Forex Taxes

[G-Man]

Good observations Maverick. Spot on. I wish I was only 19 when I first discovered trading and FX in particular, (although when I was 19 the market wasn't available to Joe Public the was it is now).

I think that you were done a great favour by loosing money when you first went live. When I first strarted trading I made 5,000 points a month for the furst 2 full months. This subsequently made it appear easy, and therefore provided some hair raising and confusing periods after.

The one point I would add top newbie traders is take time to find what type/style of trading suits you. Trader A may be doing great and you want to emulate them butif their style is not compatible with your requirements/personality than you would probobly not be able to replicate their success.

Good trading.

G-Man

 

[cotoho]

Hi Nick,
Interesting stuff on your post. I have been trading options(stocks). I have been thinking about heading in the fx direction. I ran into a woman who just started by learning from refcofx.com. She has used play money for a coupld of months and then using real money on a mini account was making consistent profits, small but consistent. Ever heard of refcofx? Anyone have any thoughts?
Dan

 

[Straybow]

I looked at options and futures years ago and it made me very uneasy. I didn't get in. Now with much less capital I've gotten in to forex. It has a number of appealing advantages for me.

You can read horror stories about almost any broker, so you can't judge solely on the anecdotes on the boards. RefcoFX, FXCM, Forex.com, etc advertize fixed spread trading, so that no matter how volatile the market your ability to profit stays the same. However, some people have experienced strange behavior during big market moves.

There are rumors about trades and prices being manipulated, but I believe a substantial portion of that rumormill arises from sour grapes. (I should know, I've had my share.) The fact is that if any such manipulations could ever be substantiated there would be jail time for the people, fines against the brokerage, class action lawsuits from the account holders, huge rewards for whistleblowers... the whole nine yards.

I should mention that FXCM had a trading violation a year ago. I don't have a link handy, but references to it can be found fairly easily. RefcoFX is FXCM's parent company IIRC. I should also mention that my account is with FXCM, so that tells you how much stock I put in the rumors.

Other brokerages provide 2-4 pip spreads during slack periods with widening spreads around FAs. That's the way to go for some people who prefer avoiding the whipsaws. OandA is one that many people swear by.

 

[cotoho]

Thanks for the feedback. Since I am new to forex I am also interested in the training lessons they offer. $499 for a daily lesson for a month.
Thanks,
Dan

 

[Straybow]

I was introduced to Forex by a friend (whom I call my mentor in this field). He took some classes from MTI. More expensive than FXCM. I got to watch over his shoulder. MTI has a subscription charting package (FibTrader with a prorietary indicator) and a chat service, $100/mo each.

My mentor is the most non-technical guy I know, says he had headaches after training sessions from trying to understand anything beyond simple candlestick formations. So he doesn't use anything more complex than that. He spends a couple hours in the morning, watching charts and chatting with the MTI guys and other experienced traders, and either sets up a trade (typically 2 lots) or doesn't. Then he walks away. He was averaging $200-400 a day.

 

[cotoho]

Thanks for the reply. Are you having success like your friend is?
Dan

 

[Straybow]

I did fine with the demo acct, but I've managed to shoot myself in the proverbial foot with real money. I've found it difficult to walk away, to not do something. I've second-guessed instead of putting in the trade the tools and principles tell me. My big screw-up was a failure to set a real stop loss, falling asleep on the couch, then the Cable moving when the European mkt opened instead of waiting for a 13:30 GMT fundamental. (My original intent was to get out before the FA...)