Archive for the "Trading" Category

19.12.2012 Post in Trading
Alexander Elder, one of the greatest specialists in the field of finance, was born in USSR. He graduated from the medical university and when he was 23 in 1974 he emigrated to the U.S., where he lives to this day. Today, Dr. Elder is professional trader and a recognized expert in stock trading, who wrote numerous articles on the subject. He worked as a psychiatrist and taught at Columbia University. In addition, Alexander is an author of several books about stock trading, which received a lot of good appraisals. From there he made his name as one of the most reputable experts in stock trading. It all started with a KinderCare share which he bought at the beginning of his trader’s path.

As a psychiatrist, Dr. Elder is well versed in the intricacies of the human mind, so it could not but influence his understanding of trading. He sees not only the deal details, but the personal attitude of traders before, during, and after the deal. It is of key importance that he successfully applies his knowledge to explain market behaviour.
According to Alexander Elder, there are three types of traders:
  1. The trader who is technically literate but has no skills on analyzing the motives of behaviour.
  2. The trader who realises that technical knowledge is not a guarantee of success. Elder calls this the awakening of a psychological understanding with respect to stock trades.
  3. The trader who understands that successful trading requires control and money management. Rather than letting statistics move him, it is money management and control that causes him to anticipate future positions.

Bright personality and wide experience enabled professor Elder to write a range of best-selling books that won the world’s hearts and minds. Elder’s books “Trading for a Living” and “Come into My Trading Room – A Complete Guide to Trading” are the classical trading tutorials. In 1993 “Trading for a Living” became an international business bestseller which was translated into 9 languages, including Chinese, Dutch, French, German, Japanese, Korean, Russian, and Polish. Elder’s “Trading for a Living” won Barron’s Best Book award in 2002. Dr. Elder takes an active part in free educational projects, which he initiates himself, and also trains the younger generation through his webinars available on the Internet.

In conclusion, Alexander Elder said:

The fear – the main problem for the trader. If you have everything you need – the system of the game, the rules of capital controls, the psychological rules prevent loss, it means it’s time to play the market”.

12.12.2012 Post in Trading

The stage of your professional development does not play a significant role. If you are engaged in the work on the international currency market the economic calendar will be an irreplaceable tool for trading. There is no doubt that it is used by different traders to a greater or lesser extent. However, those who take into account fundamental analysis cannot manage without Forex economic calendar.

Firstly, the calendar contains detailed timetable of the macroeconomic data. As a rule, it provides information pertaining to the previous, expected, and current figures of the indices. Economic data has considerable influence on price fluctuations. That is why information presented in the calendar may help to elaborate the most profitable trading strategies. Due to the calendar you can change your trading strategy. Moreover, market data updates in real-time.

Thus, using Forex economic calendar you get the possibility to react timely and immediately to major affecting the international currency market.

05.12.2012 Post in Trading

What does a word “futures” imply? It is a derivative from English word “future”. Futures contract is a certain agreement to make a deal in the future at the fixed price. The main advantage is small start-up investments. Thus, if you buy futures, you can earn even more a bit later than when you buy stocks.

There are three types of futures: commodity, financial and stock index futures. How to make a choice? Better choose the instrument which liquidity is high enough to enter and exit the trade easily.

In order to make money while trading futures, be sure that the price is changing noticeably. Only in this case you can snatch a large sum. If the fluctuations are insignificant, you will not earn a lot.

With every year the demand for futures is increasing. For some futures contracts is a good opportunity to trade actively, for the others (as a rule seasoned traders) – a great instrument which can be used instead of stocks and can help to decrease expenses. Such kind of investment is beneficial for both bulls and bears.

Doubting if you can earn with futures? Do not hesitate, everyone can make a good profit trading futures! But do not be emotional: rely on common sense and do not invest your last penny.

28.11.2012 Post in Trading

Prior to starting trading actively on Forex, the trader should consider many factors which affect the market behavior, including holidays in different countries. When trader knows the dates of major holidays, it helps him to understand the market peculiarities at different periods of time.

To begin with, Forex working schedule is very convenient: it operates 5 days a week, from Monday to Friday. The weekends are set for Saturday and Sunday, but even during these days the trading does not stop, just shrinks significantly and can be carried out mainly on major currency pairs. Apart from the weekends, Forex activity can be interrupted during public holidays which widely affect the work of the market. As far as Forex is subdivided into 4 sessions: the European, the American, the Asian, and the Pacific, and due to public holidays in different countries, the market activity is changing constantly. When there is a holiday in a country or a group of countries, the trade can be performed with a delay and at the end of the weekends the situation may turn against the trader. That is why it is necessary to pay the outmost attention to such deals.

Undoubtedly, not all public holidays are of great importance and can trigger slowdown in activity of several countries. Basically, there are just New Year, Catholic Christmas, and Labor Day. But the work does not stop completely on currency exchange and in the economic world even during such occasions: information and finance flow provide trader with a great volume of information for Forex analysis. Despite that the price of some currency pairs moves much slower, after the break is over, traders expect new changes as Forex, undoubtedly, will react to new events.

12.09.2012 Post in Trading

There is no secret that trading is potentially profitable activity and therefore taxable. However, the issue remains vague while there is no question that any other employees are supposed to pay income taxes. So we will shake off the fog of obscurity and find out whether traders have to pay taxes.

Firstly, it should be noted that traders should pay income taxes according to the laws of the country they live in. In Russia revenue from Forex deals is taxable and Forex market is an official source of income. Therefore, just hypothetically, traders must pay 13 percent of their currency market earnings. However, when you think of the practical aspect of the matter, you can see some details that refer to no articles in the tax code.

It is not clear how tax administration will control the revenue of traders if they do not use their VAT number while trading on Forex. So if a trader does not file a tax return, tax officials will not receive his/her revenue information. It could be seen only when the trader will cash large sum of money or make a big purchase. Then tax inspectors would become interested in the source of income and demand an explanation. The trader risks being fined for tax evasion. Another question is how exactly 13 percent income tax is calculated. There is no consensus on this point.

There are also the ways of keeping money invisible for authorities. For example, the funds on Webmoney accounts are not taxable as they are considered non-bank currency in Russia. So tax officials should take it into consideration in order to improve the taxation and remove barriers from trading on Forex market.
In conclusion, it is up to you, whether to file a tax return or not, because only you are responsible for it. In any case, you should see that your actions are legal and weigh your risks.