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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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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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

Fibonacci Retracement in Forex Trading

Fibonacci Retracement in Forex Trading

What is Fibonacci?

Let me start with a little more to tell about it.
So the idea behind it is the very first thing that you need to know about the Fibonacci tool in trading.
The inventor was Leonardo Pisano Bigollo.
And he was an Italian mathematician more commonly known as Fibonacci.
He lived in the late 12th-early 13th century.
And among other math enthusiasts Leonardo really stood out.
As he introduced the numeral system to the West.
Meanwhile he defined a series of Fibonacci numbers.

By posing and solving an issue involving the rabbit population the Fibonacci sequence was created.
Nice huh?
So Fibonacci introduced the series which probably originated in the 6th century.
With using idealized assumptions.

For example every number in the series beginning with 0, 1, 2, 3, 5, 8, 13, 21.
And so on it is the sum of the preceding two.
In short A 0 at the beginning is also used in the current version of the series.

So what does trading have to do with all this?

Well because the Fibonacci series managed to survive for so long.
So it’s fair to say that it came in handy.
All the way up to modern-day trading.
So where the sequence numbers are used to measure the precise levels.
That the price can communicate with on the chart.
Fibonacci retracement ratios are also called fib levels.

How to Calculate the FIB Levels:

Ok let me explain.
So you first have to understand where the retracement levels come from.
In order to begin trading with using the Fibonacci series.

Forex retracements are temporary market reversals within broader patterns.
And the thresholds of retracement are used as virtual limits from which the motion can bounce off.

The analysis of the Fibonacci retracement allows traders to visualize these limits.
And make trading decisions more efficient.
Since the Fibonacci retracement formula is integrated into the MT4 and others.
And a general understanding of the basic math behind it can be beneficial.

Fibonacci

Do you want to become Success Supply and Demand Trader?

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

So to become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.
Join 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

What is forex trading and how does it work?

What is forex trading and how does it work?

What is forex trading and how does it work?

There are several reasons why anyone would turn to the forex market for investment.
All the factors we’ve seen discussed over the years are profit, hobby, experience, gambling, and entertainment.
Every investor starts out in the same place.
So no matter the reason for trading forex everyone gives their own interpretation to it.
Just like a beginner trader who is not quite sure how to get the best out of the market.

Here are some tips about What is forex trading and how does it work?:

What I need to know before I start forex trading?

  • By reinvesting gains, raise your trading portfolio.
    Don’t rush for more capital to be added.
    You need to see that the benefit comes from your initial investment because you are here to make money, not to gamble.
    You may sleep peacefully with the help of reinvestment, trusting that you will not lose more than is necessary.
  • A comprehensive trading strategy has to be established by any forex trader and pursued no matter what.
    What is more, do not let your actions be dominated by emotions.
    It is possible to avoid possible losses resulting from unreasonable expectations or optimistic ambitions by following a strict plan.
    Which can often overwhelm some beginners.
  • Any position in Forex trading can result not only in benefit but also in losses, which means that not everyone will be prepared for that.
    So before diving into this dangerous ocean with both feet, think twice if this is what suits you.
    If the answer is yes, then make sure that more than you can afford to lose.
  • All in all, forex trading is an activity for advanced investors who are willing to take advantage of all the opportunities presented by the market.
    This is not just the truth of earnings, but also the chance to work, just get the laptop and wi-fi, from almost anywhere across the globe.
    But without a proper attitude and persistent effort, fantasies won’t be true.
Do you want to become Success Supply and Demand Trader or want to know more about What is forex trading and how does it work?

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 is 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 Demand.
join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills.
And 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

Benefits of Using Economic Calendar in Forex Trading

Benefits of Using Economic Calendar in Forex Trading

Decision making is necessary for traders. Setting up an investment target and selecting a particular financial instrument for Financial trading will only deliver the desired return on investment if you know what drives the market and when it’s the right time to join or exit your trades. Traders in the Forex trading use an economic calendar to pay careful attention to global events. By having the release date for each economic indicator, a trader will predict when there will be big movements.

 

The economic calendar offers valuable information about future macroeconomic activities by pre-scheduled news conferences and policy reports on economic indicators affecting the financial markets. This should not only help you track a wide variety of global economic events that keep moving the market but also make the right investment decisions. Since market reactions to global economic events are very rapid, you’ll find it useful to know the timing of these future events and adjust your trading strategies as necessary.

The economic forex calendar is an event-based calendar that traders use to keep up-to-date with financial information coming up. A forex calendar includes information for various countries ‘future and past economic events and may suggest the trader in certain currency pairs’ possible volatility expansions. Each currency is representative of the country’s economic, political, and social stability. Changes in a country’s economic indicators are likely to affect the value of the respective currency in this relation.

Growing event is rated according to which website you are using on an economic calendar. Minor incidents that are likely to have limited business effects are called “low” (low effects) or have no special markings. Events that may have an effect on the market are called “Normal,” and typically have a yellow dot or yellow star next to the case. Yellow suggests at this time a certain caution is warranted. Red stars/dots, or “Big” labeling, signals a major release of news/data which is highly likely to significantly change the market.

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How to Control Emotions In Forex?

How to Control Emotions In Forex?

The Forex trading psychology is more to do with traders instinctual market reaction. Uncontrollable emotions are possible in a changing trading environment, particularly during the Forex market movement. Most of the time, people fail in Forex trading because of emotions and uncertainty about trading which can lead to uncalculated trading. Usually, the result is poor returns! In order to trade effectively, you need to take charge of your emotions or control emotions in Forex, remove any trading fear, be optimistic and make sure you avoid foolish trading errors that can cost you money.

Tips to Control  Emotions:

  • The first tip to controlling your emotions is to build the ability to overcome your feelings. Many traders are involved in more than they afford. The forex is not sympathetic to any traders engaging in over trading, particularly those starting out on the forex market and having zero experience.
  • Start by writing down your trading rules and creating a trading plan to control your emotions. Instead of having them in your mind, it will set you in check, so that you will not infringe from the rules when emotions kick in the journey of trading.
  • Understand that you’re going to win some, and lose some others. Sometimes you are going to be successful in your trading and sometimes you will not be profitable. Losing is the part of the game as winning. Come to terms with that simple fact.
  • Trade with limited money to allow a buffer when those trades that come to losing trades. Don’t risk money that you can’t afford to lose, either. Be prepared to handle the losses, because losses will come must! That’s just how the market works.

Most beginner traders are riding an emotional rollercoaster, feeling at the top of the world after a win, but after a loss they down in the dumps. Conversely, even after a series of losses, most professional forex traders remain relaxed and calm. They don’t let them feel influenced by the normal ups and downs of trading. You’ll want to do the same as a good trader stay calm and as unemotional as you can. We know that can be tough. Even the experienced trader loses composure and allows emotion to take over. This is a natural thing, many traders of beginners would begin to doubt their techniques and decisions.

Many Forex traders see Forex as choosing to trade like shopping rather than proper trading. Through shopping, mean spending the buck on items without preparation when the sudden urge occurs to do. So, rather than trading based on your feeling, it’s best that you have a good plan and stick to it. The stop loss and profit goal must be taken into account in your strategy. A strategy provides an easy way for you to get out on time when the market is moving against you and to generate profit when it is going in your direction. The key to dealing with negative feelings that threaten Forex traders is to have a strategy that indicates and when not to trade. This technique works as you would like to make a personal decision about your trade.

 

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