Do Forex Traders pay tax?

Do Forex Traders pay tax?

Do Forex Traders pay tax?

Do Forex Traders also have to pay tax is the question I get very often.
My answer to that is yes also a Forex Trader pays taxes on his earned assets.
This is of course different in every country and in some countries you do not pay tax, also called a traders paradise.

  • Here is the maximum capital gains tax rate for individuals in some countries:
    -United States 37%
    -Sweden 30%
    -The Netherlands 31%
    -Germany 25%
    -Spain 23%
    -United Kingdom 20%
    -China 20%
    -Greece 15%
    -Russia 13%
    -Switzerland 0%

The rates described above are the maximum capital gain rates.
In many countries the effective tax rate on those types of earnings can be much lower, depending on the total annual income of an individual, as well as on other circumstances.
Also, a number of countries do not have a separate rate for capital gains and the tax is therefore passed on at the same rate as income tax.

How do you calculate the tax you have to pay?

We can determine this from two parts.
The first thing to do is calculate your so-called taxable income.

-In forex, this is the payouts that you have made with the winning forex trades.
Of course you can do this the hard way and calculate every trade you make yourself. It is possible but not convenient.

-Let me make it clear that you really do not have to calculate every winning trade.
No you can do this at the end of the year.
You often also receive a special tax document from your broker at the end of the year.
This makes it all a bit easier, doesn’t it?
So you can use this document for your tax return.

Capital gains and losses / Do Forex Traders pay tax?

We see that it works differently in every country when it comes to paying taxes on your earned forex capital.
Each country has its own rules and percentages.
You can obtain the best advice from your government / tax authorities.
So do this so that you will not be faced with surprises later.

Tax haven for traders.

Of course there are also countries with a very low tax rate or countries where you don’t even pay tax at all.
And let’s be honest, isn’t this a paradise for traders like you and me?
Below I will mention some more countries that are a true paradise for traders and entrepreneurs like us.

-Bahamas
If you are a resident in Bahamas, you pay no tax on your earnings at all, regardless of where you generate your income.
One striking reason behind this is that Bahamas’s earnings are from traveling and offshore industry, but does not rely much on income tax revenues like some other countries.

-Bermuda
No corporate income tax is imposed in Bermuda, resulting in less compliance burden for corporations.
Additionally, regardless of whether you are Bermuda residents or not, you are free from personal income tax and capital gains tax in Bermuda.
There is also no withholding tax levied on dividends, royalties, or payments for technical services in this country.

-The United Arab Emirates
There is no individual income tax, no withholding tax, and no foreign exchange control in the United Arab Emirates.
A 5% VAT tax rate may be applied; however, certain services and goods would be exempt from it.

-Cayman Islands
Dividends, royalties, interests are free from withholding tax in the country, and there is also no VAT tax applied.
No direct taxes would be imposed on its residents.

-Switzerland
Capital gains tax paid in Switzerland depends on whether you are categorized as a private investor or as a professional investor.
Private investors do not pay any tax.

Do you want to know exactly how much tax you pay on your forex income in your country.
The best way to find out exactly is to contact your local tax authority or government.

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If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

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How to handle a losing trade?

How to handle a losing trade?

How to handle a losing trade?
Let’s face it we all know that every now and then we have to deal with a losing trade.
And this is not bad at all and this is completely part of it.
And if you have good risk management, it doesn’t have to hurt at all.

I think every trader can identify with blowing up your trading account.
This often happens when you have just started trading and you think you are all there with just a good trading strategy.
Then your trade goes into the min and you stick to your strategy and you move your stop loss more and more or you remove it completely.
Eventually the trade keeps going the other way and you get that annoying message from a margin call.
I bet almost all novice traders have had to deal with this at some point.

How to handle a losing trade?

Or simply the fact that you trade too large a lotize on your account that is too small.
This one will also be familiar to many traders, I think especially in the beginning of the trading career.
How painful is it if you lose your entire account with just 1 losing trade that you may have spent months trading it together? ouch!

But how do experienced traders do this, how do they deal with a loss?
It is actually very simple use strict risk management!
Perhaps this is also one of the most important parts that you should learn before you start trading.
Only risk a small percentage of your account at a time!

How to handle a losing trade
How to handle a losing trade?

Give your trade room to move and don’t worry too much.
And if a trade takes too much time to gain profits, you take the loss and cut the trade lose earlier and than you can look for other trades!

How to handle a losing trade?

Just remember that you are going to lose money. This is going to happen, and it cannot be avoided in the long term no matter what you do.
There are factors outside of your control, and this means that you can prepare as much as you like, something will still go wrong.
Keeping that in mind, remember also that this doesn’t have to be a bad thing.
If you lose money, so be it.
The fact of trading is that things move very fast.
If you actually expect to lose some of the time, but make larger winning trades when you do win compared to when you lose, then you are making progress and profit.

Everyone knows it gets rough, and you can’t just ‘win’ because of luck, or even your skills.
Sitting back and cutting your losses is actually part of a successful trader mindset.
Ignoring this makes no sense.

Set a reasonable loss limit and leave it there. Then get on with your trading.
This way, no matter what happens, you’re not going to lose everything even if you have a bad day.

Do you want to become Success Supply and Demand Trader or want to know how to handle a losing trade?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

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Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

Identifying momentum and structure in Supply and Demand.

Identifying momentum and structure in Supply and Demand.

Identifying momentum and structure in Supply and Demand.

Identifying momentum and structure in Supply and Demand.
Recognizing momentum and structure is very important to be able to trade correctly.
In this blog I will tell you more about this and I also made a video about it, watch it after reading the blog.

We start with determining the highs and the lows.
In the example below you can see how I determine and draw this.

Identifying momentum and structure

Identifying momentum and structure in Supply and Demand.

You can clearly see the High and the Low here.
This way you can immediately see the range in which the price is currently moving.
The price zone at the top of the image also shows a very important Supply level.
It is a critical level that you should always keep an eye on, often we see at these levels that it can be a very good turning point in the price.
And we can clearly see that in this image the price reaches the Supply zone, breaks through it slightly and then falls all the way back (Sellers Pressure).
Many Sell orders have been placed in this level.
That explains why the price was pushed up slightly at the zone and then fell completely.

Identifying momentum and structure in Supply and Demand.

Identifying momentum and structure in Supply and Demand.

Demand zone

You see the Demand zone in the image above and we can also see that price has already responded to it twice before and the price went up again from the Demand zone.
Here we could have already taken a nice buy from the Demand level twice.
Then the price returns for the third time in the Demand zone, we also see a clear rejection in the Demand zone and the price shoots up (Buyers pressure) all the way to the Supply zone above.

We also see very well the structure of the price here, we can clearly see here that the price was making Higher Lows and Higher Highs.
Just take a look at the image below.

Identifying momentum and structure in Supply and Demand.

Identifying momentum and structure in Supply and Demand.

In this image we clearly see the structure that slowly moves upwards from the demand level.
And in this range we can also see multiple levels that we can trade from.
The most important thing is that you learn to recognize these Lows and Highs and that you can find them back the charts.
And of course it is also very important to also use the Supply and Demand zones where the price often makes this critical reversal in combination with the price structure.

In the video that I share with you below, I explained everything again. Watch this video and take in all the information.
Of course it is also important that you continue to study the charts and continue to practice to learn to recognize the Structure and Momentum.

Identifying momentum and structure in Supply and Demand.

Do you want to become Success Supply and Demand Trader?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

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Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

 

 

Trends And Structure trading / Supply & Demand.

Trends And Structure trading / Supply & Demand.

Trends And Structure trading Supply & Demand.

The market moves in 3 structures: uptrend, downtrend and sideways. The whole market revolves around these three concepts – this is how the market can move.

-Up Trend: If the trend goes up the Euro is worth more.
-Down Trend: If the trend goes down the Euro will lose in value.
-Sideways Trend: Prices move in a narrow range.

Trends And Structure trading

Trends And Structure trading

In the video below I will go into more detail on Trends and Structure trading in combination with supply and demand trading.
We all know that following the trend in forex trading can be very important.
Of course we can also take countertrades, but the fact remains that countertrends are generally a lot more risky than the trades that go in the trend direction.

Especially for novice traders, the traders with less experience, I strongly recommend not to trade against the trend as long as you do not have enough experience.
Following Trends and structure in trading is also very important, especially if you want to go for a bigger profit.

I often see this happening in my community, then I get the question why did this trade go wrong?
Why did this trade hit my SL? And you often see that a counter trade has been taken with a much too high TP level.
Which is less likely to hit this TP with a counter trade.
With a counter trade if you still want to trade it, I always recommend that you keep a close eye on the trade and always pay attention to possible reversals in the direction of the trend.

Be sure to watch my video if you want to know more about this. I also have more videos on youtube with good explanations and tips.
And of course, don’t forget to like and subscribe to my channel. If you want to know more about my course or trading, feel free to contact me!

Do you want to become Success Supply and Demand Trader?

If you are a beginner trader and to become a good professional forex trader. The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

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