Economic Calendar - forex trading tax irs

Economic Calendar ~ forex trading tax irs

Earlier, actually in the last post i wrote about importance of knowing what economic data that affect Forex market will be relased and when. This information alone can save you a lot of pain, because, after some key economic indicators are relased, prices in just few minutes can go +200 pips up, and then out of sudden 300 pips down.

This mainly affects day traders or scalpers, and the EURUSD currency pair. I belive there are many ways you can deal with market moving indicators, but i will list two of my ideas i have came up with:

• Few minutes before economic data announcement hedge your position.
• Not all Forex brokers allows to hedge, if yours not, then you can close your position before data release and open a new one after market will "calm down".

And obviously do not make new trades (other then hedges) before economic data announcement.

More over important economic data dictates trend of the market, so you can use it for simple Forex fundamental analysis.

But the most important question here is, where do i get this data and how will i know which is important and which is not? My all time favourite source for economic data is bloomber economic calendar, which you can find here: ECalendar.

I like this calendar because, it places icon next to particular event, which tells me how important this event is, so i do not have to make my own research on every single event.

From my experience i can tell you that, two events responsible for the biggest moves are: Employment situation and FOMC meeting.
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Amero Revolution - forex trading tax laws uk

Amero Revolution ~ forex trading tax laws uk

Recently i was watching movie Zeitgeist. Pretty cool movie if you havent seen it i advice you to do it. It consists of three parts first is about Christianity and Jesus, second amd third are about America, power and money which interests most i belive.

Anyway, in a part three there is mentioned new currency Amero. Which will be new currency for North America (Canada, USA, Mexico). So it seems that end for our favourite currency pair is neer, and the question is not: will it happen? will USD will be replaced with Amero? but rather when will it happen? From my informations it will be around 2010, but really it is hard to tell.

The best way to replace USD is to make it weaker and weaker which is happening and we can see it on our Forex charts. So maybe it is a good idea to take long term position against dollar?

This is not important. What is important is this. How will new currency affect Forex market? In my opinion not much. It will be a currency as any other currency on Forex, the only problem will be a fact that there will be no history for it.

This means no backtesting, and even no "space" for technical analysis. However these will be problems only for long term traders or swing traders. I guess scalpers will be okay with this because they do not need a lot of data, but i do not know i am not a scalper.

However, what concerns me most is that we will loose three currencies and gain only one new, which happen further again because of Asian union which is getting ready to introduce asian currency (asio?).
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Standard Deviation Channel - forex trading tax in usa

Standard Deviation Channel ~ forex trading tax in usa

I recently read article about, about standard deviation channel, (which as you may already know is one of my favorite indicators), and I was shocked, although author of this article explained what standard deviation channel is in mathematics but it had very little to do with Forex or any other financial market. Furthermore, I read other articles about standard deviation channels and what I found out is that they all were giving useless information to readers, so here is the right way to use standard deviation channel.

First of all, authors suggest that, when price will reach upper line, it is time to take SHORT position and vice versa, when price will reach lower line you should take LONG position because market is oversold.

This is true only if market is trending. It is quite safe to treat then lower line as support line and upper line as resistance line, and more over (depending on your standard deviation channel settings) 95% of price movement will happen between this two lines, as long as market is trending. The obvious question here is how to tell if Forex is trending, but this question is beyond the scope of this article, at least for now J.

What I like about standard deviation is that it allows to easily determine trend, you just need to draw channel over the selected period of time and that’s it, you have detected trend. However to use this indicator efficiently you need some experience, ideally you should see channel on the chart before you draw any lines on it. If you don’t see it, then do not worry it is all about experience.

How to use correctly Standard Deviation Channel

If market is in uptrend, you should take ONLY long positions, when price will reach lower line. Never take SHORT position in uptrend when the price will reach upper line, that do NOT mean that market is overbought, in uptrend price can easily go waaay over upper line and hit STOP LOSS, of trader who was stupid enough to take SHORT position in bull market.

Obviously, the opposite goes for market in downtrend, do not take long positions on lower line, NEVER.

Most importantly, this indicator is called standard deviation channel and you should use it only with CHANNELS not with any random piece of chart, below is the stock market chart with two correctly drawn channels.

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