What to consider when choosing a Forex broker?
Posted by Ryanita
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Saturday, December 14, 2013
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forex brokers usa
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Chris
I have $5000 and I'm interested in trading forex. What are the best brokers on the internet?
Also when they say minimum trade size micro unit (1k) does that mean I have to buy at least 1000 units which is for instance for a currency (1.05) $1005?
Also what is the lot size? Is that the range of profit/loss? Like instead of gaining $1 for 1 pip gain $10 if I change the lot size?
Thanks
Answer
Wow... you're on your way to an unbelievable surprise.
There are no good Forex Brokers... there are only Forex Brokers that are not as bad as most.
The first thing you want to consider is where is the corporate headquarters (what country?). Assuming you're from the USA... make sure they are licensed in the USA. Do not, for any reason, deal with a Forex Broker not licensed in your home country.
The next thing is to compare the "spread" charges. All these brokers advertise "no commissions".You'd actually be better off with a commission charge than the way they charge (by the spread). Make sure that the pairs that you'll be trading have comparatively smaller spreads than the competition.
No matter what you see on the web (especially from the brokers)... understand that it will take, on average 3-5 years to be profitable in any type of trading. Forex traders usually destroy their account in days, weeks or months.
The free "classes" taught by the brokers are a joke. They concentrate on the least important aspect of trading, which is Technical Analysis. The two fields of study, significantly more important are;
A. Psychology (yours and the markets).
B. Risk Management.
Read 6-12 books on trading and another 2-3 books on Forex Trading before you open a Forex brokerage account.
Good luck!
Wow... you're on your way to an unbelievable surprise.
There are no good Forex Brokers... there are only Forex Brokers that are not as bad as most.
The first thing you want to consider is where is the corporate headquarters (what country?). Assuming you're from the USA... make sure they are licensed in the USA. Do not, for any reason, deal with a Forex Broker not licensed in your home country.
The next thing is to compare the "spread" charges. All these brokers advertise "no commissions".You'd actually be better off with a commission charge than the way they charge (by the spread). Make sure that the pairs that you'll be trading have comparatively smaller spreads than the competition.
No matter what you see on the web (especially from the brokers)... understand that it will take, on average 3-5 years to be profitable in any type of trading. Forex traders usually destroy their account in days, weeks or months.
The free "classes" taught by the brokers are a joke. They concentrate on the least important aspect of trading, which is Technical Analysis. The two fields of study, significantly more important are;
A. Psychology (yours and the markets).
B. Risk Management.
Read 6-12 books on trading and another 2-3 books on Forex Trading before you open a Forex brokerage account.
Good luck!
What is the best forex broker in the USA? Low spreads, easy funding and withdrawing methods and etc?
Nicolas
Can't seem to find a decent one out there. FSA regulated and has the metatrader 4 platform
Answer
Hotforex is a good broker, they have very low spreads, low deposit, ecn, micro accounts, mt4 but no fsa, they are regulated by FSC
Hotforex is a good broker, they have very low spreads, low deposit, ecn, micro accounts, mt4 but no fsa, they are regulated by FSC
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How does forex work when buying and selling?
Posted by Ryanita
on , under
forex risk calculator
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Gopher
So if i want to buy jpy/aud or anything that does not have us dollars in it how would it work. Would i convert my us dollars into japanese yen when i buy it. Then when i sell it i convert the jpy into aud then i once again convert it into usd. I am really confused can someone help me. When i pay the broker their cut for being the middle man do they take percentage in usd or jpy or british pounds or what.
Answer
It depends which currency your brokerage account is ,
I'm in New Zealand and have a forex account in Australia, so it's balance is displayed in AUD.
When I do a trade on the USD/EUR pair, I'm just playing with the EUR/USD rate - all of the calculations are done in AUD.
I think forex peace army and babypips have the best free training.
You need to read up on money/risk management before you start and having a position size calculator will help when you first start out
Good luck
It depends which currency your brokerage account is ,
I'm in New Zealand and have a forex account in Australia, so it's balance is displayed in AUD.
When I do a trade on the USD/EUR pair, I'm just playing with the EUR/USD rate - all of the calculations are done in AUD.
I think forex peace army and babypips have the best free training.
You need to read up on money/risk management before you start and having a position size calculator will help when you first start out
Good luck
How to pyramid on forex?
Prince
Hi all!
I wonder,how and when to pyramid as soon as I see that trade is profitable.
Is there any kind of indicator,calculator,tutorial,etc which can help me?
Thanks
Answer
What do you mean by Pyramid? You mean adding on to a position or you mean compounding your account to increase it's size.
For adding on, I don't recommend it unless you are confident with the strength of the trend to drop a little more risk in. It's a good idea to lock in profits of your already profitable position with a +ve stop loss as well.
I don't recommend compounding either, at least until you have withdrawn your profits up till the stage where you have taken your initial capital back so all you are left with is pure profits as risk capital. For instance, you deposited $10k, don't compound until you withdraw at least $10k again. My personal habit is to withdraw some or all of the week's profits on Fridays. After all, aren't we trading to make a profit and reap the benefits of those profits by restocking our bank accounts?
What do you mean by Pyramid? You mean adding on to a position or you mean compounding your account to increase it's size.
For adding on, I don't recommend it unless you are confident with the strength of the trend to drop a little more risk in. It's a good idea to lock in profits of your already profitable position with a +ve stop loss as well.
I don't recommend compounding either, at least until you have withdrawn your profits up till the stage where you have taken your initial capital back so all you are left with is pure profits as risk capital. For instance, you deposited $10k, don't compound until you withdraw at least $10k again. My personal habit is to withdraw some or all of the week's profits on Fridays. After all, aren't we trading to make a profit and reap the benefits of those profits by restocking our bank accounts?
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Is it possible to make a living buying and selling stocks and shares?
Posted by Ryanita
on , under
forex live charts
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barry d
I was told about forex and day trading but I think it might be a scam.
Answer
Conservatively, you can average about 12% a year by buying large-capitalization stocks and selling (also called writing) call options to collect a premium. So you can make about $12,000 for each $100,000 in your account. With a $500,000 account, you would make about $60,000 a year. With a larger account, of course, you could make more.
Another way to make consistent profits in stocks in "swing trading," going for small moves of several days to several weeks in stocks or stock options. I use Japanese candlestick charts to swing trade, and have been averaging 8% to 12% a month, using some leverage. Instead of buying stocks, I buy deep-in-the-money options, going both long and short. Doing this, even a small account of $100,000 can make you $8,000 to $12,000 a month, an amount many people would consider a very comfortable living. Get a book on Japanese candlestick trading, paper-trade for a while (just make "pretend" trades, tracking the results in Yahoo Finance) until you become proficient at recognizing and acting on the signals.
Conservatively, you can average about 12% a year by buying large-capitalization stocks and selling (also called writing) call options to collect a premium. So you can make about $12,000 for each $100,000 in your account. With a $500,000 account, you would make about $60,000 a year. With a larger account, of course, you could make more.
Another way to make consistent profits in stocks in "swing trading," going for small moves of several days to several weeks in stocks or stock options. I use Japanese candlestick charts to swing trade, and have been averaging 8% to 12% a month, using some leverage. Instead of buying stocks, I buy deep-in-the-money options, going both long and short. Doing this, even a small account of $100,000 can make you $8,000 to $12,000 a month, an amount many people would consider a very comfortable living. Get a book on Japanese candlestick trading, paper-trade for a while (just make "pretend" trades, tracking the results in Yahoo Finance) until you become proficient at recognizing and acting on the signals.
I am looking for free live forex charts that uses candlestick as a chart option. can anyone help?
bryant w
I have come accross some free forex candlesticks charts but the bars/chart were so small that I could barely see the candlestick bars. I am looking for nice clear candlestick charts for forex. I appreciate the help
Answer
Hi,
www.Oanda.com provide good charting Free of charge. You can sign up for a non expiring demo account. Or you can join Fxcm.com for demo account, but the account expires in a month time. and you can get trading signals from www.forex-signals-4u.com
Hope the above helped.
Hi,
www.Oanda.com provide good charting Free of charge. You can sign up for a non expiring demo account. Or you can join Fxcm.com for demo account, but the account expires in a month time. and you can get trading signals from www.forex-signals-4u.com
Hope the above helped.
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Automated Forex Trading Robot is a Scam?
Posted by Ryanita
on , under
forex 80 system
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comments (0)
jessicabut
I'm a novice forex trader who just started trading forex a week ago. I was wondering if anyone had heard or tried the automated forex trading robot like this one http://forextrading.wellexplained.info/ I'm so much attracted to it and planning to get one and try it myself. I read some reviews on it and all of them were positive.
Have you tried it before? Worth buying? Should I give it a go?
Answer
I've been trading forex for almost 8 years now, I believe in proper Forex education than anything. If you really wanna make profits from Forex, learn it and trade it yourself. Experience makes you a better and successful trader. And no, I've never tried that piece of script that promises so much of gains in a month. But one of my friends did. Yeah, he did make a profit of about 80% in one trade, but he lost almost 90% of his investment in the other 6 trades. Script is still a script, it's written by human based on historical data. More info, refer to http://www.squidoo.com/forex-robot-trading-system-scam/
Therefore, if you really wanna do well trading Forex, learn what Forex is, how Forex works, learn the charts, study the markets, and be brave to trade, remember high risk high return. You should get a proper Forex education like this http://www.squidoo.com/the-forex-kingdom-review/ rather than counting on a trading robot.
Good luck in pursuing your forex riches.
I've been trading forex for almost 8 years now, I believe in proper Forex education than anything. If you really wanna make profits from Forex, learn it and trade it yourself. Experience makes you a better and successful trader. And no, I've never tried that piece of script that promises so much of gains in a month. But one of my friends did. Yeah, he did make a profit of about 80% in one trade, but he lost almost 90% of his investment in the other 6 trades. Script is still a script, it's written by human based on historical data. More info, refer to http://www.squidoo.com/forex-robot-trading-system-scam/
Therefore, if you really wanna do well trading Forex, learn what Forex is, how Forex works, learn the charts, study the markets, and be brave to trade, remember high risk high return. You should get a proper Forex education like this http://www.squidoo.com/the-forex-kingdom-review/ rather than counting on a trading robot.
Good luck in pursuing your forex riches.
What is the best blog about stocks investing ?
sam e
Answer
´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.
If you are investing, you must have already achieved some degree of finalcial success, long term stock investing and FOREX can help you become much richer than you are today.
My experiences as a Nasdaq Market Maker, Head trader of seveal brokerage firms, and currently as a professional trader and private hedge fund manager, I can sugest you that:
We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow. Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that, don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.
For me "All stocks are equally worthless"
I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.
I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.
Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin⦠That´s why so many new traders (and investors) lose money.
Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.
The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.
But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.
It's easy to see why trading the open is the market's prime time for profiting from other online traders.
The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.
Learn to trade as a professional Market Maker ,not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.
There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points in minutes OTHER than during the first hour the stock market is open. That's why I love trading the open so much.
I trade only when I have an edge and that means "only the fisrt hour the market is open".
If you are a beginning trader or investor, you can give yourself an unfair advantage in the market trading this way.
I can continue giving you a lot of advises about how to make money trading, but if you ask me:
"What is the best thing you can do for me or that I can do for myself?
Go to this hiden site and learn the BEST guarded system on making the largest and fastest day trading profits you´ve ever seen...
www.onehourtrading.com
After you review this site you won´t need any other system, strategy, book, software or mentor to tell you what to do,
you will be able to find big profits opportunities evey day, and don´t rely on anybody else.
P.S. Check my last 3 trades, so you can have a better perspective...Check them in any chart softaware or website.
Date: 2/13/2008, Stock: NILE, Gap: $13.57, Action: Bought at $42 Sold at $43.5, Profit: $1500, No. of stocks: 1000, Time: less than 3 minutes.
Date: 2/14/2008, Stock: EQIX, Gap: $7.25, Action: Sold short at $80 Bought at $78, Profit: $2000, No. of stocks: 1000, Time: less than 1 hour.
Date: 2/15/2008, Stock: DRYS, Gap: $3.67, Action: Sold short at $86.5 Bought at $84.5, Profit: $2000, No. of stocks: 1000, Time: less than 1 hour.
TOTAL PROFITS IN 3 DAYS: $5500
What is the best option for you, to invest or daytrade? The answer will depend on your expectations, experience, money, time, but if you are a beginner and you want to put yourself light years ahead of every investor and trader you know and give yourself an unfair advantage in the market get The One Hour Trading System right away!!!
Good luck and good trading,
´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.
If you are investing, you must have already achieved some degree of finalcial success, long term stock investing and FOREX can help you become much richer than you are today.
My experiences as a Nasdaq Market Maker, Head trader of seveal brokerage firms, and currently as a professional trader and private hedge fund manager, I can sugest you that:
We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow. Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that, don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.
For me "All stocks are equally worthless"
I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.
I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.
Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin⦠That´s why so many new traders (and investors) lose money.
Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.
The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.
But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.
It's easy to see why trading the open is the market's prime time for profiting from other online traders.
The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.
Learn to trade as a professional Market Maker ,not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.
There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points in minutes OTHER than during the first hour the stock market is open. That's why I love trading the open so much.
I trade only when I have an edge and that means "only the fisrt hour the market is open".
If you are a beginning trader or investor, you can give yourself an unfair advantage in the market trading this way.
I can continue giving you a lot of advises about how to make money trading, but if you ask me:
"What is the best thing you can do for me or that I can do for myself?
Go to this hiden site and learn the BEST guarded system on making the largest and fastest day trading profits you´ve ever seen...
www.onehourtrading.com
After you review this site you won´t need any other system, strategy, book, software or mentor to tell you what to do,
you will be able to find big profits opportunities evey day, and don´t rely on anybody else.
P.S. Check my last 3 trades, so you can have a better perspective...Check them in any chart softaware or website.
Date: 2/13/2008, Stock: NILE, Gap: $13.57, Action: Bought at $42 Sold at $43.5, Profit: $1500, No. of stocks: 1000, Time: less than 3 minutes.
Date: 2/14/2008, Stock: EQIX, Gap: $7.25, Action: Sold short at $80 Bought at $78, Profit: $2000, No. of stocks: 1000, Time: less than 1 hour.
Date: 2/15/2008, Stock: DRYS, Gap: $3.67, Action: Sold short at $86.5 Bought at $84.5, Profit: $2000, No. of stocks: 1000, Time: less than 1 hour.
TOTAL PROFITS IN 3 DAYS: $5500
What is the best option for you, to invest or daytrade? The answer will depend on your expectations, experience, money, time, but if you are a beginner and you want to put yourself light years ahead of every investor and trader you know and give yourself an unfair advantage in the market get The One Hour Trading System right away!!!
Good luck and good trading,
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What Is The Best Forex Trading Strategy?
Posted by Ryanita
on , under
forex trading strategies
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comments (0)
forex trading strategies
image
Hannah
I am in complete information overload and looking to find recommendations from experienced traders.
Please do answer, I am looking forward to some pro Forex traders. If you are trading Forex for a living it would be awesome to here your advice. Please help and give good info.
Answer
I can really relate to you as this reminds me of the time when
I started Forex Trading. See, Forex Trading is not all it is cracked up
to be.
All the brokers are advertising this quick money making skim,
open an account with $50 and make big money and other stuff that's
not true.
My advice is to find a good Forex forum or group that teaches
Forex newbies. I know a lot of people that are Forex indicators
worshipers, but I don't pay much attention to all that hype.
Most of the times indicators are just used by the broker as a
training tool or just to fill up their Forex training section.
In reality most of the indicators are lugging and are not
timely on the market.
Your Forex broker loves them as the indicators make you
pretty predictable. For example let's say the Forex broker is
propagating a indicator. This indicator is calling for buying
or selling when such and such lines are crossing. The indicator
is also calling shorts when the lines are crossing backwards.
This makes you very predictable and helps the broker to
execute in the opposite direction.
By the way it is not a secret, that the broker sits on the opposite
side of your trade, especially if the broker is not a ECN broker
and is not a price maker.
Forex Market is huge, but for a retail Forex Trader like yourself,
the market is only as big as your broker.
One more thing to be very careful is not to trade the news.
A lot of those Scam Forex Brokers are widening the spread
during news times. You will be surprised, but some of them
are going as far as 90pips spread. See, the broker looses
control during the news trading due to very high volumes
and the only way to control is to take you out of the game
with a wide spread.
I have even seen my stops taken before my entry, now that's
a roller coaster Forex.
The best Forex trading strategy for me is a Price Action Forex
strategy. Forex Support and Resistance strategy, Fibonacci Forex
strategy, Big Numbers Areas Forex Strategy.
For a Forex newbie, since I get asked a lot, I have found this
program to be pretty effective.
In any case take all the advice you can and good luck with your
Forex trading.
I can really relate to you as this reminds me of the time when
I started Forex Trading. See, Forex Trading is not all it is cracked up
to be.
All the brokers are advertising this quick money making skim,
open an account with $50 and make big money and other stuff that's
not true.
My advice is to find a good Forex forum or group that teaches
Forex newbies. I know a lot of people that are Forex indicators
worshipers, but I don't pay much attention to all that hype.
Most of the times indicators are just used by the broker as a
training tool or just to fill up their Forex training section.
In reality most of the indicators are lugging and are not
timely on the market.
Your Forex broker loves them as the indicators make you
pretty predictable. For example let's say the Forex broker is
propagating a indicator. This indicator is calling for buying
or selling when such and such lines are crossing. The indicator
is also calling shorts when the lines are crossing backwards.
This makes you very predictable and helps the broker to
execute in the opposite direction.
By the way it is not a secret, that the broker sits on the opposite
side of your trade, especially if the broker is not a ECN broker
and is not a price maker.
Forex Market is huge, but for a retail Forex Trader like yourself,
the market is only as big as your broker.
One more thing to be very careful is not to trade the news.
A lot of those Scam Forex Brokers are widening the spread
during news times. You will be surprised, but some of them
are going as far as 90pips spread. See, the broker looses
control during the news trading due to very high volumes
and the only way to control is to take you out of the game
with a wide spread.
I have even seen my stops taken before my entry, now that's
a roller coaster Forex.
The best Forex trading strategy for me is a Price Action Forex
strategy. Forex Support and Resistance strategy, Fibonacci Forex
strategy, Big Numbers Areas Forex Strategy.
For a Forex newbie, since I get asked a lot, I have found this
program to be pretty effective.
In any case take all the advice you can and good luck with your
Forex trading.
Can anyone help me program a forex trading algorithmic strategy for use in ACTFX ?
The Legend
I need someone to help me program an auto trading strategy for use according to ACTFX programing, consisting of the hammer, hangman candlestick patterns, they have one on the site but I want one which open a buy/sell position only after a confirming candle next to the hammer/hangman pattern.
Or if you know how I can edit the existing strategy , that would help too
Thank you very much in advance
Answer
there are many kinds of trading features in forex you better have a search on trading the source which is given below if you are well determined you can figure it out whats gonna be are you up to the challange!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
there are many kinds of trading features in forex you better have a search on trading the source which is given below if you are well determined you can figure it out whats gonna be are you up to the challange!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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What is a good website to learn the basics of Forex trading?
Posted by Ryanita
on , under
forex 100
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comments (0)
j boy
I just attended a seminar on Forex trading the other day. I've downloaded a demo version of AVA FX and Im battling to get the most out of it. Is there a more simpler version out there from another company that will also run on my Mac because AVA FX only runs on windows.
Answer
Try with this Forex trading simulator
http://www.bullbearings.co.uk/fx.trading.guide.php
It's online and you can register for free, they give you a credit of £100,000 to place your trades. This site also has tutorials and advice. I started using it for stock trading but now I am hooked up with forex
Try with this Forex trading simulator
http://www.bullbearings.co.uk/fx.trading.guide.php
It's online and you can register for free, they give you a credit of £100,000 to place your trades. This site also has tutorials and advice. I started using it for stock trading but now I am hooked up with forex
How much money do I need to get into Forex Currency Trading?
BarbieDoll
How much money do I need to get into Forex Currency Trading??? Like whats the minimum and how much money could expect to make if I do well?
Answer
Hello,
My recommendation is to start at least from 100-200$. Ff you will have less money on your account you need to wait a year to double it.
Your income can depend from your style of trading.
If you will trade manually you can make 100 pips a month. But, for example, if you will use at least semi-automated Forex system that will trade instead of you and can make up to 800 pips it's completely another situation. When I was started Forex I made the right choice and start automated trading with Forexeasystems.
Hope, you will succeed on Forex.
Best wishes!
Hello,
My recommendation is to start at least from 100-200$. Ff you will have less money on your account you need to wait a year to double it.
Your income can depend from your style of trading.
If you will trade manually you can make 100 pips a month. But, for example, if you will use at least semi-automated Forex system that will trade instead of you and can make up to 800 pips it's completely another situation. When I was started Forex I made the right choice and start automated trading with Forexeasystems.
Hope, you will succeed on Forex.
Best wishes!
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How do you declare your forex profits/losses on your tax returns?
Posted by Ryanita
on , under
forex 6781
|
comments (0)
Jason B
I imagine it is different than stock gains/loses on a Schedule D.
Answer
Jason B
You report your profits/losses on IRS form 6781 and transferred to Schedule D
60% are considered long term
40% are considered short term
Jason B
You report your profits/losses on IRS form 6781 and transferred to Schedule D
60% are considered long term
40% are considered short term
How do I pay income tax on ForEx earnings?
John S
I am doing normal daily trading of EUR/USD, trades lasting a few hours on average. I am not sure if this is considered futures or securities and I therefore don't know how to pay taxes on it.
Answer
NOTE: "Forex Taxes" are applies to U.S. traders only. Foreign investors that are not residents or citizens of the United States of America do not have to pay any taxes on foreign exchange profits!
Forex Trading Taxation - Definition and Overview:
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...
More and more investors from all over the world are accessing the largest financial markets online through their personal computers. As demand surges for foreign exchange trading, more and more U.S. Traders have to deal with taxation issues at the end of the year.
Forex: Taxed as Futures or Cash?
Currency traders involved in the forex spot (cash) market, can choose to be taxed under the same tax rules as regular commodities [IRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions). IRC 988 applies to cash forex unless the trader elects to opt out.
The Advantage of Section 1256 for Currency Traders Under Section 1256, forex traders can have a significant advantage over stock traders. By reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles), forex traders are allowed to split their capital gains on Schedule D using a 60% / 40% split. This means that 60% of the capital gains are taxed at the lower, long-term capital gains rate (currently 15%) and the remaining 40% at the ordinary or short-term capital gains rate, which depends on the tax bracket the trader falls under (as high as 35%). This results in an average rate of 23%, which is 12% less than the regular (short-term) rate.
If cash forex is subject to the Section 988 rules, how can a trader elect the more beneficial Section 1256 split? Please read on to find out more.
To Opt Out or Not to Opt Out of Section 988 !!
Companies that profit from the fluctuation in foreign exchange rates as part of their normal course of business, fall under Section 988. This means their gains and losses from foreign exchange (such as buying and selling of foreign goods) are treated as interest income or expense and get taxed accordingly. Consequently, they do not receive the beneficial 60/40 split.
Since forex traders are also exposed to daily exchange rate fluctuations, their trading activity falls under the provisions of Section 988 too - but don't worry. The IRS wants to be nice to you (so far). Because these daily fluctuations can be considered part of a currency trader's assets in the normal course of his business, the IRS gives the trader the option of rejecting (opting out) of Section 988 and electing that the gains be taxed under the favorable 60/40 split of Section 1256.
What do you have to do to opt out of Section 988? Even though you don't have to file anything with the IRS to opt out, you are required to do so "internally" before starting to trade; i.e., you must keep records in your own books about the fact that you are opting out of Section 988.
Many currency traders bend the rules by waiting after the year is over to see if they have any gains from their trading activities. If they do, they claim that they elected out of IRC 988 to enjoy the beneficial Section 1256 treatment. On the other hand, if the sum of the trades from cash forex is not positive, they stick with the traditional Section 988. Since (under the current tax law) it becomes very difficult to disprove whether the trader made the election at the beginning or at the end of the year, IRS has not yet begun to crack down on this activity.
What does a Forex Trader do When Tax Time Comes?
Forex traders should receive 1099 forms from their US-based broker at the end of the year like stock and futures traders do. No matter in what country your forex broker is based or what tax-related reports they provide, you could pull up reports online from your accounts and seek the help of a tax professional. No matter what you decide to do, don't fall into the temptation of lumping your trades with your section 1256 activity (if any). Forex transactions need to be separated into Section 988 reporting.
Given the fact that the forex market is one of the fastest-growing financial markets around, it might eventually come under closer IRS regulation. In the meantime, traders continue to enjoy tax advantages by trading foreign currencies.
...To find out More how You can Become a Profitable Trader on a Consistent Basis, Please Visit Here: http://www.urlpire.com/?MALFY - You Will Learn Valuable Ways and Tips to help You Make Money Trading the Forex Market !!
NOTE: "Forex Taxes" are applies to U.S. traders only. Foreign investors that are not residents or citizens of the United States of America do not have to pay any taxes on foreign exchange profits!
Forex Trading Taxation - Definition and Overview:
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...
More and more investors from all over the world are accessing the largest financial markets online through their personal computers. As demand surges for foreign exchange trading, more and more U.S. Traders have to deal with taxation issues at the end of the year.
Forex: Taxed as Futures or Cash?
Currency traders involved in the forex spot (cash) market, can choose to be taxed under the same tax rules as regular commodities [IRC (Internal Revenue Code) Section 1256 contracts] or under the special rules of IRC Section 988 (Treatment of Certain Foreign Currency Transactions). IRC 988 applies to cash forex unless the trader elects to opt out.
The Advantage of Section 1256 for Currency Traders Under Section 1256, forex traders can have a significant advantage over stock traders. By reporting capital gains on IRS Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles), forex traders are allowed to split their capital gains on Schedule D using a 60% / 40% split. This means that 60% of the capital gains are taxed at the lower, long-term capital gains rate (currently 15%) and the remaining 40% at the ordinary or short-term capital gains rate, which depends on the tax bracket the trader falls under (as high as 35%). This results in an average rate of 23%, which is 12% less than the regular (short-term) rate.
If cash forex is subject to the Section 988 rules, how can a trader elect the more beneficial Section 1256 split? Please read on to find out more.
To Opt Out or Not to Opt Out of Section 988 !!
Companies that profit from the fluctuation in foreign exchange rates as part of their normal course of business, fall under Section 988. This means their gains and losses from foreign exchange (such as buying and selling of foreign goods) are treated as interest income or expense and get taxed accordingly. Consequently, they do not receive the beneficial 60/40 split.
Since forex traders are also exposed to daily exchange rate fluctuations, their trading activity falls under the provisions of Section 988 too - but don't worry. The IRS wants to be nice to you (so far). Because these daily fluctuations can be considered part of a currency trader's assets in the normal course of his business, the IRS gives the trader the option of rejecting (opting out) of Section 988 and electing that the gains be taxed under the favorable 60/40 split of Section 1256.
What do you have to do to opt out of Section 988? Even though you don't have to file anything with the IRS to opt out, you are required to do so "internally" before starting to trade; i.e., you must keep records in your own books about the fact that you are opting out of Section 988.
Many currency traders bend the rules by waiting after the year is over to see if they have any gains from their trading activities. If they do, they claim that they elected out of IRC 988 to enjoy the beneficial Section 1256 treatment. On the other hand, if the sum of the trades from cash forex is not positive, they stick with the traditional Section 988. Since (under the current tax law) it becomes very difficult to disprove whether the trader made the election at the beginning or at the end of the year, IRS has not yet begun to crack down on this activity.
What does a Forex Trader do When Tax Time Comes?
Forex traders should receive 1099 forms from their US-based broker at the end of the year like stock and futures traders do. No matter in what country your forex broker is based or what tax-related reports they provide, you could pull up reports online from your accounts and seek the help of a tax professional. No matter what you decide to do, don't fall into the temptation of lumping your trades with your section 1256 activity (if any). Forex transactions need to be separated into Section 988 reporting.
Given the fact that the forex market is one of the fastest-growing financial markets around, it might eventually come under closer IRS regulation. In the meantime, traders continue to enjoy tax advantages by trading foreign currencies.
...To find out More how You can Become a Profitable Trader on a Consistent Basis, Please Visit Here: http://www.urlpire.com/?MALFY - You Will Learn Valuable Ways and Tips to help You Make Money Trading the Forex Market !!
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How can i make money on internet without having to spend any?
Posted by Ryanita
on , under
forex affiliate programs
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comments (0)
forex affiliate programs
image
Jeffrey
I am a stay at home dad who desperately needs an income. I've been looking on the internet for something I can do from home but they always end up being scams. I've been looking into affiliate,blogging,advertising & even payper click programs. I just want to provide for my FAMILY & not get ripped off. If anyone can point me in the right direction I'd appreciate it. Thank you in advance.
Answer
There is no quick fix I am afraid. I have 2 website and very slow earning, and a lot of boring and tedious site optimizing. (good for a trickle income though) Don't get hooked on forex. You need a lot of money to put in the pot in the first place. You are probably best thinking about selling really. I.e. look into finding a good wholesale company. It would take good research though to make sure that you are selling something that people are raving about or want. Last Christmas - I was short of cash and bought wholesale boxer shorts from china. I sold them on ebay and made a quick and substantial profit.
Hope you find something suitable soon. I am searching again. I will let you know if I come across a winner.
Regards,
Ann.
There is no quick fix I am afraid. I have 2 website and very slow earning, and a lot of boring and tedious site optimizing. (good for a trickle income though) Don't get hooked on forex. You need a lot of money to put in the pot in the first place. You are probably best thinking about selling really. I.e. look into finding a good wholesale company. It would take good research though to make sure that you are selling something that people are raving about or want. Last Christmas - I was short of cash and bought wholesale boxer shorts from china. I sold them on ebay and made a quick and substantial profit.
Hope you find something suitable soon. I am searching again. I will let you know if I come across a winner.
Regards,
Ann.
Is there a program out there for making legit money online?
Lucky
I really need to supplement my income to make my life better and or not have to worry about the next meal or where, or when it's coming. I want something completely legitimate, No BS! I just want to know if anyone is making legit money online, or is all of it a giant hoax. I don't want to have to go on social services if I don't have to.
Answer
Yes there are people making money online. It depends on how much you have to start with. The easiest way is getting paid for doing surveys. You pretty much get paid within 2 weeks of starting and it doesn't cost you a cent to get started. A friend of mine does this and earns around $50 - $100 a week.
To find out more do a google search for Paid surveys
The next thing is affiliate marketing. If there is something you are passionate about or don't the time or money to spend on your own website then this is the next best thing. You basically resell already made products or services on the web. The downside is that it can take a while until you start seeing the money come in and it can cost a little bit to get started.
A good place to start is www.clickbank.com
Another idea is buying and reselling goods on eBay. First find a product that is in relative demand and purchase it in bulk. Then, resell it online. I have a few friends that do this and make quite a nice dollar from it. The downside is you need some capital to get started.
Another idea is creating your own website and put ads on it. Allot of people do make money this way. Find out what you are passionate about and design a site around it. The downside is you will need to either develop it on your own or pay some one to do it for you.
The last idea I know is Stock and Forex trading. I know of people that make a living doing this online. With Forex you don't need much money to start, possibly around $1000 and can make some nice returns. The downside is that it is very risky if you don't know what you are doing. You will need to study and practice online for at least 6 months or until you are confident before risking any money. You can also lose it all if you make the wrong choices. Its all about the education.
The best place to start learning for FREE is www.babypips.com
There are allot of scams out there so be careful. The information and links here are from ideas and places that have made money for myself or people I know. I have sold on eBay as well as invested in Forex and made money.
Yes there are people making money online. It depends on how much you have to start with. The easiest way is getting paid for doing surveys. You pretty much get paid within 2 weeks of starting and it doesn't cost you a cent to get started. A friend of mine does this and earns around $50 - $100 a week.
To find out more do a google search for Paid surveys
The next thing is affiliate marketing. If there is something you are passionate about or don't the time or money to spend on your own website then this is the next best thing. You basically resell already made products or services on the web. The downside is that it can take a while until you start seeing the money come in and it can cost a little bit to get started.
A good place to start is www.clickbank.com
Another idea is buying and reselling goods on eBay. First find a product that is in relative demand and purchase it in bulk. Then, resell it online. I have a few friends that do this and make quite a nice dollar from it. The downside is you need some capital to get started.
Another idea is creating your own website and put ads on it. Allot of people do make money this way. Find out what you are passionate about and design a site around it. The downside is you will need to either develop it on your own or pay some one to do it for you.
The last idea I know is Stock and Forex trading. I know of people that make a living doing this online. With Forex you don't need much money to start, possibly around $1000 and can make some nice returns. The downside is that it is very risky if you don't know what you are doing. You will need to study and practice online for at least 6 months or until you are confident before risking any money. You can also lose it all if you make the wrong choices. Its all about the education.
The best place to start learning for FREE is www.babypips.com
There are allot of scams out there so be careful. The information and links here are from ideas and places that have made money for myself or people I know. I have sold on eBay as well as invested in Forex and made money.
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Why cant we trade with Robots also called EA and generate good profits from the International Currency Markets?
Posted by Ryanita
on
Friday, December 13, 2013
, under
forex capital markets
|
comments (0)
Forex Trading Robots are safe, if you select the best one. My friend is using one automated trader robot software for the last 8 months, Never the monthly profit returns went less than 20%/pm
Answer
Your friend claims to have over 4x his initial starting capital after 8 months? I don't believe that and neither should you.
Forex Robots are scams. The only ones making money are the robot sellers.
Your friend claims to have over 4x his initial starting capital after 8 months? I don't believe that and neither should you.
Forex Robots are scams. The only ones making money are the robot sellers.
What is the tax rate for a forex market?
jaccchen23
What is the tax rate for a forex market?
About a year ago, I invested couple thousands of dollars in forex market. I have more lose than gain. Overall, I've gained around $7000.00 (my loss is higher than this value). My question is what would the tax rate for this capital gain be for this kind of situation. My regular income is less than $20,0000
Answer
Did you keep records that state you expected to be taxed under IRC 1256 (capital gains rules) rather than IRC 988 (ordinary interest income)?
If yes, then when you receive your 1099 at the end of the year you will get a 60/40 split of activity onto your schedule D. 40% is treated as short term; 60% as long term. Long term gains would get a better tax rate than short term gains. (If for some reason you don't get the 1099, you must still report the income.)
Did you keep records that state you expected to be taxed under IRC 1256 (capital gains rules) rather than IRC 988 (ordinary interest income)?
If yes, then when you receive your 1099 at the end of the year you will get a 60/40 split of activity onto your schedule D. 40% is treated as short term; 60% as long term. Long term gains would get a better tax rate than short term gains. (If for some reason you don't get the 1099, you must still report the income.)
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What is a typical day for a hedge fund manager?
Posted by Ryanita
on , under
forex hedging strategy
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comments (0)
Carli M
Hi,
I'm 13 and would like to be a hedge fund manager when I grow up. I am doing a reasearch paper on it for school and I was wondering what a typical day was like, or a typical week.
Thanks!
Answer
Get up at 4 am to check the European markets open and Asian markets close; read the Wall Street Journal; study your positions. Get to the office early (between 6 - 7:30) to run numbers, check commentary on Asian markets close, monitor European markets, and early trading data. Much of the time is spent on running models, verifying data, watching markets, doing research on various countries and their markets, stocks, forex, private placements, industry data, political events affecting the markets, assessing various types of risks, including sovereign risk. Meet with your contacts & sources in various industries. Supervise staff (if you make it into management). Develop new strategies for investing. Monitor your fund's participants - their investments and withdrawals. Write reports; meet with writers who do your prospectus, reports, collateral materials, communications with investors in your fund.
These are a few of the things you'll be involved in. After the markets close and you assess the day's trading and events, you can have dinner with your spouse, put the kid to bed, and get back on the 'puter to check the Asian markets openings and events.
Get up at 4 am to check the European markets open and Asian markets close; read the Wall Street Journal; study your positions. Get to the office early (between 6 - 7:30) to run numbers, check commentary on Asian markets close, monitor European markets, and early trading data. Much of the time is spent on running models, verifying data, watching markets, doing research on various countries and their markets, stocks, forex, private placements, industry data, political events affecting the markets, assessing various types of risks, including sovereign risk. Meet with your contacts & sources in various industries. Supervise staff (if you make it into management). Develop new strategies for investing. Monitor your fund's participants - their investments and withdrawals. Write reports; meet with writers who do your prospectus, reports, collateral materials, communications with investors in your fund.
These are a few of the things you'll be involved in. After the markets close and you assess the day's trading and events, you can have dinner with your spouse, put the kid to bed, and get back on the 'puter to check the Asian markets openings and events.
Why is the USD taking a beating in the Forex market?
ej105
It has been losing ground to the Japanese Yen, Euro, and the British Sterling. What's the deal? When will this end? This is seriously screwing up my investment strategies.
Answer
The USD dollar is having problems for a couple of reasons. First, there is concern over the status of the US economy in general. We have a war going on that continues to ring up a large bill that will have to be paid by the US taxpayers sooner or later. We have a gazillion and a half baby boomers moving into their "golden years" that is predicted to put massive strain on already questionable social security and healthcare resources. And we have an consumer base that was heavily leaning on housing appreciation as a stimulus for the economy.
Now on top of that challenging set of circumstances we have an international community discussing the replacement of the USD as the primary trading currency in the foreign exchange marketplace. Remember all countries currently have to convert to USD to buy and sell oil and other commodities. What if this were to be slowly replaced with the Euro? or a new Middle Eastern currency like an Oily or some such? or what about the Yuan, rumor has it these guys are packing some serious weight these days.
Couple all this with a US political machine which is more concerned with "he said.....she said....partisan politics" as opposed to focusing on developing a sound economic foundation upon which our country can grow and self sustain......and you then have the most troubling situation for any Forex currency.....uncertainty!
That being said the US still has a lot going for us. The USD is not going to implode over night (at least I hope not). I have most of my clients currently positioned in long term hedging strategies that will perform nicely whether the USD goes up or down.
May all your guesses be good ones.
Paul
The USD dollar is having problems for a couple of reasons. First, there is concern over the status of the US economy in general. We have a war going on that continues to ring up a large bill that will have to be paid by the US taxpayers sooner or later. We have a gazillion and a half baby boomers moving into their "golden years" that is predicted to put massive strain on already questionable social security and healthcare resources. And we have an consumer base that was heavily leaning on housing appreciation as a stimulus for the economy.
Now on top of that challenging set of circumstances we have an international community discussing the replacement of the USD as the primary trading currency in the foreign exchange marketplace. Remember all countries currently have to convert to USD to buy and sell oil and other commodities. What if this were to be slowly replaced with the Euro? or a new Middle Eastern currency like an Oily or some such? or what about the Yuan, rumor has it these guys are packing some serious weight these days.
Couple all this with a US political machine which is more concerned with "he said.....she said....partisan politics" as opposed to focusing on developing a sound economic foundation upon which our country can grow and self sustain......and you then have the most troubling situation for any Forex currency.....uncertainty!
That being said the US still has a lot going for us. The USD is not going to implode over night (at least I hope not). I have most of my clients currently positioned in long term hedging strategies that will perform nicely whether the USD goes up or down.
May all your guesses be good ones.
Paul
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What to consider when choosing a Forex broker?
Posted by Ryanita
on , under
forex 10 pips a day
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comments (0)
Chris
I have $5000 and I'm interested in trading forex. What are the best brokers on the internet?
Also when they say minimum trade size micro unit (1k) does that mean I have to buy at least 1000 units which is for instance for a currency (1.05) $1005?
Also what is the lot size? Is that the range of profit/loss? Like instead of gaining $1 for 1 pip gain $10 if I change the lot size?
Thanks
Answer
Wow... you're on your way to an unbelievable surprise.
There are no good Forex Brokers... there are only Forex Brokers that are not as bad as most.
The first thing you want to consider is where is the corporate headquarters (what country?). Assuming you're from the USA... make sure they are licensed in the USA. Do not, for any reason, deal with a Forex Broker not licensed in your home country.
The next thing is to compare the "spread" charges. All these brokers advertise "no commissions".You'd actually be better off with a commission charge than the way they charge (by the spread). Make sure that the pairs that you'll be trading have comparatively smaller spreads than the competition.
No matter what you see on the web (especially from the brokers)... understand that it will take, on average 3-5 years to be profitable in any type of trading. Forex traders usually destroy their account in days, weeks or months.
The free "classes" taught by the brokers are a joke. They concentrate on the least important aspect of trading, which is Technical Analysis. The two fields of study, significantly more important are;
A. Psychology (yours and the markets).
B. Risk Management.
Read 6-12 books on trading and another 2-3 books on Forex Trading before you open a Forex brokerage account.
Good luck!
Wow... you're on your way to an unbelievable surprise.
There are no good Forex Brokers... there are only Forex Brokers that are not as bad as most.
The first thing you want to consider is where is the corporate headquarters (what country?). Assuming you're from the USA... make sure they are licensed in the USA. Do not, for any reason, deal with a Forex Broker not licensed in your home country.
The next thing is to compare the "spread" charges. All these brokers advertise "no commissions".You'd actually be better off with a commission charge than the way they charge (by the spread). Make sure that the pairs that you'll be trading have comparatively smaller spreads than the competition.
No matter what you see on the web (especially from the brokers)... understand that it will take, on average 3-5 years to be profitable in any type of trading. Forex traders usually destroy their account in days, weeks or months.
The free "classes" taught by the brokers are a joke. They concentrate on the least important aspect of trading, which is Technical Analysis. The two fields of study, significantly more important are;
A. Psychology (yours and the markets).
B. Risk Management.
Read 6-12 books on trading and another 2-3 books on Forex Trading before you open a Forex brokerage account.
Good luck!
How much leverage are you comfortable trading in FOREX?
nauticalps
Does anyone have any suggestions on a leverage limit?
Many FOREX brokers allow up to 200:1 leverage. My trading strategy is to take just very small gains (3 or 4 pips at a time) and set the stop losses way out there just to avoid a total wipeout. I never trade on Fridays either and of course close out before the market closes.
Because of the giant stop losses, I am only comfortable with around 20:1 leverage or maybe 30:1.
In other words, with a $500 margin account balance, I would only consider buying 0.1 lots of EURUSD (10,000) at a time; 0.2 lots with $700; 0.3 lots with $1100 and so on...
Does anyone out there use the same strategy as me and feel comfortable with higher leverage like 40:1, 50:1 or even higher?
Answer
As you indicated, it is not just your leverage that you need to take into account...it is also your margin level that is important.
When I am drawn back to my technical analysis days I usually use a leverage of 40:1 unless I have a high probability setup occurring (based on pivot points and fibs). In that case I might go as high as 100:1.
Currently the majority of my Forex activity is based on conservative hedge trades (usually hedging the EUR/USD and USD/CHF). With my hedge trades I use a leverage of 400:1 and a margin of 10%. Hedging is awesome because the position can make profit regardless if the market goes up or down. I also get paid a daily interest payment, 7 days a week.
I have an analysis of the daily performance of 5 different hedge strategies over the past 500 days if you would like to see it. And these were all at 400:1 leverage and never anywhere near a margin call.
Paul
As you indicated, it is not just your leverage that you need to take into account...it is also your margin level that is important.
When I am drawn back to my technical analysis days I usually use a leverage of 40:1 unless I have a high probability setup occurring (based on pivot points and fibs). In that case I might go as high as 100:1.
Currently the majority of my Forex activity is based on conservative hedge trades (usually hedging the EUR/USD and USD/CHF). With my hedge trades I use a leverage of 400:1 and a margin of 10%. Hedging is awesome because the position can make profit regardless if the market goes up or down. I also get paid a daily interest payment, 7 days a week.
I have an analysis of the daily performance of 5 different hedge strategies over the past 500 days if you would like to see it. And these were all at 400:1 leverage and never anywhere near a margin call.
Paul
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Is there a group of people who can trade the forex markets without a spread, or at least MUCH less than I pay?
Posted by Ryanita
on
Thursday, December 12, 2013
, under
forex 4 week rule
|
comments (0)
Sandor S
If trillions of dollars gets traded back and forth on a daily basis, it doesn't make any sense that everyone has to pay a spread of 0.03%, because that is a lot of money that is disappearing from everyone's pockets, a billion dollars a day, and even if they did all have to pay it, it has to be going to someone. Someone who is able to trade for free because he is the one who keeps the profits of the difference between bid and ask. Who is that someone?
I ask because I have created an adaptive trading method that only works with horribly low spread. Too low for me to use, but it must be horrifically valuable to SOMEone out there. And when I say it is adaptive, I mean that there is no a priori strategy, it looks at the last 63 days every 2 weeks and decides on the trading rules it will apply over the next two weeks from that alone, so it isn't adapted to any future data; it's not cheating. Operating on the USD/JPY from July 1, 2007 to Feb 13, 2009, these are its results from one run (since it contains random variables, if you ran it again on the exact same data you'd get different numbers, but the same SORTS of results):
Commission=0.02:
Total gain=1.9586666009107498e-001
Total commissions=4.3467080397738096e+000
Commission=0.01:
Total gain=1.4452129891615770e+000
Total commissions=2.5255991687861270e+000
Commission=0.0079:
Total gain=6.0134531854447415e+000
Total commissions=1.3535088531109761e+001
Commission=0.005:
Total gain=8.3681903017587498e+007
Total commissions=2.2229280168087495e+008
Commission=0.0029:
Total gain=5.3964686183550566e+012
Total commissions=6.6395560659541475e+012
Commission=0.0019:
Total gain=3.7134772078865466e+017
Total commissions=2.0657410633892125e+017
Commission=0:
Total gain=4.7437229016568531e+049
Total commissions=0
Note that 5.5e+026 is the computer's way of expressing scientific notation, and that example would be 5.5 times 10 to the 26th power.
As you can see, it works astronomically well with as low a spread as possible, but nothing that is given realistically by any brokers to small fish like me.
--------------------
The answer I will not accept:
"there would be no one willing to facilitate trades if they didn't get to take a cut"
Obviously. I'm asking if there's anyone who takes a smaller cut. Or maybe a cut that doesn't go up with trade size - after all, buy stocks with a stock broker, and it's usually 5 or 10 dollars per TRADE. But it doesn't matter what the trade size is. But with a spread on the forex market, with double the trade size, it's double the commission. And like I said, whoever IS pocketing the difference, surely HE must be able to trade without a spread since he's the one who pockets the difference! Certainly this would be worth something to THAT person. It is fundamentally impossible for everyone to lose that money when they trade because it GOES somewhere, and it certainly doesn't COST that much to keep the markets running. It doesn't cost anyone anything for me to enter in an electronic order to trade 300 thousand dollars for 30 million yen and for it all to be carried out by computers but I lose about 100 dollars each round trip in the act of doing so. Maybe at the very least there's some group of people who pay, say, a million dollars a year for however much trading they want, in lieu of spreads. This trading method would make a lot more than that million dollars.
Bill Q - of course if as you say, it's not being collected by one single group but by multitudes of middlemen, that could be a problem. But the thing is, it doesn't really need to be ZERO - it would need to be about a sixth of what the best brokers I can find charge to work reasonably well - and as you can see from the list above, the less percentage they charge, the more actual commissions are actually collected as well so it would be in their best interests to consider it.
The thing is, that if they're offering .03% per trade, that means they're happy with a profit of a mere 3 dollars for one USD/JPY lot (10000 USD against however many JPY that is equivalent to). Or even smaller scale, they're willing to settle for a dollar or so with one MXN/JPY lot (mexican peso). Yet they insist on 3000 dollars of profit for me to trade 1000 lots. No middleground at all! If they'd only settle for a mere 300, we could all make SO much money! But WHO would I talk to about possibly doing this?
Answer
The people who are "pocketing the spread" are not pocketing the whole spread. They have to pay for the computers, their offices, their staffs, etc. They only pocket what's left over after that. Certainly if you are making big trades, they should charge you a lower spread, but they still have to charge you some spread.
The people who are "pocketing the spread" are not pocketing the whole spread. They have to pay for the computers, their offices, their staffs, etc. They only pocket what's left over after that. Certainly if you are making big trades, they should charge you a lower spread, but they still have to charge you some spread.
What is a reasonable profit from forex trading?
Paul
I've had a forex account for many years but never really done anything but study the charts and patterns. I am also interested in the way news moves things and even culture moves things. My job is the study psychology and human influence on other humans. Anyway, I lost my job 4 months ago so I decided I'd spend some time trying out what I know about people and patterns with this account. I just started with the $100 I had left in the account to keep it open. Over the past 4 months I made that into $1955. I've tracked everything and there are no "big days" either way. Although not exactly, it looks like a pretty steady 3%-4%/per day growth. Is this typical? If so, why isn't everyone doing this LOL? At 4%/day $100 becomes $1 mill in a year. I assume there is a volume or "reverse economy of scale" rule that falls into place at some point. Has anyone had experience with this?
Answer
Sure, but what should be obvious on the charts in front of you is that there is rarely an average day. Prices can drift sideways for hours and then suddenly rip in either direction.
In my opinion, psychologists make far better traders than do economists so you are on the right track there but the idea that you can extrapolate 3 to 4 percent forever into the future seems unlikely, as you may need to withdraw some profits from time to time.
Exponential growth would eventually cause you to make a 20 to 1 leveraged trade with a substantial amount of money that could easily be lost. It is easy to be right on the market but wrong on the trade when using high leverage.
Turning $100 into $1955 over 4 months is commendable but I am sure you know that most professional people would want to earn at least $4,000 to $10,000 per month and have a lot of that go into a regular back up savings to cover the inevitable bad trade, slow week or in my case MF Global steals your money.
What would your account look like now if you had started with $10,000? Would you now actually have $195,550.00?
Sure, but what should be obvious on the charts in front of you is that there is rarely an average day. Prices can drift sideways for hours and then suddenly rip in either direction.
In my opinion, psychologists make far better traders than do economists so you are on the right track there but the idea that you can extrapolate 3 to 4 percent forever into the future seems unlikely, as you may need to withdraw some profits from time to time.
Exponential growth would eventually cause you to make a 20 to 1 leveraged trade with a substantial amount of money that could easily be lost. It is easy to be right on the market but wrong on the trade when using high leverage.
Turning $100 into $1955 over 4 months is commendable but I am sure you know that most professional people would want to earn at least $4,000 to $10,000 per month and have a lot of that go into a regular back up savings to cover the inevitable bad trade, slow week or in my case MF Global steals your money.
What would your account look like now if you had started with $10,000? Would you now actually have $195,550.00?
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is there a chart on the different types of investments availible?
Posted by Ryanita
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forex walkthrough
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arikutoy
I am looking for a comparison chart of things like forex, options, stocks, bonds, futures and so forth. Is there a sight that will let me see these in a chart form so its easy to follow exactly what each covers and the risk factor with the return times.
Wow Again i am "impressed" with how people cant read but answer a question. i just want to know if you know of a sight that has a chart showing the differences and similarities with these types of investments. pls no more stupid answers that arent connected to what i am looking for.
To David must feel nice to use big words and negative commecnts to make yourself look smart. Actually the chart is simple to make.. I will make one in a week or so when i get to this project. all it needs is a basic layout of what thing each investment goes into. the estimated return time of any profiit or loss. I know primary kids that could do it given the infromation already. actually this chart can be made by someone with a IQ of about say 100.
Answer
Hmm, let's see you draw a "comparison chart" of apples and oranges.
Can't do it, can you, genius? You haven't thought this through very much. Please, no more "stupid" questions.
The question has already been answered.
Ah, maybe I can guess what appears to make the question "stupid." You're looking for a list of differences, maybe, instead of a "chart" in graphic format. That doesn't exist either, because, as already explained, they are all different, separate, and contained in different locations and formats and involve different parameters. Nope, my mistake, you're asking for it in "chart form." Can't be done; it's just "stupid" to think it can be done.
You have no idea how general your question is, but are asking for specifics. In forex, there are more than a hundred currencies. Which ones? Since they trade in pairs, do you realize how many combinations that could be? Micro or standard account? There are also thousands of stocks; which do you prefer? For each optionable stock, there are hundreds, if not thousands of call and put options and thousands more combinations. Each and every one of these change every day and every second of the day. Which of these would you like to be available for "comparison?" At what moment?
"Return times?" What on earth is that? Are you asking about potential profits, before you have zero potential to earn a profit? That's pretty "stupid," and name-calling here will get you nothing.
Define your terms to clear up the initial confusion.
http://www.investopedia.com/terms/f/futures.asp
Forex Walkthrough
http://www.investopedia.com/walkthrough/forex/intermediate/level6/futures.aspx
Beginner's Guide To Trading Futures: Introduction
http://www.investopedia.com/university/beginners-guide-to-trading-futures/
Hmm, let's see you draw a "comparison chart" of apples and oranges.
Can't do it, can you, genius? You haven't thought this through very much. Please, no more "stupid" questions.
The question has already been answered.
Ah, maybe I can guess what appears to make the question "stupid." You're looking for a list of differences, maybe, instead of a "chart" in graphic format. That doesn't exist either, because, as already explained, they are all different, separate, and contained in different locations and formats and involve different parameters. Nope, my mistake, you're asking for it in "chart form." Can't be done; it's just "stupid" to think it can be done.
You have no idea how general your question is, but are asking for specifics. In forex, there are more than a hundred currencies. Which ones? Since they trade in pairs, do you realize how many combinations that could be? Micro or standard account? There are also thousands of stocks; which do you prefer? For each optionable stock, there are hundreds, if not thousands of call and put options and thousands more combinations. Each and every one of these change every day and every second of the day. Which of these would you like to be available for "comparison?" At what moment?
"Return times?" What on earth is that? Are you asking about potential profits, before you have zero potential to earn a profit? That's pretty "stupid," and name-calling here will get you nothing.
Define your terms to clear up the initial confusion.
http://www.investopedia.com/terms/f/futures.asp
Forex Walkthrough
http://www.investopedia.com/walkthrough/forex/intermediate/level6/futures.aspx
Beginner's Guide To Trading Futures: Introduction
http://www.investopedia.com/university/beginners-guide-to-trading-futures/
Can I make money in Forex from home if I have a few grand and a lot of time?
BOSCO
Answer
How long is "a lot of time?"
Take a look at the probabilities.
85% of new traders fail the first year. These statistics include some very smart people, so it obviously doesn't all depend on intelligence and capability. Is there something you're missing? Yep, too many things to list here. What makes you think that you will succeed when more than three-fourths of the people trying can't?
From one mentor:
Most traders we speak with have learning curves that have cost them between $15,000 and $70,000 and up to two years in time.
Forex Walkthrough
http://www.investopedia.com/walkthrough/forex/beginner/level3/trading-currencies.aspx
How long is "a lot of time?"
Take a look at the probabilities.
85% of new traders fail the first year. These statistics include some very smart people, so it obviously doesn't all depend on intelligence and capability. Is there something you're missing? Yep, too many things to list here. What makes you think that you will succeed when more than three-fourths of the people trying can't?
From one mentor:
Most traders we speak with have learning curves that have cost them between $15,000 and $70,000 and up to two years in time.
Forex Walkthrough
http://www.investopedia.com/walkthrough/forex/beginner/level3/trading-currencies.aspx
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Can someone tell me about reliable online Forex trading resources?
Posted by Ryanita
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online forex trading
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Q. I have tried a few FX Trading brokers but am not really satisfied with their services. Can someone please let me know more about reliable online Forex trading resources?
Answer
See the thing is, while investing through online brokerage firms; you need to make sure you are not being duped. Do not blindly trust any firm who says they can get you maximum return on investment. Always look for a reputed name, having a successful track record and a global client list. Only then can you be sure that youâre actually investing in the right place.
I recommend London Pearson; they are highly reputed investment and brokerage firm and have been serving organizational and individual clients all over the globe. They have expertise in handling investments in FX trading, CFDs, hedge funds and many other financial instruments. Just visit their website, www.londonpearson.com and you can read more about the services they offer.
See the thing is, while investing through online brokerage firms; you need to make sure you are not being duped. Do not blindly trust any firm who says they can get you maximum return on investment. Always look for a reputed name, having a successful track record and a global client list. Only then can you be sure that youâre actually investing in the right place.
I recommend London Pearson; they are highly reputed investment and brokerage firm and have been serving organizational and individual clients all over the globe. They have expertise in handling investments in FX trading, CFDs, hedge funds and many other financial instruments. Just visit their website, www.londonpearson.com and you can read more about the services they offer.
What is the best (reliable) online FOREX trading platform?
aerofreak
Hi Guys,
I want to start trading forex online (little amounts of money), however i was wondering what is the best online forex trading platform, or "broker" to get started with. I do not live in the United States, and i would want a simple, yet reliable one which i can access from my computer!
Thanks so much
Answer
I personally traded with oanda and did not like when they would widen the spreads 10X during volatile periods. Now Istay with FxPro and MBTRading. Maybe this post can help you: http://trd-life.blogspot.com/2010/07/5-ways-to-know-if-your-broker-sucks.html
I personally traded with oanda and did not like when they would widen the spreads 10X during volatile periods. Now Istay with FxPro and MBTRading. Maybe this post can help you: http://trd-life.blogspot.com/2010/07/5-ways-to-know-if-your-broker-sucks.html
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what is the real difference between forex spot and forex future.?
Posted by Ryanita
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forex vs futures
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ALEXANDER
besides that futures are centralized ecns at chicago and spot is none centralized.
and besides the time difference of operations.
please don't explain how its derived from the forward price etc..
Answer
There's just a difference in the premium, like in S&P futures vs index.
I've gotten better fills in the futures, especially when trading the reports, because futures are regulated by somebody and they can't rape you as easily, I suppose.
Liquidity is excellent in the futures, just can't get that insane 100:1 leverage.
There's just a difference in the premium, like in S&P futures vs index.
I've gotten better fills in the futures, especially when trading the reports, because futures are regulated by somebody and they can't rape you as easily, I suppose.
Liquidity is excellent in the futures, just can't get that insane 100:1 leverage.
what's the difference between FOREX and futures?
Adrian C
Answer
In forex, you are not contracting for something in the future. You are exchanging now.
This means that you have to put up the money right now and you are responsible for the interest differential. The really cool part is that with forex, you only have a spread and no additional commissions. You can also do any currency pair that your dealer supports, whereas in currency futures, you are dealing with some currency vs. the currency of the exchange (usually USD) so if you want to do GBP vs CHF you have to pay commission on two deals, going long on one and short on the other (to net out the USD).
In forex, you are not contracting for something in the future. You are exchanging now.
This means that you have to put up the money right now and you are responsible for the interest differential. The really cool part is that with forex, you only have a spread and no additional commissions. You can also do any currency pair that your dealer supports, whereas in currency futures, you are dealing with some currency vs. the currency of the exchange (usually USD) so if you want to do GBP vs CHF you have to pay commission on two deals, going long on one and short on the other (to net out the USD).
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How can I learn to trade Forex?
Posted by Ryanita
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Wednesday, December 11, 2013
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forex books
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theahole
I don't know much about finance etc. I downloaded a demo/ practice account so I can try and learn to trade forex, Its always something I have been interested in, kind of like gambling. I expect to lose my money, I view it as payment for having a little fun. I have no idea what im doing and the interface may as well be in Chinese, how do I learn how to trade? Even the "forex for dummies book starts assuming you have basic fundamental knowledge. Are there any instructions for people who are totally and completely ignorant to the way this all works?
Answer
3 Basic Forex Trading Strategies - Richard Krivo (YouTube VIDEO)
http://www.youtube.com/watch?v=880UGOQyK40
This video is about BASIC FOREX TRADING STRATEGIES that can be implemented in a variety of forex market conditions. I like this guy, easy to understand and learn from.
3 Basic Forex Trading Strategies - Richard Krivo (YouTube VIDEO)
http://www.youtube.com/watch?v=880UGOQyK40
This video is about BASIC FOREX TRADING STRATEGIES that can be implemented in a variety of forex market conditions. I like this guy, easy to understand and learn from.
Are there any good forex books by authors that actually make money on trading?
Tom C
I'm after a book introducing me to the inner workings of Forex trading. I've taken a quick look at a few books, but they all appear to be written by people that make a living from Forex trading, rather than writing about how to do it & providing seminars?
When you Google or Wikipedia the authors, you don't seem to find a lot of information about them, other than they have written a book!
Answer
Generally I find that people who make a good living from forex won't write a good book on forex or do seminars. They might write some short reports on their secrets or develop some software that they feel is revolutionary.
Being successful, I guess they don't have the time or the motivation as a normal writer or educator. However, I found that some of these reports by the successful traders are more useful than a basic book on forex. They go to the point of what matters, ie making successful trades rather than theory.
Generally I find that people who make a good living from forex won't write a good book on forex or do seminars. They might write some short reports on their secrets or develop some software that they feel is revolutionary.
Being successful, I guess they don't have the time or the motivation as a normal writer or educator. However, I found that some of these reports by the successful traders are more useful than a basic book on forex. They go to the point of what matters, ie making successful trades rather than theory.
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Is there any Real time Forex (Foreign Exchange) rate comparison sites like this ?
Posted by Ryanita
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forex usd to inr
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bargur24
I found this site when i was surfing. http://indiarealestatemap.com/irmv2/index.php?action=page_display&PageID=6
Is there any other site available to compare INR against USD ..in more real time ?
Thanks
Answer
Sounds like you need more signals/software than you have. :-)
This may or may NOT be new to you. But personally, I use what's known as the Forex Autopilot System.
I generated about $4000 in 3 weeks on autopilot. And this is just 1 of several accounts I let my robot trade for me . I'm still a bit nervous about trading on multiple accounts as this is new to me and i'm not rich yet, BUT...i started off with about $1000...so that's a pretty good gain. :-)
Anyways, here is a link to the program/software I use for this.
Let me know if you have ANY questions, and I hope this helps. :-)
http://www.squidoo.com/Forex-Course-Trading-
Jeff
Sounds like you need more signals/software than you have. :-)
This may or may NOT be new to you. But personally, I use what's known as the Forex Autopilot System.
I generated about $4000 in 3 weeks on autopilot. And this is just 1 of several accounts I let my robot trade for me . I'm still a bit nervous about trading on multiple accounts as this is new to me and i'm not rich yet, BUT...i started off with about $1000...so that's a pretty good gain. :-)
Anyways, here is a link to the program/software I use for this.
Let me know if you have ANY questions, and I hope this helps. :-)
http://www.squidoo.com/Forex-Course-Trading-
Jeff
exchanging USD or EUR cash to INR in chennai ?
dreambig_n
here is the thing, my dad gave me some foreign currency that i wanna use now as indian rupee. i have not travelled abroad so i dont have any pages in my passport filled. so how can i get this currency converted. it is not much would just amount to some 6000 INR.
how can i get this done? please any trusted sources hassle free ideas please without my parents knowing about it?
please help guys :( urgent need :(
Answer
Goto any local forex centre.
Second better option, exchange with friends who are collectors - it helps those others also to get a green bill !
PS: Not letting your parents know about it maybe something you think now alright, but otherwise when you grow up you may feel otherwise, there will be no harm to you if you let your parents know. They can help you get it done properly with their passport pages or shops, and they will know what is best for you, trust me !
Goto any local forex centre.
Second better option, exchange with friends who are collectors - it helps those others also to get a green bill !
PS: Not letting your parents know about it maybe something you think now alright, but otherwise when you grow up you may feel otherwise, there will be no harm to you if you let your parents know. They can help you get it done properly with their passport pages or shops, and they will know what is best for you, trust me !
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