The James Dicks Blog

I wanted to take some time and create a series of blogs that will help Forex traders better navigate the “shark infested waters” of the Spot Forex over the counter marketplace.

I have spent a tremendous amount of time over the last few months researching the forex brokers. I want to share what I have learned and how to better combat some of the tactics that brokers take to help them insure a better bottom line.

Let me just say, that I still love trading the Forex market. I think it is a great place to build a profession. The Forex market is still the largest financial marketplace in the world. To help insure that you are one of the successful traders in this marketplace you will need to start considering some positive steps.

I would first start out by calling your Broker, ask them if you are on STP, Straight thru Processing. You want to make sure that your broker is not trading against you. I would send them an email to make sure that you have whatever they tell you in writing. What you will more than likely get from your broker is Bla Bla Bla-meaning “We don’t have a dealing desk” – Well all you have to do is call your broker tell them you would like to talk to the dealing desk to place a trade. Guess what? Bet you get the so called nonexistent dealing desk.

Just because they say they don’t have a dealing desk doesn’t mean they don’t have one. You just have to ask them to put it in writing that they have your account on STP, if they won’t find a new broker. When I Was introducing customers to the Forex Brokers I asked that my customers be put on STP, I even had the broker put in writing that my customers were on STP, Again not to beat this point to death, but you can only do what you can do, just get in writing that your broker is using STP for your account. You do not want to be associated with any sort of aggregated orders.

Also take special note when you are trading as to latency-How slow your order is filled, slippage, whether you get the price for your buy or sell that you executed the trade at, or error messages. Any and all of these and others could be an indication that something is wrong, that the broker could be trading against you. Even if they tell you that your account is on STP. Even if the Broker says they don’t have a dealing desk. They could have just simply removed the vocabulary word dealing desk and replaced it with a “server” automation of sorts.

To not sound so negative you can still trade this market and find good brokers, there are lots of traders that make money trading Forex. If you want to be one of those traders then you need to become aware and understand the Forex market place, recognize that the Forex brokers are in business to make money. Then arm yourself with all the knowledge tools and strategies you can to place solid trades.

Watch for my next blog on more strategies to help you place better trades and beat your broker.

Happy Investing-James Dicks

I don’t know about you but, so far, this year has been very busy for me. Dealing with the current state of the economy, politics, trying to understand the new paradigm of American commerce, more politics, the housing dilemma, stocks go up big…then go down big, more politics…well, you get the message. From the moment we wake up in the morning until the time we go to bed at night, there seems to be some kind of controversy going on and, frankly, it’s getting tiresome. We struggle daily to make more money so we can buy more things and many times it appears that our 20th Century pursuit for a life of personal happiness and material comfort has become a real chore for us in the 21st Century.

Traditionally, Americans have tried to attain what became known as the American Dream through hard work and cautiousness as it pertained to their personal finances. This approach helped our grandfathers develop a solid financial foundation that insured a comfortable life and a tranquil retirement. But in the past few decades those values have been pushed to the sidelines in favor of a “get it now” financial attitude tied to a “get rich quick” philosophy. Our population seems to be constantly searching for instant riches through state sponsored lotteries, game shows, pro sports, show business or litigation. Many psychologists actually believe that the idea of quick riches has served to deteriorate our traditional American work ethic.

A few decades ago, the vision of the American Dream was essentially universal. You attained it by earning and saving enough money for an education for yourself and your children, a home in the suburbs, a dependable car, through a first-rate job to sustain the dream. But today it’s different for each one of us – today the dream is how you personally define it. For many of you, trading is a method of attaining the dream but remember that trading is not a get rich quick scheme but rather a technique of adding to your personal wealth in a methodic manner.

Trading will allow you to adjust your personal prosperity at your own pace based exclusively on your own parameters – things like risk tolerance and your specific financial goals. But never doubt that you will have to work industriously and deliberately in order to excel in your trading. It takes some planning, some preparation and some education. It also takes a calculated work ethic to attain a positive end result. There is no “get rich quick” plan – it’s going to take some time and you have to be prepared to expend the energy necessary to attain a successful final outcome. A winning trading experience represents how Americans used to reach for the dream – with a determined and unwavering resolve while developing a sense of self-reliance and confidence in their plan.

Ideally, we might all feel more secure and content if we could go back in time and live a less complicated life but that’s not going to happen. It is time to develop a new principled strategy that will insure growth in the short-term and in the long-term.

Today, American society seems to be extremely focused on the intrinsic power of the almighty dollar and, many times, totally discount the joy we can find in our lives for reasons other than material gain. We should remember that while money is an important aspect of life, it certainly isn’t something that genuinely brings joy – you can have lots of money and be totally miserable. I believe it’s time for us all to redirect our attention and values to the things that are truly important in life in an effort to not just attain, but enjoy, our personal American Dreams.

I wish everyone a very joyous and profitable 2010, but in order to make it profitable, you must start planning. I’m not going to tell you to make resolutions for the New Year (resolutions normally fall by the wayside very quickly anyway), but rather organize and design a positive strategy to actually change your habits and develop individual goals. This kind of action will better secure your success in obtaining meaningful returns in 2010 through a meaningful reorganization of your financial life.

Goal setting is the top priority. Determine specific and attainable goals, short and long term, and make sure you write them down. Physically writing them down gives them power. The act of writing and visualizing your goals makes it much more likely that you will actually achieve them.

You must also understand your current financial situation. Add up your assets and your liabilities. Find out how much you owe on your home, your cars and your credit cards and conclude how best to whittle those liabilities down a bit during the year ahead. It’s always a good idea to get rid of debt, especially high interest debt. The beginning of the year is also a great time to establish any new insurance needs. Examine the validity of your current life, disability, home, health or auto policies and decide whether changes are required.

The best way to create a solid financial plan is to save, save, save. The general rule is to put away 5 percent to 10 percent of your take-home pay, if you can. Remember to pay yourself first and don’t wait for what’s left over after you pay your bills. If that’s your strategy, you’ll find it difficult to save anything. You should also be sure to set aside your savings in an interest-bearing account, such as a money market account, or in a tax-deferred account like an individual retirement plan (IRA). If your company offers a 401(k) plan, start contributing as soon as you possibly can, especially if the company matches your contributions. Once you’ve finished the basics, then you can start examining your portfolio and other investment opportunities.

Something else to pay close attention to is your tax strategy. When you receive your annual W-2s, make sure your monthly tax payments are being deducted at the proper level. The trick is to come as close to breaking even as possible on your federal tax returns. You should keep and invest your money throughout the year rather than allow the government to use your hard-earned cash.

There are an almost infinite number of financial topics to consider but the bottom line is getting the education you need to determine what you need to do to establish a positive financial position for 2010. Go to the library and check out books that deal with the financial issues you are most interested in (plus, you’re already saving money by checking the books out of the library rather than buying them). Subscribe to magazines, listen to radio, watch television programs that explain the financial news of the day and surf the Internet. There are so many top-notch areas where you can find the information you need to educate yourself about your financial situation. You might even take a course at the local community college or university. Remember, it doesn’t matter how old or young you are, now is the time to start improving your financial situation.

Again, I’d like to wish you a Happy New Year! You will increase the chances of experiencing a joyous and profitable 2010 if you constructively plan for your financial future.

Happy Investing!