Why Trade Forex?

I have been asked for personal mentoring many times now and most times the person asking is looking to learn how to trade but unsure what to trade on.

Most people assume the stock market is the only place to go for trading and as this is the most common form of trading it makes sense to pursue this path. However, even though it is the most common does not mean it is necessary the best option.

Some of the reasons why we believe the forex market is far superior to stocks and shares are listed below.

• Forex is open 24 hours and 5.5 days
• Trade forex from anywhere in the world
• The biggest and most liquid market in the world
• Good leverage on forex unlike stocks
• Minimal transaction fees
• Forex has a handful of major markets to choose from and subsequently one does not have to search 1000's of stocks to find a trading opportunity
• Forex trends very well

The above are just some of the advantages that forex has over stocks. That said, trading forex might seem attractive (which it is) but like anything in life you have to learn first and forex is no different. It takes time to learn to trade the FX markets and I have said to everyone I have mentored not to expect overnight riches.

If you learn to trade forex the correct way then you will have a skill for the rest of your life and that dream you may have once had of not having to answer to a boss during the hours of 9-5 is certainly that much more real.

One of my first students who now is a good friend of mine and now a Dynamic Trader use to catch turkeys for a living. Now both Barry (the ex turkey catcher) and his wife (started trading in Feb 2008) enjoy a life free of employment and spend the days trading forex and taking long walks along the hills of Scotland.

Every trader will need to go through a process of learning to trade consistently. Don't try and rush this procedure, it takes time, patience and dedication. If you are willing to commit to your learning process then you have a far better chance of being a successful trader than one that rushes in blindly and without knowledge.

Good dynamic trading.

Forex Analyst
Javid Shaik

Reasons to succeed

Surround yourself with reminders of the reasons you have chosen to do the work you do. Keep the thoughts of those reasons foremost in your mind.

Achievement never happens for its own sake. Achievement is built when there are solid, meaningful reasons behind it. The only enduring impediment to success is the lack of a reason for that success.

Connect with a good reason, keep that connection strong and you will find your way through whatever challenges you encounter. When you have a reason, you have a stake in the outcome. When you have a reason, you're able to summon the discipline, commitment, persistence and creativity necessary to get the job done.

The best motivation is not to be found in some sophisticated secret technique or procedure. The best motivation is to constantly keep yourself in contact with your reasons.

Give yourself plenty of reasons to succeed. And you most assuredly will.

Author: Rafael Espinal - The author has granted us permission.

Good dynamic trading.
Anne Chapman

Debt Trading

Some new forex traders decide to delve in to trading the markets to get themselves out of debt. Although there is a possibilty debts can be paid off from trading, I strongly advise against this method of debt repayment. The main reason behind this is psycology plays a massive part in trading and always having in your mind that the next trade you take has to make money in order to pay off the outstanding debt only enhances the possibily of that trade being a loss maker.

You see, in order to trade successfuly on the markets you have to detach yourself and be very cold and mechanical. Using hope, greed or fear is a recipe for disaster and once in that cycle it is hard to come out of it.

That aside, below I have pointed out certain factors you should be aware of prior to entering the world of trading.

1. Get your finances in order before you start to trade.
2. Get a mentor.
3. Invest in good quality software.
4. Be prepared to take time to learn how to trade successfuly.
5. Have realistic and challenging goals.

The above are 5 simple points. Of course this is not all you need to know but you can read more about forex trading on the Dynamic Trader Forex Blog.

Good dynamic trading.

Anne Chapman

Bank Holiday Monday

The bank holiday is normally quiet as far as trading is concerned on currency so I just wanted to make a quick note on keeping an eye on the USD/JPY for the coming week.

Patience is key in trading so wait for a BOB and use the ESLT. There will be potential entries on a smaller time frames (1,2,3) for you more aggressive traders but wait for your confluence of events.


USDJPY forex chart from Advanced Get.

Good trading

Missed The Overnight Trade

Good morning dynamic traders. As you know from previous forex analysis, I have been waiting for a set up on the AUDJPY for a short and last night we had it. For those that have been trading for a while you will know trading does not always go to plan and last night was one of those times.

I had placed an order to go short based on my trading model at just over the 96 figure and this morning the AUDJPY has travelled down over 150 pips at the time of writing this. Unfortunately my position did trigger and was missed by only 1 pip. When I checked the chart this morning I was very pleased to see the decline on the AUDJPY cross until that is I opened up my trading platform and saw my position had not been tagged.

So, looking at the AUDJPY the trendline has now been broken and the price is likely to go to the 94.00 mark. If it continues beyond that then 93.00 zone is likely to be the next target.

If any of the forex traders I trained reading this are in this trade then I suggest you should look to manage the trade.


AUDJPY forex chart from Advanced Get.

The Euro has found little strength and although bounced, it is clear the money that has been in this so far is the dumb money. The smart money have not started buying this pair yet. If the smart money get involved with this then 1.5000 - 1.5200 zone could be their target.

My forex analysis on August 13th which you can read here suggested the GBPUSD could find support at the 1.85 zone and sure enough it did. The support has produced a minor bounce from a larger perspective and a big bounce from an intra day perspective. If the bounce continues then near term resistance will be at the 1.8750 level.

Today's Dynamic Trader Toolkit pivot points are below.



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Good trading.

Forex Analyst
Javid Shaik

Awaiting BoE Minutes

Good morning forex traders. Today we have the BoE minutes due out which an expectation of 7-2 in favour of keeping the rates unchanged.

As we have all witnessed the Dollar has accelerated to the upside recently. The brakes are on but for how long? The trend line resistance shown on the weekly Dollar Index chart below has been tagged. The daily is giving us a minor divergence and we hit the figure.


Advanced Get Weekly Dollar Index.


Daily Pivot Points from Dynamic Trader Forex Toolkit.

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Good trading.

Forex Analyst
Javid Shaik

Our Forex Webinars Paying Off

Dynamic traders, the weekend is over at last and another forex trading week is ahead of us.

Since our forex webinars the majority of you have been making consistent profits and that is really good to hear. A voice mail from Jaco over the weekend saying he has been in good profits two weeks in a row now was excellent news and so another happy student to add to the list of already profiting attendees. Last week, Bijal had five winning trades in a row which is further good news. Congratulations to both of you and to all who are following the rules and getting that consistency. It is good to know the webinars are paying off for many of you.

Good trading very much depends on good habits. Emotion is experienced by every trader at some point and with non educated traders or new traders having to deal with it more than most others. It is exciting when the trade goes your way but disappointment when it all goes wrong. Each time a loss is uncurred a traders confidence can take a knock and a lack of confidence makes it very difficult to trade. The opposite of that is over confidence which can appear after a string on winning trades. You start to risk more than you should on each trade and you may even start to over trade. This is common in new traders and some experienced traders.

All traders need to remove emotions from their trading. Yes this is easier said than done but following and sticking to the process we have been through on our webinars will really help. For those of you reading this that were not on our webinars and suffer from emotions, my advice is to create a trading plan for yourself and follow it. In addition, get yourself good forex education to learn how to trade the forex markets consistently.

If you are shorting the EURAUD then tighten your stops as this cross is not far from the support level and as you know we could get a pullback or reversal here be it intra day or longer. Look for a BOB for a continuation but right now make sure you manage this trade.


Advanced Get Euro Australian Daily Chart.


Dynamic Trader Forex Toolkit Daily Pivot Points.

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Good trading.

Forex Analyst
Javid Shaik

Consumer Sentiment

Expect some volatility on the markets today as consumer sentiment will be released. The expectation is 62% and if the actual value released is greater than the 62% expectation then that will normally indicate strength for the Dollar.

Euro had a minimal intra day bounce before it's downtrend continuation but a further continuation or a reversal could pend on today's consumer sentiment.

We took another position on the AUDJPY with 80 pips in profit zone and managing the trade. It is unlikely we will hold this position over the weekend.

Below are today's daily pivot points.


Source: Dynamic Trader Forex Toolkit.


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Good trading.

Forex Analyst
Javid Shaik

Majors Reverse

Good morning forex traders. Most of the majors have reversed and gave the reversal signal with a candlestick yesterday.

Further bad Japanese data is fueling the concern that Japan is heading for a recession. We must not forget that the US concerns for a recession is still very much a focus. The sub prime mortage crisis overshadowed the US Trade deficit.

The very oversold Euro has shown a degree of strength with some buying after the technicals showed a reversal. Yesterday this pair sank further and if aggressive traders are looking for long positions here then look for an entry that requires minimal stops. Remember, although this pair is oversold it is still against the trend.

The Sterling is not looking too healthy. It's recent collapse of the trend line and support level on the weekly time frame could be a fake breakout but needs to be watched for a possible further decline in the near future. Convergence is prominent but this might suggest only a minor pullback. If the pair continues to decline then the next big support zone is 1.8500.



Source: ESignal. Weekly Pound Dollar Advanced Get Chart.

The Dollar Index may help with the confirmation of the Euro and the other majors reversals. The weekly forex chart below shows the Index in a long term downtrend with a reversal to the resistance trendline.


Source: ESignal. Weekly Advanced Get Dollar Index Chart.

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Below is todays pivot points for the major currencies.


Source: Dynamic Trader Forex Toolkit.


Good trading.

Forex Analyst
Javid Shaik

Euro Swissy Bounce

Our previous forex analysis showed this EURCHF in a triangle formed resistance which is still in place.

The Euro Swiss franc chart shows the cross is in a range bound formation after a recent double top. Until yestersday this cross had produced approximately 200 pips before I was stopped out with a reversal at the institutional moving average. You will notice that is also not too far from the trend line support level and the figure and stochastics shows proximity to oversold territory.

So with that what is the direction of this cross in order to trade it and profit?

This cross is in a range and you know the rules of range bound activity. We will now wait for the set up to take place and let price dictate the position we will take. If the Euro Swissy deals above the resistance then apply the filter and look to enter long. If we break the trendline then a short with a filter to the next support is at 1.6000 zone is favoured.

Although this cross is in a range it is likely to provide a 100+ pips profit soon.


Daily Euro Swiss Franc Advanced Get Chart.

Below is the daily pivot points for the majors.


Source: Dynamic Trader Toolkit.


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Good trading.

Forex Analyst
Javid Shaik

Understanding Forex Charts

Good morning dynamic traders.

The Euro Dollar had reached and breached the support level where the double bottom resided. It is now at 1.5000 zone and finding support with a bounce overnight of 100 pips. The 1.5000 is a previous resistance and a psychological support. This pair is deep into oversold levels so we pullback soon is likely. However, a pullback and continuation to the downside should not be written off but a pullback non the less.

The Dollar Swiss Franc is close to a previous resistance and just popped above the institutional moving average on Friday and overnight started to head to the downside. This could be a pop and drop or a reversal and it is too early to tell so price should take us into this trade unless those of you who are aggressive traders positioned yourselves last night for a pop and drop. This too has moved in the region of 100 pips to the downside overnight with support at 1.0730 level.

The Australian Yen has made us good profits and intraday has reversed. We were stopped out overnight on this cross but are looking for another entry riding the short towards the 96.00 zone. However, we may have a pullback before this happens so patience maybe necessary.

Todays daily pivot points are below.


Source: Dynamic Trader Forex Toolkit

Have a good trading week.


Forex Analyst
Javid Shaik

Euro Support Breached

Good morning dynamic traders. I woke up to see the Euro has breached the support level of 1.53 which has now changed the medium term outlook on this pair. This is as a result of Trichet suggesting concern in the Euro zone growth. Further support at 1.5000.

The Euro Dollar short term is mixed.
The Euro Dollar medium term is bearish.
The Euro Dollar long term is bullish.


Advanced Get Euro Dollar daily chart.

On yesterdays webinar we discussed further move south for the AUDJPY. Overnight on weak Japanese data the Yen continued the downside against the Aussie Dollar providing 100 pips additional profit and the USDJPY also continued the uptrend.


Advanced Get Australian Dollar Japanese Yen daily chart.


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Good trading.

Forex Analyst
Javid Shaik

The Loonies Breakout

Good morning forex traders.

The Loonie has had a breakout and reached the 1.0500 zone and finding some resistance there this morning. Although a possible pullback maybe possible, as dynamic traders this is not a good trade to enter into at this point as we do not have our confluence of events.

Yesterday the USDJPY has also broken out from the resistance level and we have been stopped out on our second position on this trade. Price reached just less than the figure and is at 109.41 at the time of writing.

We have rate decision and Trichet talking today so you may want to stand aside. Both the ECB and UK are expected to leave rates unchanged.

The falling oil prices is supporting the Dollar strength. Below is the weekly chart of the Dollar Index Futures. Notice the long downtrend and trendline resistance.


Weekly Dollar Index Futures Advanced Get chart.

Below is the daily crude oil chart. Notice the trendline break with divergence at the figure.


Daily light cride oil Advanced Get chart.



Above are today's daily pivot points.

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Good trading.

Forex Analyst
Javid Shaik

Dollar Strength

Good morning dynamic traders. Since our July 25th GBPJPY forex analysis this cross has made 200-300 pips worth of profit. It is now sitting on a trend line support and those traders in this position should manage the trade and scale out.


GBPJPY chart courtesy of Advanced GET. Data provided by eSignal.

The USDJPY in contrast has been climbing although the momentum in the upward move has been very minimal. This is as a result of the resistance level 108.60 which we have tagged today for the third time. USDJPY is now at a triple top formation and we are looking for a breakout or breakdown at this point.

MACD has presented us with a divergence and Stochastics is overbought. An OCO order is a good choice here for those unable to check often. Alternatively take the direction of the confluence of events with a well placed stop loss

.
USDJPY chart courtesy of Advanced GET. Data provided by eSignal.

As expected by many analysts, the rate decision yesterday was unchanged. The Dollar made some gains yeaterday as the market is convincing itself a bottom is in place and commodity currencies are weakening. Fears of a US recession is increasing even though the USD has strengthened be it at a much reduced pace.


Dow Jones Advanced Get chart. Data supplied by ESignal.

The Euro Dollar is in the middle of a downtrend as supports are breached but still shows greater momentum to the upside. As previously mentioned, a break of 1.53 can change the outlook.

Todays pivot points are below.


Dynamic Trader pivot points produced by Dynamic Trader Toolkit.

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Good trading.

Forex Analyst
Javid Shaik

Rate Decision

It is very unlikely the Fed will raise rates today. It wont make sense to raise rates while unemployment claims rise. In fact, the way things are looking, the Fed may not even raise rates towards the end of the year.

The USDCAD had produced a breakout but this maybe false so beware of that.

The USDJPY was on both our watchlists from last week as we mentioned on this site and today we triggered the trade. As mentioned last week, to be a dynamic trader we sometimes have to stand aside an await the appropriate time for entering. Well, the set up finally arrived and we have 60 pips profit this morning.

Good trading

Forex Analyst

Javid Shaik

UK Bank To Announce Losses

Good morning Dynamic Traders.

The better than expected NFP sent the Dollar higher against some majors on Friday.

The Strerling has dived against the Dollar at the open of the European session this morning based on rumours that a major bank is due to announce a big loss here in the UK. The Dollar is fairly steady at this point against the other currencies. At the time of this update the Cable is at session lows.

The daily Euro Swissy is in a triangle formation below. There is a set up here that is likely to make some good profits.


Advanced Get chart. Data from ESignal. Read more...

Look out for US ISM and the Fed's rate decision tomorrow and on Thursday's the BoE rate decision. These will be market movers and volatility will be high.

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Today's pivots are courtesy of Ash Shah.

Good trading.

Forex Analyst
Javid Shaik

All Eyes on Non Farm Payroll

Good morning Dynamic Traders,

Many of you should be managing your profits on the USDJPY this morning based on previous forex analysis. The pair has provided 100 pips since yesterday for aggressive traders and about 50 pips for conservative traders. Either way, Dynamic Traders have made money on the USDJPY for little work.



Advanced Get USDJPY 4 hours chart. To read more about this software click here.

Today we have Non Farm Employment Change out and the expectation is -75k for this month. Expect a high degree of volatility today and especially around 1.30pm BST. Prior to that we have some other news items out for the Euro zone so for those of you who are not wired for action and don't have a requirement for speed then turn off your trading programs and come back to it once the news it out of the way. Those who have a need for speed should be very carefull as days like today empty out many dumb moneys trading accounts. Should you decide to trade today then make sure you have stops in place.

Hope you all have a good weekend.

Good trading.

Forex Analyst
Javid Shaik