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Lincoln Ferguson

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  1. Hello, thank you for asking about this topic! Both of these markets bear specific pros and cons, and traders that employ different styles of trade may favor one over another. For example, if traders like to engage in long-term trades they will prefer the stock market, but if they like short-term gains, such as swing traders, day traders, and others, then they will opt out for Forex markets trading. When choosing in which one to invest, traders should consider these two things: Volatility- if a trader doesn’t mind high volatility and high turnover market, then he should opt for Forex, on the other hand, if a trader favors a market that offers lower volatility, and a lower risk market, then the stock market is the one to choose. Trading Hours- This is another thing to consider when choosing a market, in the stocks market, these hours are usually fixed to 9:30 A.M. to 4 pm Eastern Standard Time (EST), Monday through Friday with the exception of market holidays. The Forex market, on the other hand, remains active round-the-clock from 5 P.M. EST Sunday, through 5 P.M. EST Friday, opening in Sydney, then traveling around the world to Tokyo, London, and New York.
  2. Hello, I would like to know how to avoid losing money in Forex.
  3. Hi, thank you for posing this question! In the United States of America, Forex is taxed on a 60/40 basis, which means that 60% of gains or losses are counted as long-term capital gains or losses, while the other 40% is taxed as short-term capital gains or losses. This is favorable for Forex traders as the profit they make in one year is counted as short term, and they are taxed a maximum 37% of their gains, on the long-term basis this amount doesn’t exceed 15%. There are also multiple benefits and other tax reliefs if you incur losses in your yearly summary, where all of these are counted as losses when being taxed, not only a portion of them. It is important to file taxes properly, using a correct form, or you may encounter difficulties and penalties. If you are not sure how to do this, the safest bet is to pay companies or individuals that will file your taxes for you.
  4. Hello, I would like to know how Forex pairs work?
  5. HI, thank you for your question! Scalping in Forex is a method used by traders, where they buy a specific amount of money, and then sell it in a short time period, hoping to earn profits based on the currency’s recent increase in value. This can be done in automatic or manual style, manual style means that the trader is active in real-time, looking for the signs that may indicate a profitable scalping, and acting on these signs. In automated systems, there are already pre-made computer programs that signal a trader when he should buy or sell currencies. Scalping is usually most profitable when an important event related to the economy occurs, this is because these events cause a large value shift in a short amount of time. With profits come risks, and when a loss in value happens and a scalping strategy is employed, losses are usually more significant and larger in value than the ordinary ones. The most common strategies of scalping are trend-following and counter-trend ones. The former means that traders should anticipate short-timed positive improvements in trends, and using this, gain profits, while the latter advises traders to expect to counter overall trends.
  6. Hi, I would like to know about the working hours of Forex markets.
  7. Hello, thank you for asking! Foreign Exchange, also called Forex or FX, is the currency market. For instance, you can swap the US dollar for the euro. These exchanges take place on the currency exchange market also known as Forex. The Forex market is the largest market for trading currencies, where trillions of dollars change owners every day. It is not centralized, but rather a well-connected network of banks, investors, brokers, institutions, and individual traders (retailers). Traders trade currency pairs, where they are listed one against another, showing their relative value, according to their currency pair partner. They come with a listed price, which tells you how much a pair is worth.
  8. Hello, I would like to know how to get started with Forex.
  9. Hi, thank you for inquiring! Hedging in Forex is a move that you can take in order to protect your currency pair for the short term. Traders usually decide to use this option when they hear concerning news which may influence their currency pair in a negative way. There are two strategies that are most commonly employed when hedging. The first one is to hold a short and long position simultaneously on a currency pair you choose to protect. It is also called a perfect hedge because it eliminates all possible risks but eliminates profits as well. The second strategy is to deploy an imperfect hedge, which partially protects the selected currency pair, this partial protection is selected by the trader, and it can be upward and downward, protecting from changes when the currency pair moves down or up. It eliminates some of the risks and some of the profits.
  10. Hello, I would like to know about PIP component in Forex.
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