With all kind of trading you must have rules, like if a particular currency you have bought goes down %1 you should sell it straightaway, therefore if you do lose the odd bit of cash it shouldn't be to bad. Some good video tutorials all in one place (and some articles) are here: http://www.guideforex.co.uk Another good site is: http://www.babypips.com nut legend
Not being so stupid for one, lol. But the other is to basically stick to my rules regarding money management, i.e. don't risk amounts that will lose x% of your capital in one go.
Hi, actually you don't have to find. Just open an online trading account, and you just have to buy or sell the price you want, and the order gets executed in a matter of seconds, because there are always buyers and sellers. But of course, you have to pick a stock that trades at daily volume at least 300,000, which you can find thousands of stock. But the hard part is you have to predict accurately or else you will lose money fast.
Yap, you pay tax when you make money on forex or stock market, but you won't get any money back when you lose.
I personally think it's a really good time to be trading. It's what we call a trader's market. However, it is a horrible time be LEARNING to trade. This is no place for begginers.
Hello, If in 5 or 10 countries you pay taxes for profits derived from capital management you may want to think of mooving,lol In EC for example in Cyprus if you make a Financial limited company your tax will be 10% in the net income of your company. As a person in Greece there is not any tax from Capital gains from trading in foreign currencies. Europe have the best trading zone,since the London open is the most desirable trading zone. If you dont like currencies you might want to specialize in precious metals for example, (gold,silver,etc). I dont like stocks. Cheers B
I guess that depends on when you pay the tax, you should to some extent be able to offset some of your profits against the loses, unless they are in different financial years. Also if you use spread betting in UK, then it is tax free as its classed as gambling (which doesnt incur tax). BUT... beware, if you start to make an income from spread betting and it becomes your primary source of income. You may find that you are liable to pay income tax (not capital gains), but this is a fairly cloudy area.
While in EU forex taxes are foggy and not applicable in many countries in US: "This 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. This information is for educational purposes only and should not be construed as tax or investment advice of any kind. Make sure that you consult with a tax professional about your forex taxes. 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." For uk Financial spread betting is the UK alternative to spot forex trading Financial spread betting is one of the most tax-efficient ways of trading the world's financial markets. Due to the structure of the financial spread betting, all gains are currently completely free of capital gains tax. (although tax laws can change). However, this does mean that any losses cannot be offset against future gains, but it is potentially a very small price to pay for this exciting trading derivative. Under current law, individuals in the U.K. have a government capital gains tax allowance of around £8,000 per year (2006/07), but once you have exceeded this, the tax exempt status of the spread bet makes it an invaluable tool in maximizing your profits. Since your transactions through FOREX BROKERS are considered bets, your profits are exempt from capital gains tax. Because spread bets are a derivative (not physically owned like a share), there is currently no stamp duty to pay. If you were to trade a position size each day of £25,000 through a traditional stock broker, you would have to pay the government £27,500 in stamp duty for the entirety of the year.
We said that.Only 5% win after long study and practice. Read the thread. And we said also that the best way is to learn to "fish your self" and not trust anyone with your money(money managers and the like).Said that too. B
Yah, I'm talking about different years as you pay tax only once a year. If you make money this year, you pay tax. And if you lose the next year, you won't get any money back.
Some people like their country, have a family, have children, have friends and have a social life Well, moving for tax purpose is another subject anyway
I don't think Forex is worth the risk, I used to be pretty keen on trying it out once but the fact that it is a zero sum game (for someone to gain someone else has to lose) it really put me off the idea. I just invest some money in shares because while it is about making money it is more rewarding to know that my investment can be put to good use while I can potentially make money. Also I thought that bull and bear markets were purely trends in that while generally the markets maybe falling there are individual stock that are on the rise.
Which forex broker do people use? I have never played the forex markets, so I have no idea what to look for in a broker.
You may read this concerning the difference between bucket shops and ECN Brokers: http://forexforum.gr/broker-discussion/396-what-difference-between-bucket-shop-ecn-broker.html
Well its not really a Zero sum game because of the spread, so in fact the only winners are the people who are getting the 2 or 3 pip spread each trade. Its like the rake in a poker game. Sit 10 players at a table and if they play for so many hours without leaving or one person taking all the chips, eventually they will all run out of money (the only winner being the poker room). So if you have 10 traders trading the same currency, either one takes all the money, or eventually they all lose to the spread. If it were a zero sum game, it would be much easier to profit.