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Javid Shaik has been trading since 2002, specialising in the Forex market but with considerable experience trading stocks & shares, indices and commodities on a number of platforms. Born in London, Javid has always been an independent thinker which, coupled with a background in IT, has... More
My company:
Dynamic Trader
My blog:
The Dynamic Traders
  • Euro Dollar Beginning To Stall

    Hello trend traders,

    As per our previous email on the Euro Dollar, we can now confirm price seems to be stalling at our MoB. Remember when in doubt it is best to stand aside but in this case, we are already involved with long positions in this currency. Although as the trade is free from liability, we actually do not have to be concerned but do need to manage the trade so not give back our profits to the market.

    Reasons for management:

    • Weekly suggesting a bearish wave 4 is almost complete
    • Weekly Stochastic is bearish
    • Daily suggesting a bullish wave 5 is complete
    • Daily Stochastic is bullish
    • Daily divergence long term and short term

    Based on the logic above, price may start to decline or even find a burst of strength, fail at the half figure resistance zone and then decline into the weekly wave 5 pattern. Regardless of the above being the right outcome or not, we still walk away with a very good profit. As usual we will wait for price to indicate the continuation or change of trend then we can consider our new entry decision. As price is range bound, we want to refrain from entering any further positions for the moment but will continue to manage the trade locking in more profits each day if possible.

    (click to enlarge)

    Below is the video on the Euro Dollar.

    Jan 24 10:34 AM | Link | Comment!
  • Good Trading Software

    Hello traders,

    One of the most common questions we are asked is what trading software do we use or recommend?

    Traders will know there are so many trading software packages available on the markets which makes it virtually impossible to decide which ones are good and which ones are not so good.

    When I started out with my trading journey, the obvious choice was a couple of free packages. When I attended my first trading seminar I decided to purchase the trading software the speaker was using during the course. In total I have purchased a lot of different packages and often my decisions were based on the software developers marketing and promotions of their products. You can often get taken in by good marketing skills.

    From all the trading software packages we use here, two stand out the most, Advanced Get by eSignal and Tradestation. Both packages are different and to sum it up, I would say Advanced Get is very much a technicians charting package and is best for those traders who like to apply indicators and studies to the price pane. Tradestation on the other hand can also be used from a charting perspective but is more geared to systematic trading. Both packages are excellent.

    If I had to choose between Advanced Get and Tradestation then I think Advanced Get would just edge it. However, me and my partner and all the Dynamic Traders all use Advanced Get as our main trading software. Almost all of the people I have mentored in trading have opted for Advanced Get after seeing it in action.

    You can read more about Advanced Get on our trading blog at www.thedynamictraders.com/software

    You can also read the Dynamic Traders daily analysis here.

    Good dynamic trading...

    Javid Shaik

    Disclosure: No positions

    Jun 18 2:38 AM | Link | Comment!
  • Trend Trading the Dow Jones

    Yesterday the Dow Jones brokeout of it's November range and started to show signs of strength again.  While some traders maybe happy at the thought of a bullish market and up trend continuation, we need to identify if this is really the case or is it a fake breakout yet again.

    Advanced Get users applying Stochastics will see the false bar indicates an uptrend continaution in place of an overbought market.   Aside from identifying the trend, if we look at our main indicator, we can see price has closed above the November range and around the July 2011 support/resistance point.  This could indicate a false breakout and if price dips into it's prior trading range, then this market has no real belief in an uptrend.  If the price does continue the journey up then the red shaded area shows the zone of resistance.  A top fake breakout possibility aside, clearing this resistance area and figure could provide the belief and momentum for an up trend continuation allowing the bulls and trend traders to take full advantage of the breakout.

    It is too early to jump into this market as a bull and unclear if a bearish stance is the right choice.  When faced with difficult trading decisions, it is always best to stand aside and wait for the market to tell you what it is doing.  We should always refer to our Trading Tools to help with our decision making but sometimes it is just best to ignore a market until there is a good reason to trade it and right now, this market is devoid of a clear trend and chart pattern and so should be ignored and the best position is being on the sidelines.

    Jan 04 7:12 AM | Link | Comment!
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