Common Trading Questions
Q. Why is your training course limited to Forex?
A. Our training course concentrates on currencies for several reasons. If you are new to trading, one of the biggest problems people face is the sudden enormity of the markets. There are thousands of stocks, indices, commodities, etf’s, funds, currencies – and more – worldwide from which to choose. It can be a daunting task to know where to begin. By limiting yourself to one market (Forex) you can concentrate on learning to trade rather than learning how to sift through a lot of data. One of the advantages of currencies is that they trend well, so although you may be limited to about 25 pairs (if you stick to the most liquid pairs) you will still make excellent profits. Once you have become proficient in trading you can branch out, using the same or similar techniques, into other markets.
Q. What is Technical Analysis?
A. Technical Analysis uses various tools to seek out patterns in charts. As the markets comprise of people trying to predict what future price will be, the data will at times reflect their mass behaviour and responses. For example, if you were to call ten of your friends, probably about 50-60% of them will say “Hello?” on answering. That’s our behaviour and response: the phone rings, you pick it up, you say hello. So, when we see patterns in market data which have happened countless times before (like the phone ringing), we can predict with a good probability what the response will be (answering the phone with ‘hello’).
Now, some of the time the response is not predicted. It might be a slight variation or it could be something totally unexpected. It’s important to understand that the markets can be unpredictable, too, and to take care of our money so it is not overly exposed to unforeseen events. As part of our course we teach money management so you are never ever over-exposed to unpredictable events.
Q. What is the best trading software?
A. We have used several different trading software packages, but our choice and a favourite among our students is definitely eSignal AdvancedGET.
We know some training companies promote their own software while others suggest you don’t even need one, but we disagree. In-house, basic or free software will never have the functionality or ease-of-use of a professionally designed trading software package. We think trading should be simple, so having a package which is reliable and easy to use is essential.
While we prefer to use some discretion in our trading, we do use Metastock a lot of the time to identify our trade set ups for the day and week ahead.
If you are interested in purchasing either software, please let us know as we can arrange a substantial discount on your behalf.
Q. How much money do I need for a trading account?
A. There’s no minimum required to open many trading accounts. You may find that it is difficult to take out every trade you’d like to if you have a small account (£500 to £1,000), but another advantage of currencies are there are accounts where you can trade very small amounts indeed. In fact, while you’re learning to trade this is a good idea for everyone as you can learn your technique without risking too much capital. You can add to it later as your confidence and understanding and profits grow.
Q. Why do 95% ot traders fail?
A. Many traders cut corners and try to trade without good trading education and use cheap or free trading software. Others over trade and lose any profits they may have made or risk too much money on a single trade, again because of the wrong education.
Q. How does the Dynamic Trader Training Course differ from other courses?
A. As we haven’t tried all the other courses out there, we can’t comment on how our course differs from all others. However, we have attended many courses in the past and have been disappointed in the lack of clarity in them all, which is why we started to teach. When looking at a course, find out how long the trainer has been trading for a living – often they are not full-time traders at all and are often employed by companies to teach. Also be aware of ‘black box’ systems – these will give you buy and sell signals without you ever understanding how they are generated. We think you should learn why you’re taking out the trades that you do, that’s why we teach you exactly how our strategies work and there are no secrets or information withheld from you. We believe in our students becoming independent traders.
Q. Can anyone learn to trade?
A. Academically, so long as you can add, subtract and divide then you can learn to trade. It’s quicker if you can do this in your head, but calculators are allowed! If you remember from school about moving averages and standard deviations you’ll have a bit of a head-start but if you don’t, don’t worry – you don’t actually have to calculate anything as our Trading Tools do it all for you automatically. So long as you understand the concepts (which we always explain fully to you) you’ll be fine. However, if trading was that easy everyone would be doing it.
Unless you get proper training, you will probably blow your trading account within a few weeks or months. This happens to most people who enter the market without a solid understanding of the markets. You need to learn proper strategies, proper money management and have proper support while you learn the psychological lessons of the markets.
Q. How long does it take to learn to trade?
A. We can’t speak for other courses, but our students are all able to trade well within 3 months. It takes a little longer to really make good returns, and that will vary from person to person and their time commitment. Our most successful students have made good profits within about 6 months, but others have taken longer.
Q. Do I have to be at my computer all day?
A. No! We learnt to trade so we could have more free time to pursue other interests so being tied to a computer all day makes no sense. We don’t recommend Day Trading as it is not just stressful but, except for a very few professionals with big funds behind them, it’s not profitable either. Most of our strategies enable you to spend just a few minutes (20 at the most) analysing, setting up and managing your trades once a day at a time convenient to you (although first thing in the morning or late evening are the most efficient times of the day). Sometimes, for a few strategies, a set-up or money management event might occur in which case we use our fail-safe entry, there is no reason to watch the screen all day.
Q. What makes a good trader?
A. For us trading consists of having good analysis to enter the trades with the highest likelihood of success, managing the trade to cut losses short and get the maximum return out of the trades that go our way. Sounds simple? That’s because our strategies break the process down into easy-to-follow steps. Within 3-6 months the majority of people we train understand exactly what is involved.
Q. Are your trading strategies difficult to learn?
A. New traders are under the illusion that complex systems are better than simple ones. A busy and cluttered system has too many elements that can be easily broken. Simple trading systems are easier to understand and use and will always provide a greater chance of success than a difficult system or even a black box for that matter.
Q. What is a Black Box system?
A. A Black Box is a system that utilises pre-programmed algorithm to return an output to the user. The logic, or workings behind the output are not divulged to the user at any stage. Simply put, these systems supply your computer with blind buy and sell signals. We do not recommend this method of trading as they do not work and if they did then banks would not need trading desks or pay out large salaries to their traders as every trader in the world would just pick up a Black Box system for $99 and become a multi billionaire. To truly be a successful trader, you need to understand the market and also your trading logic.
Q. Can I make a monthly income to replace my current salary?
A. Yes and no. Once you have built up your trading account and the annual return is equal to or greater than your current salary then you are in the enviable position to retire from your job if you so choose. However, you will not receive a set amount every month. Sometimes the markets can go weeks without offering a good trade. We have found over the last ten years, in times of boom or bust, we get one really good “long term” excellent trading period and 2-3 good “medium term” trading periods a year. So the money management skills you learn as a trader need also to apply in your personal life – to take the very good with the not so good.