How To Choose A Forex Broker

Forex brokers are in abundance and that makes it very hard for someone new to forex trading to decide which is the right company to go with.

First off, I am not an Introducing Broker or affiliated with any forex broker. An Introducing Broker otherwise known as IB or an affiliate is a person or organization promoting the broker in return for some form of commission either once off or ongoing. I have previously promoted a particular company from my website but soon realized that this is not in the best interest of my readers and now do not promote any forex brokers. Quite often IB's or affiliates will advertise brokers on their websites as graphics or banners. I was on a seminar where the seminar company was heavily promoting a broker and offering all sorts of freebies if we signed up this weekend. It was clear they were some how associated with the broker and they were serving their own needs and not the seminar attendees requirements.

Never rush into signing up with a broker. You wouldnt buy a car without knowing something about it so don't rush into opening a broker account without knowing more about them.

Choosing a forex broker can be confusing but here are some tips to help you identify the qualities your broker should have.

Low Spreads:
The spreads is the difference between the buy price and sell price and is measured in pips. Compare spreads across a few brokers and look for the brokers with smaller spreads.

Accounts:
New forex traders should look to start trading with either a Micro or Mini account. Once experienced then a trader can move onto a Standard account. Your broker should offer either a micro or mini account.

Regulation:
The forex broker should be registered as a Futures Commission Merchant with the Commodity Futures Trading Commission (CTFC).

Customer Service and Speed:
Trading in forex is available 24 hours a day from Sunday evening until Friday evening. Customer service should be open during these exact times. Try calling the trading desk or helpdesk to see if they are open and check the speed at which they answer the phone. When in a trade the last thing a forex trader wants is to be kept waiting for the phone to be answered.

Trading Platform:
If you use many different computers you may prefer the trading platform that is web based. If you will be trading from just one computer all the time then downloading and installing the software to your computer will be fine. Check to see if your broker is software based or web based. Some brokers offer both options which would be the better option.

How Many Currencies:
Check to see what currencies they offer trading on. As a guidance confirm they trade most of the major pairs and all the ones that you may like to trade in addition.

Leverage:
How much leverage does the broker offer? For inexperienced forex traders using mini accounts should not use too much leverage and 100:1 would be adequate in most cases.

Money:
Check what the procedure is to fund your account and also to withdraw your profits including the time it takes to do both.

Tools:
What tools are offered with the account? Some brokers offer an array of charting tools and although useful and well worth having I do not recommend relying on these solely for your trading. You get what you pay for and even though any free tools offered with the trading account is always great, a trader needs to invest in good tools to become a good trader.

The above is The Dynamic Trader guideline to help choosing the right forex broker.

Good dynamic trading...

Forex Analyst
Javid Shaik

Trading Indicators

From the large number of emails we get at The Dynamic Trader asking us which indicators we use and what are the best ones is one of the most common questions. Most new traders are always in search of the holy grail and especially of the one indicator that is always right that tells you when to buy and sell making you lots of money with very little or no work at all. The truth is no indicator like that exists!

The most common trading indicators are Moving Averages, RSI, MACD and Stochastics. These are the ones you will commonly see on most traders charts and on ours too. A common misconception is that the more indicators displayed on a chart the better the analysis will be. Filling the chart area with numerous indicators is only going to lead to paralysis of analysis.

Keep your chart space fairly simply and clear and don't get tied down with what the indicators are saying all the time. Indicators are meant for confirmation only and relying on them heavily will not provide accuracy in your trading. Price is the most important aspect of trading and leads the indicators.

Some typical settings traders use for the common indicators are listed below.

Moving Average - 50 or 100 or 200 EMA or SMA
RSI - 14
MACD - 12,26,9
Stochastics - 8,3,3 or 14,3,3

Again, please use indicators to confirm what you already gleaned from the charts. Concentrating on indicators and then price is a very blinkered form of trading.

Visit our other forex blog at www.fxcps.com/blog

Good forex trading...

Forex Analyst
Javid Shaik

Become A Dynamic Trader

Today we are going to share the secrets to becoming a successful dynamic trader.

Most traders starting off assume it is having an indicator that is never wrong and they go in search of this elusive accurate indicator. Others think it is a 100% accurate strategy and they go off in search of this never failing strategy. Well, sorry to say it is neither of these. In fact the points that make what we call the dynamic trader are as follows.

• Know where and why to enter in to a market

• Know where and why to set your stop loss

• Know where to set profit targets

• Manage the trade

Mix the above with good forex education, add a rule based trading plan and throw in a trading log and you have a recipe to become a dynamic trader. Sound too simple to be true to some of you? Right now, some of you reading this will go off and spend thousands on a black box system or a flashing green and red light telling you when to buy and sell software or a fee paying tip service. How you decide to progress is your choice but the end result will be the time tested points above to become a good forex trader and that has not changed since 1792 when the NYSE was formed by 24 stock brokers and merchants.

Daily forex analysis here.

Good forex trading...

Forex Analyst
Javid Shaik

The Need For Stop Loss

Here at The Dynamic Trader we have seen hundreds of individuals wanting to be traders.

For some reason many new forex traders we have come across seem to find one aspect of trading dull. We are talking about money management and like it or not, money management play an extremely important part of trading and to ignore it is to admit defeat before the battle even begins.

Money management not only restricts your losses but it can also provide you your profits.

Before taking a trade you need to stack the odds in your favour. This is something we go through on our webinars and forex mentoring sessions and is much too vast a topic to explain in a few paragraphs here. Once the odds are stacked in your favour then you need to identify your entry point. After that an exit point needs to be established and this is where the stop loss comes in to action. Your stop loss is your safety net and very important in limiting your losses and giving you the ability the trade for another day.

The positioning of your stop loss is as important as when to enter a trade. We have seen many traders scared of possibly having a big loss that they place the stop loss only a few pips from the entry point. This scared method of trading inevitably leads to more losses than profits and finally a disgruntled trader.

Stop loss levels are very important and unless a trader uses them correctly they will only cause losses by a trade taking out your stop and then reversing and going in the direction you were hoping for in the first place.

Hopefully those of you we at The Dynamic Trader have mentored are applying our strategies for not only entries but also stops.

Visit our other Dynamic Trader blog at www.fxcps.com/blog for further forex information and daily currency analysis.

Good dynamic trading...

Forex Analyst
Javid Shaik

Good Trading Software

With so many trading software packages available, it is almost impossible for someone new to trading to decide what trading software package is the right one to buy.

First of all the old saying you get what you pay for holds true but not entirely. You see some packages in our opinion are way over priced while others are free and for good reason.

Having tried, owned and used many stock market and forex software packages available on the market today I have filtered down my favourite packages to Advanced Get and Tradestation.

Advanced Get is a very user friendly and powerful package that has and easy to use interface and not cluttered with buttons and icons making it almost impossible to navigate like some software packages around.

Tradestation is also a great trading software with certain advantages such as easy back testing and a live trading platform built in. However, it requires more time to learn this trading software and is not so easy to use initially for beginners.

In addition to the above another package that should also be considered is Metastock but again this is a very hard product to learn and not recommended for beginners.

We have and use all the above trading software packages and if you are interested in purchasing either Advanced Get, Metastock or Tradestation then feel free to contact us and we can organize a generous discount for you.

You can read more about some of the trading software packages by clicking the links on the right side of this blog.

If you want to read our daily forex updates then please visit our other forex blog here.

Good dynamic trading...

Forex Analyst
Javid Shaik

Trading To Be Debt Free

At The Dynamic Trader we have mentored many people to success. Some students who approached us for mentoring decided to delve in to trading the financial markets to get themselves out of debt. Although their is a possibility debts can be paid off from trading, we strongly advise against this method of debt repayment.

The main reason behind this is psychology 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 possibility of that trade being a loss maker.

You see, in order to trade successfully 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.

• Get your finances in order before you start to trade.

• Get a mentor - We can help here if you are interested in forex.

• Invest in quality software - We can advise you on this.

• Be prepared to take time to learn how to trade successfully.

• Have realistic and challenging goals

The above are 5 simple points. Of course this is not all you need to know but it is a starting point.

Forex analysis blog.

Good dynamic trading...

Forex Analyst
Javid Shaik

Gambling On Forex Markets

Trading without a strategy is like driving without brakes. Any trader going into the markets without a good strategy or system is destined to crash and burn.

To be a Dynamic Trader, every trader should know why they are about to enter a trade and the strategy they are applying. In addition they should know where they are coming out of the trade and the reasons behind it.

Entering on a hunch is not trading, it is simply gambling your money away. Without knowing these fundamental basics of trading will make it almost impossible to capture profits from the markets on a consistent basis.

The trader needs to know the strategy he or she is going to use and then stick to it. Many traders chop and change strategies and it is a good idea to use one strategy consistently to identify if it works for you. It is important to note that the same strategy will not neccessarily work for different traders. This is mainly due to the traders profile and as we are all unique our trading will be personalized.

To trade and consistently profit from the currency markets a trader must have discipline. A forex trader, must trade with discipline and rules as the forex market trends very well and has a lot of volatility. Of course this holds true for any financial market but due to the liquidity in the forex world it is more important for a froex trader to be a disciplined trader. Discipline will help become a dynamic trader by removing the emotion from trading.

We mentor individuals in using a dynamic trading approach to trading the forex markets. Mechanical and clear cut strategies are required to trade the markets and gain consistent profits.

Forex daily analysis.

Anne's forex update.

Good dynamic trading...

Forex Analyst
Javid Shaik

The Dynamic Trader

What makes a dynamic trader?

Dynamic traders can emotionally detach themselves from the market. An emotional resilience is undoubtedly the biggest advantage when trading the markets. The markets consist of human emotions and also over 90% of losing traders (mainly as a result of emotion and lack of trading education). Detaching emotions from trading is 75% towards a successful dynamic trader and many think this is easy to do but let me tell you it is not. This part of a traders learning curve will really test their resolve and will no doubt take a while to learn and overcome. A trader never really becomes 100% emotionless from trading all of the time but can learn to trade with discipline which methodically removes a lot of greed and fear.

In addition a constant desire to improve is essential. Dynamic traders - as the name suggests - cannot remain static and need to be able to adapt to the ever changing market conditions.

The dynamic trader does not look to chase markets or incorporate heavy risks into trading but uses a structured rule based form of trading which involves discipline and intelligence with a degree of creativity which I have demonstrated on my live one to one mentoring sessions.

Dynamic traders look for high probability set ups with the odds stacked in their favour as opposed to trade and pray. Many traders hold on to losing positions and pray that price goes back in the direction they are trading in. This is a recipe for disaster and dynamic traders always cut their losses quickly giving them the ability to trade another day.

A traders approach is very important which is why new traders should aim to become dynamic traders.

Read our other dynamic trader forex blog.

Read Anne's forex blog update today confirming the 500 plus pips gain.

Forex Analyst
Javid Shaik

Forex Advantages

I have been asked for 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 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 here at The Dynamic Trader 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 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 use to catch turkeys for a living. Now both Barry and his wife enjoy a life free of employment and spend the days trading forex and taking long walks along the hills of Scotland.

Read FXCPS.com forex blog

Forex Analyst
Javid Shaik

Trend Analysis

When I am approached by traders for forex mentoring I 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 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 mentoring 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, Moving Averages and Bollinger Bands 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 dynamic trading...

Forex Analyst
Javid Shaik

Forex Seminar

Many traders find that after they have been trading for a while the magic wears off. Every trader needs to remember why they came into trading in the first place. For me it was a weekend seminar that Anne had booked for us 6 years ago last month. This was a life changing moment even though at the time I complained this is likely to be a waste of money. The speaker demonstrated how easy it was to trade and make lots of money and once he had everyone hypnotized with his visual presentation and slick talking he proceeded to up sell us to a more advanced course. I attended this only to find the course was anything but advanced and did not give me the information I needed to make money from the financial markets. What it did give me though was my the desire to be financially free so I decided I wanted to learn how to trade and so my trading education began.

After numerous courses and mentoring in the UK, US and Europe I managed to begin to develop my trading. I have spent a lot of time and effort learning how to trade, creating strategies and applying them to the markets and at the time my motivation was to be free of debt and employment. I have not worked in 6 years!

I achieved my goals from back then and look back at the time when I was going through my steep learning curve and I can honestly say it was so worth every late night, social weekend sacrificed, skipped breakfasts, late dinners and sometimes total frustration to getting to where I am now.

Today's forex update is really a thank you to all those who have helped me with my trading journey. Some of my trading mentors are great traders and even though back when I first started trading they charged me an arm and a leg to learn from them, again I will say it was well worth it.

There are too many people to thank here but you all know who you are and I know some of you read my forex blog and I want to say a big thank you to all that have helped me over the last 6 years. It was not easy but it certainly was fun.

It is easy to get wrapped up in our every day routine and quite often many of us will forget why we do the things we do. Why wake up at 6am to catch the train for 7 to get to work for 9 to come home for 6 and get to bed for 11 only to start the same routine again the next morning? I know this provides an income at the end of the month but does it provide financial freedom? I'm sure some will say yes but for most employees it does not.

If ever you have thought about getting financial freedom then perhaps you too should look at trading the financial markets. In 2002 I could not see a way out of my financial situation and now I cant believe I was ever in that situation.

Trading is not fun all the time and has many moments of being unappealing but in the long run it can hold an extreme amount of financial and emotional gratification. Anyone reading this thinking about entering the trading environment, please understand trading is no different to learning how to be a pilot, doctor or racing driver. It will take time and practice like with any job but in addition also takes patience and self control.

Once again thank you to all that have helped me become a dynamic trader over the last 6 years.

Click the link to read our other daily forex analysis.

Good dynamic trading...

Forex Analyst
Javid Shaik