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