trip, we have decided the next few days of this week, all emails and calls will be put on hold and dealt with from Monday at the earliest and not before then so please be patient.

The currency markets seemed to be taking some profits today and is also gearing up for some big news this week so we have witnessed some intraday pullbacks. This is normal behavior as has been pointed out previously. Below is the chart for todays forex trends.

Taken from Dynamic Trader Trend Analyser

While talking with Roger today who I am sure will become an excellent currency trader in time, I realized a few things while going through his notes from our one to one training. Roger's colour is green and subsequently he assimilates information in only the way greens can do. I went through his notes from our mentoring today and noticed how crystal clear it was. No waffle, just clear precise points. It was as if the whole two days was one big trading plan for him. That explains how he managed to pick up two strategies so easily and quickly.

Roger has an affiliation for Double Deviation and 123's and it seems to be a favorite amongst many of you and for good reason. However, a stumbling block I have found many traders face is a subconscious need to be right when the market does not do what they were expecting and then what takes place is a period of torturing data to se why it did not do what they were expecting and subsequently self sabotage. This is a cycle majority go through and as a result miss the obvious set ups and end up taking the obscure set ups. Trading is not easy, if it was everyone would do it and of course that is not the case. However, trading is not difficult but what is easy to do is to make trading more difficult than it is and end up feeling lost. Roger has the right idea, he kept it very simple and my advice is that is what you should all do too.

Life is complicated enough without bringing it into your trading.

Javid Shaik
Forex Analyst

Back from holidays

Hello everyone

As I think most of you will know by now, we have been away for a few weeks on a shortish road trip around Europe. We started in Germany before heading to Austria followed by Italy then South of France. With so much travelling our only drawback was not the miles being covered but the lack of consistent internet connection for our trading. We did get to manage positions at some of our destinations though.

View from our helicopter ride over Monte Carlo.

Pilots view of the mountains in South of France.

View from one side of our room balcony in Italy.

View from another side of our room balcony in Italy.

We have taken hundreds of pictures and plenty of video footage but have limited this update with just a few pictures so as not to detract from the upcoming trading week.

As Javid mentioned some weeks ago on the forex webinars, USDCAD short was a good trade to take and GBPUSD at the same time was also good long position to consider. Both have provided excellent profits so far. We could see a pullback soon so it will be worthwhile paying some attention to these positions this coming week.

We have also mentioned about a potential Gold bullish period some weeks ago and this too has produced some good points. If Gold was to break the previous 1000 resistance convincingly then we should prepare for further bullish activity. If Gold cant find the momentum to break the strong resistance then we might find further range bound activity or a double top scenario.

Our system has shown the FTSE 100 has been bullish since mid March and is now approaching a strong resistance zone so those of you who trade this Index should be aware.

Here are the trends for the main currencies below as of Sunday afternoon.

Dynamic Trader Trend Analyser.

Good trading.

Anne Chapman
Currency Analyst

Trends for Forex

Good morning forex traders and welcome to another week of trading.

I would like to start by thanking all the Dynamic Trader bloggers for their time and effort. It is appreciated tremendously not only by myself and Javid but also by so many of our forex blog readers as described in their emails.

Last week provided some good pips overall and lets hope this week will be even better. The Euro could be having a breather before a possible continuation so I will be watching this pair for a move either way.

The USDJPY is finding resistance so it could continue further downside. Dealing below 96 will likely be strength in weakness.

Watch AUDUSD for resistance and subsequently possible reversal or consolidation.

Javid's Twitter has already mentioned the CHFJPY late last night and this morning is being managed.

Below is the Dynamic Trader Trend Analyser for your trading convenience.

www.fxcps.com
www.fxcps.co.uk
www.fxcps.eu

Follow Javid on Twitter
Follow Anne on Twitter

Good trading to you all this week.

Anne Chapman
Currency Analyst

Forex Trends

Good morning dynamic traders,

We spent Saturday at Silverstone in our latest car BMW M3 and cooked the brakes so today are having to try and organize racing brakes to be fitted into the car in time for our next driving day this coming weekend.

Focussing on the week ahead, I have attached the forex trends for your convenience.

I am waiting for a set up on GBPCHF cross. The GBPUSD hit our target and has travelled down since then. The Cable is close to a support zone so those of you shorting this should watch out for that.

Good trading.

Anne Chapman
Currency Analyst

Forex Trends

Good morning dynamic traders,

Spent Monday and Wednesday with a personal shopper and today organising everything so have not had much chance to trade too much this week but those of you that know Javid will know he is not too far away from computer access for too long and as such still managed to continue his trading this week.

As I am busy today and tomorrow I will not be trading the rest of this week but thought I had better still give you the forex trends for the remaining of the week.

Here are todays forex trends for all you dynamic forex traders.

Good trading.

Anne Chapman
Currency Analyst

Todays Forex Trends

Good morning dynamic traders,

I would like to start off by saying thank you to a couple of friends for dinner yesterday.

The GBPUSD is in an uptrend and getting close to the big figure so watch out in case we get a U-turn. The USDJPY is also continuing the upward breakout so I think we may see one of these two changing it's direction soon even if it is temporary.

Todays trends are shown below.

Good trading.

Anne Chapman

Trend Analyzer

Good morning dynamic traders,

It has been quite a busy few weeks for us with the motor racing days. We were at Silverstone on the GP circuit on Monday amongst the Aston's, Porsche's and Lambo's which initially was quite intimidating but once we started to overtake the Exige's, Cayman's, Caterhams and other faster cars I thoroughly enjoyed the day.

Even though our Type R is less powerful than some of the other cars on the circuit, the techniques we are learning from our instructor is more important and manages to keep the faster cars behind us when negotiating corners especially at speeds over 120 mph where some of the other drivers with more horse powered cars are unable to keep up due to lack of technique.

Training and technique is invaluable in learning anything new and that certainly is true with trading. As many of you have previously asked Javid to share his trend analysis after having been on the forex webinar series, I have decided to put the trends on the forex blog for you. This trend analysis is only useful to those who have been on the Dynamic Trader forex webinar training.

I would like to say well done and good luck to both Hansel and Shirin.

Visit our other blogs below:

www.fxcps.com
www.fxcps.co.uk
www.fxcps.eu

Follow Javid on Twitter
Follow Anne on Twitter

Anne Chapman
Currency Analyst

Passion Can Provide The Edge

Good morning forex traders,

We have had a busy week with our driving education. While we were at Silverstone on Monday we bought our helmets, gloves, intercom system and this equated to quite a few thousand Pounds. It's no wonder motorsport is an expensive business. Non the less, we are having so much fun it is keeping us busy and very much entertained. Talking with a friend yesterday, we decided to all try over hand at clay pigeon shooting soon.

Earlier yesterday we had lunch with Saba (who you know from fxcps.com updates) and those that have been following our Dynamic Trader forex blogs will be aware of the progress Saba has achieved and is now becoming a full time forex trader and leaving behind her mortgage business of 20 years. As you can all imagine that is a big step in itself and one many people would not consider but Saba did. The question is why and how did Saba consider this as an option?

Those of you who know Saba will not fail to spot a very noticeable characteristic and that is her pure passion for anything she decides she wants to do. Other than the thought of failure never entering her mind, her ability to focus coupled with overflowing determination forces her to succeed and that alongside her forex education and abundant passion is what is providing her the success in the currency markets today.

Everyone is looking for shortcuts. This could be in the form of attending overhyped trading seminars, or purchasing the latest all singing all dancing trading software or even using free software and worse still, no education. To be a success at anything in life, there is always an expenditure. This cost covers the learning, the equipment and the time.

We are currently paying just short of £1000 per day to learn how to race cars. I know and accept I have an expenditure to learn how to drive with the right techniques. Our first lesson consisted of technique and we were over taken by every single car on the circuit. Our second lesson consisted of speed and technique and we now started to over take other cars on the track. Driving over 100 mph around corners is new to me and I have learnt a technique that gives me the most momentum and the least effort which I would not have realized by myself. It's techniques like this that allowed me to over take a Porsche, Lotus and Jaguar all of which have more power than my Type R.

Those wanting to be forex traders undoubtedly need good education but also need a passion for trading. Forex trading is like a drug and I think it is the best business in the world but no matter how much passion you may hold for your business, you need a past time. Right now, our is racing!

To be an accomplished forex trader you need to immerse yourself into trading and develop a passion for it then, when you begin to find yourself spending all available hours in front of your trading software, find a past time to allow your mind to relax from the trading. This will help you to be alert and refreshed for the next time you get ready to tackle the market.

Visit our other blogs below:

www.fxcps.com
www.fxcps.co.uk
www.fxcps.eu

Follow Javid on Twitter
Follow Anne on Twitter

Javid Shaik
Forex Analyst

Conversation with a FX Trader

Good afternoon dynamic traders,

This week has been a busy schedule for us and right now is the first time I have had to sit down and catch up. As some of you know we went rally driving on the weekend which was awesome! Driving at speeds in excess of 100 mph and more importantly driving those speeds legally is a great thrill and very entertaining.

Stayng on the topic of driving, I wanted to share with you the success a certain individual has been enjoying. Saba Jackson who you will all know from the updates on www.fxcps.com has been trading for a couple of years now. I gave Saba a one to one mentoring session and it was soon after that I realized Saba demonstrated a high degree fo competence and abality in forex trading. In less than two years Saba has moved over from financial advising to financial trading and now earns in a week what some employees just about earn in a month.

If I was to pick out one aspect of Saba that I could share with you all other than her immoderate eagerness and relentless passion for forex trading, it is simply her ability to follow through. Many traders want to learn to trade for more money, better lifestyle, a nice car, more holidays and the list goes on. During my conversation with Saba earlier this afternoon I asked a few questions and the end result I found what I was looking for. Saba is an ordinary person with an extraordinary drive. In her own words, she does not recognize the term failiure.

Many people give up trying to get good at something as soon as any form of discomfort shows up and this holds more truth in the trading world than anywhere else as almost all the discomfort is psycological. Those that strive to surpass this destroying threshold will beneift and can enjoy a life way beyond the dismal rat race.

If you are someone learning to trade and sometimes think you are not cut out to be a trader then welcome to my past. I have entertained similar thoughts and like Saba I persevered. I will encourage all of you reading this and trying to become successful forex traders, seek education and continue to practice. I do not believe practice will ever make anyone perfect but it will certainly make you a good trader.

www.fxcps.com
www.fxcps.co.uk
www.fxcps.eu

Follow Javid on Twitter
Follow Anne on Twitter

Good dynamc trading.

Javid Shaik
Forex Analyst

GBPCHF Management

Good morning forex traders,

I would like to start off with congratulating Saba for her move towards becoming a full time forex trader. This is always a big step for anyone and one that is not available for so many people but luckily since Javid has been teaching currency trading to a select few people, I think this makes his fifth full time forex trader. Saba I wish you massive success and good dynamic forex trading.

I would like to revisit the forex chart GBPCHF mentioned yesterday by both myself and Javid on the fx blog and on Twitter. This forex cross has produced in excess of 600 pips in profit over just two days. Still in this trade and managing it now before we leave for shopping in Harrods for the day.

The GBPCHF 60 minute chart below shows XTL in play and Stochastics confirming the trend down. The figure may force a breather or even a bounce so if you are in this trade please take action in the form of trade management.

Source: Advanced Get by ESignal

Click here to read more about Advanced Get.

Further forex analysis.

Even further forex analysis.

Good forex trading.

Anne Chapman
Currency Analyst

Trading During Christmas

Good morning traders.

I hope you have all had a good Christmas day and managed to spend time with those closest to you.

Trading during Christmas is quite dull and your time is better spent with family and friends. The earliest the markets are likely to show some action again will be Monday 29th and then again when the markets open in the New Year. Refrain from trading Friday (Boxing Day) as it is very weak volatility.

Below is the last car we spent a few days driving. The Audi R8 is stunningly attractive and also fun to drive. The bass sounding roar of the acceleration is absent and is replaced with more of a high pitched squeal. This is an eye catching car but the drive lacks that certain something. It's a little too tame and does not have the Porsche safety feel to it but take nothing away, this is a great car and very easy to drive.







The view of the engine at the back is always a crowd puller.


Best wishes to you all. Have an enjoyable and safe festive season.

Anne Chapman
Currency Analyst

$180k loss in 3 months

HIGH-risk investments can make or break an investor, especially during the current troubled times.

If the investor makes the decision to invest, but also expects his bank's relationship manager to watch out for him, who should be blamed if the investment turns bad?

This question was raised in the case of a 30-something Singaporean investor who lost more than $180,000 in foreign exchange trades in just three months.

John, who did not want his real name published, works as a technical consultant in an investment firm.

He claimed that he was not aware that he suffered so much in losses until it was too late.

The reason: He had trusted his bank's relationship manager and the bank's services, and had relied on that to keep him posted on his investment.

However, one investor coach we spoke to said that it can be hard to pin blame on the relationship manager. The investor is responsible for his investments. (See report on facing page.)

John said that every time before he made a transaction, he would call his relationship manager to check on his account balance.

On top of that, the bank would usually post a notice to him to let him know how much he had made or lost in a particular transaction after it was completed.

He would receive it in about a week.

However, it now appears that these were insufficient measures.

The coach investor we spoke to called such manual tracking 'primitive'.

But for John, this had worked well since 2006, when he started investing in foreign exchange trading through his ABN AMRO wealth management account.

He had set aside $50,000 of his savings to open his account. Over time, he traded in higher amounts as his returns from each trade increased.

Then, things started going wrong in August this year.

From August to October, John, who had hoped to get bigger returns with the volatile markets, placed several trades of more than US$100,000 ($149,000) each time in the US dollar and the Australian dollar.

'I wasn't told'

On 15 Aug, he said that his trades made a US$129,000 loss, and John is now claiming that he did not know about this until a month later.

He claimed he did not receive the weekly notice on that transaction, and found out only in the monthly statement, which states the profits and losses made during the month.

He also claimed that he had been calling his relationship manager before he found out about the loss, but was not given the information earlier.

He said: 'When I called, I wasn't informed of the losses. I presumed that the profits from my other transactions had managed to cover my losses. I was told there was still an excess in my account.'

This led him to mistakenly believe that he had more money in his account than he really had, John said.

After the loss in August, he placed another trade, which resulted in a US$190,000 loss on 19 Oct.

He said he knew the risks of forex trading, and he had a 'stop-loss level'.

'I had a buffer amount of losing no more than US$150,000,' he said.

'By neglecting to tell me that I had made such a huge loss, the bank exposed me to a very risky situation and caused me to over-extend myself.'

Affected behaviour

He said: 'If I had known I had to top up my account with US$129,000, I would have lowered my trading limit.

'What was the possibility that they missed out such a huge transaction? I even called them regularly to check.'

Frustrated, he wrote in to the bank demanding an answer.

He said the bank apologised for the error, but he was not satisfied.

When approached, a spokesman for ABN Amro said: 'As (part of) the bank's policy, we do not comment on individual client matter due to client confidentiality.

'We have taken the issues raised very seriously and conducted a thorough investigation and review.

'We believe that our current processes and the steps we have taken are in line with market's best practices. We will continue to actively address any further concerns the client may have.'

This article was taken from Singapore's The New Paper.

Read FXCPS.co.uk
Read FXCPS.com


Anne Chapman
Currency Analyst

Exciting day

Hello forex traders,

We have further news out today and analysts expectations are not positive.

CPI and RPI figures are out and big drops are expected. FOMC rate decision is expecting a further cut. The US CPI figures are expected to be lower too so we are all set for further bad news.

With all this expectation of bad news and if the results are as bleak as the forecasts then for certain we can say the markets are contracting irrespective of what we may hear politicians say. From a fundamental perpective, they can continue to contract but from a technical perspective look or support and resistance zones for oversold and overbought regions.

Read Bijal's update here

Read Clayton's update here

Read John's update

I wish you all good dynamic trading.

Currency Analyst
Anne Chapman

Can Someone Become A Forex Trader Overnight?

Recently while have a social chat on the phone with a friend I had missed a set up and subsequently missed the trading opportunity. Trading opportunitues will be missed by all of us at certain times. This can be a result of lunch, work, holidays, traffic, sickness etc and it is a part of trading.

Everyone who starts to trade wants to make money from the markets. Some approach forex traders for mentoring while others become seminar junkies and go from one weekend seminar course to another and some others decide to learn to trade by themselves. Without doubt the best approach for anything in life would be to learn from someone who has already done it so the mentoring approach is the best, easiest and quickest. It is also false economy to think going from one seminar to another is cheaper and will provide more education than a one to one with a mentor. The information parted with by most speakers in seminars in usually limited compared with a one on one session. The reason is going in depth on a seminar with 50 or 100 delegates will cause confusion for some and thus propel dozens of questions preventing the speaker to continue with any interruptions.

So if you get a forex mentor will you become a successful trader overnight? The answer is absolutely not! If a pilot showed you how to fly an Airbus today will you be able to fly it on your own tomorrow? Of course not so do not expect the same from forex trading until you have had experince in the forex market.

What every trader who is genuine about learning to trade should know is education, time and experience is key.

In closing, I hope the above helps those of you who recently entered into the forex market world. WIth true education, persistence and time you can become a forex trader and even experience a wealthier lifestyle.

You can read our other forex blogs below.

Original Forex Blog

New Forex Blog

Congratulations to Jaco for the 1350 pips profit and money managing this week.

Good dynamic trading.

Currency Analyst
Anne Chapman

Trends

When we are approached by traders for forex mentoring we have noticed that many seem to have issues in how to break a chart down.

Chart analysis is the basis of dynamic trading and if a forex trader is unaware of this process in their trading routine then it is likely to throw the rest of their analysis off. The technical trading approach to analyzing charts is to identify which direction is the price moving. The steps below is a procedure you may wish to follow.

1. Identify the major trend.

2. Identify the minor trend.

3. Identify the support levels.

4. Identify the resistance levels.

There are many ways to identify trends but a simple process is to look for higher highs and higher lows for an up trend and lower lows and lower highs for a downtrend. On our forex mentoring webinars and one to one sessions we go into more detail in trend identification which provide much more accuracy.

Once you have determined the direction of the trend you need to analyze an entry point to trade in the direction of the trend. Trading against a trend is risky and should only be executed by experienced traders. New traders trading against the longer term trend will find they will tend to lose money fast. Trading against a trend is like driving in the wrong direction up a motorway. Indicators such as RSI, MACD, Stochastics and Moving Averages can all help in trading but this can also cause what is known as paralysis of analysis. Too much information will only lead to confusion. Keep trading simple and follow rules.

Good trading..

Anne Chapman
Currency Analyst

Bailout Could Be A Window Of Opportunity

Greetings from Atlantic City dynamic traders.

As you may know form our other forex blog that we have been away for a while which is the main reason I have been unable to update the Dynamic Trader Blog recently. We will be back in just over a weeks time I think so will then start to update more frequently.

In the mean time I am going to update the site with some pictures of our trip to the U.S. We Started in Boston then headed over to Bretton Woods followed by the Geneva Lakes then Niagara Falls before now heading over to Atlantic City. After this we will go to New York before travelling back to Boston and then UK. So far we have travelled over 1200 miles and until yesterday we had good weather.

Below are a few pictures we have taken.

    * Room where the Bretton Woods agreement took place.
    * Moose over looking the entrance at Mount Washington
    * Niagara Falls from the Canadian side
    * View from top of Prudential building in Boston

While we have been here in the U.S all we have seen on tv, heard on radio and read in the papers is the 700 Billion Dollar bailout. Javid was telling me he thought this might not be enough to bailout the U.S economy and showed me some technical analysis to confirm that. Of course we wont know if the bailout is a success until afterwards and this all depends on what the reaction is by Wall St. and Main St. once the details becomes available but you do have to think that it might not be enough. The U.S debt is massive and growing day by day. Ths U.S debt to China alone is forecasted to be 500 Billion. It seems the majority of U.S public do not seem at all comfortable with this bailout and if the trust is not there then lending will be minimized which will only serve to increase the reality that we are in a recession.

It will be interesting to see the currency pairs reaction after the bailout details become available. The Euro Dollar Advanced Get daily chart below shows area of support and resistance. Focus primarily on the black horizontal lines more immediately and look for BOB's. Please be aware the moving average is clustered with fib 50% which is a previous doji resistance from November 23rd 2007 (not shown on the Advanced Get chart below).

It will be worth watching the Euro Dollar and Dollar Yen as well as the Dollar Index this week.

Good trading...

Anne Chapman
Currency Analyst