FOREX trading?
Question by ELF Earth Life Form – Aubrey: FOREX trading?
I am just getting into Forex trading in Japan.
Other than “DON’T”
Any good ideas?
These answers are excellent.
Esp the tax answer.
Best answer:
Answer by Jeff H
Never allow one position’s leverage to consume your entire portfolio. Figure out the maximum downside for each move, and only commit a % of your total funds to that position. You may feel certain and be tempted to go for broke, but a more cautious approach will keep you in the game.
What do you think? Answer below!
4 comments
Permalink • 1
As mentioned by Jeff H…. Money Management is the most critical skill to acquire.
My additional suggestion;
Stay clear of “Alert Services” they generally don’t use good money management. You could “win” 70% of your trades and still be wiped out.
2nd;
There are no “short cuts” or systems… as appealing as they sound.
Permalink • 2
I ‘m a Japanese trader and involved in FOREX somehow.
I think others can tell you how to make profit in FOREX. So I’ll tell you about tax in Japan.
Tax on FOREX profit is divided into 2 cases. One is tax on profit made in normal FOREX brokers. The other is tax on profit made in “Click 365″.
Click 365 is the only exchange based FOREX service in Japan. If you make profit in Click 365, your tax rate will be 20% fixed.
On the other hand, if you make profits in other FOREX brokers, you’ll have to pay taxes up to 50%. So clearly, Click 365 is better. But there are some disadvantages in Click 365.
1, Currency pairs are so few.
2, Brokers are few.
3, There is a 10 minutes or so time during 24 hours when you cannot buy or sell if you trade NZD/JPY. Even stop order does not work.
But in Click 365, you can put your loss forward so that you can set off with profit in the next 3 years.
Permalink • 3
forex is too risky becareful or u will loss your money
Permalink • 4
Your best way to proceed into the Forex market is to be somewhat cautious and get a little knowledge on the mechanics, the risks and the idiosyncracies of the marketplace.
The biggest problem withthe Forex market is that the advent of electronic trading and the potential for attractive profits has made in way to easy for uneducated people to rush into the Forex market and lose their hard earned money before they even knew what happened to them.
The Forex market does involve risk, and one should never invest money that they cannot afford to lose. Fortunately we have the abvility to trade in practice accounts without risking any money until we have properly honed our trading skills.
The Forex currencies move quite quickly and frequently. There are successful traders that have the time, the discipline and the knowledge to be constantly monitoring their positions and make frequent trades throughout the day to capture profits and/or to prevent losses.
There are other Forex traders that inplement strategies that will lessen the risks associated with constant market movements with a hedged position.
These investors take a longer term view on their positions and are comfortable receiving an interest payment everyday, making small additional purchases and sales as the market does it’s dance and generating a comfortable monthly return on their positions.
I recommend to all my Forex colleagues to begin with a conservative approach and then if they want to move into more high frequency trading thay can do that later once they gain a bit more experience. What I find is that once I teach them a couple of conservative strategies they are quite comfortable continuing with this approach.
Good luck to you and I would be happy to send you some additional information.
Paul
pupp50@yahoo.com