The Reason Price Action Trading Is Done

By John Templeton

If you find yourself having a really difficult time grasping the intricacies of the forex market, then you are definitely not alone. There are tons of new and struggling traders out there. I know that if you surf around the internet enough, you will find hundreds of thousands of articles on forex trading. Its enough to give you a headache. I can certainly empathize because I remember going through the same thing when I first started.

It always feels like you are never getting the straight scoop. You always seem to get a guy to tell you that you should blast your charts with every indicator, and the only thing you have to do is trade them, and you'll be a millionaire.

Well, let me be the first one to tell you that using these generic indicators like stochastics or moving averages as your only basis for buying and selling a currency pair, you will not last long in this business. If you want to take the forex market serious, it is critical that you understand price action. Once you understand that, you understand how the market works. Because the basis of technical analysis is comprehending price action patterns.

These are some of the advantages of price action:

With price action, you actually get to see support and resistance areas. When I say this, I don't mean those generic indicators that supposedly put those s/r areas on these indicators. These areas cannot and will not be ever calculated by indicators.

You actually comprehend why the market moves the way that it does. When you use indicators, do you really have any idea of the underlying reasons why the market moves the way that it does.

You are able to predict vital turning points in the price. I can't begin to tell you how important this is. What's also great is that you can trade all kinds of time frames. You are not limited to being a short term or long term trader. It goes to show that price action is for everybody.

It also doesn't matter what kind of market you trade. You can trade stocks, forex, futures, derivatives, etc.... That's how universal it is. - 23217

About the Author:

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Understanding The Basics Of Forex Trading

By John Eather

Forex trading is an industry that supports hundreds of traders daily. What are their keys to success? This article will inform you of a few basic techniques of forex trading in a bullet point format. Keeping these suggestions at the front of your mind will assist you in seeing the "bigger picture" while considering your trades.

1. Trade in Pairs, Not with Currencies - It is similar to any relationship in day to day world. You need to know both the sides. Success or failure in this currency market depends on knowledge of both the currencies, not only one.

2. Read About Your Market - Any successful forex trader knows how important it is to be abreast of major global news and events. Sometimes, even rumors can have an affect on your trading. Knowing the difference between the real and perceived news of the day is one of the basics of forex trading.

3. Trading for small profits: Many a times new traders place very tight orders in order to take small profits. This is not a good approach as one may get profits in the short term but he is surely risking his earning for the long term. Because with tight trades it is not possible for you to recover the big difference between the bid and ask price.

4. Plan your strategy: Planning one's strategy is one of the important aspects of fx trading secrets. One needs to follow whichever strategy he decides. There is hundreds of different profit making strategies so one must choose any one of them whichever suits to your nature and try to stick to it. Most of the traders go for a fundamental analysis of the trade.

5. Business, Never Personal! (Stay Level Headed) - Forex trading, as with most business ventures, is a rational endeavor. If you are experiencing outside stresses or pressures unrelated to forex trading, you should consider taking that day off. Your pockets will thank you.

6.Read Your Technical Analysis - A well prepared analysis can contain key information on when to buy and sell the market. You can determine whether the market is long, short or over extended by paying attention to a technical analysis. Keep abreast of them.

7. Confidence Is The Key - Most failed forex trading stories come attached with signs of being underprepared or overmotivated, leading a lack of capital and, more importantly, confidence. Become familiar with the market and master the basics and you'll reinforce your success. You'd be surprise how much your confidence will rise when the profits start rolling in. - 23217

About the Author:

Before you start trading forex online, please check out John's fantastic ecourse and reports about Online Forex Trading. Get the latest info regarding trading forex online. Go to MoneyMakingFxTrader.com for more details.

Make Sure You Are Financially Prepared In An Emergency

By Dennis Snyder

A little planning now can help you handle a natural disaster or other emergency. With all the disaster that have hit over the last few years such as, hurricanes, tsunamis, earthquakes and other natural disaster many people have focused on their need to be prepared in case of an emergency.

Each and every one of us should be constantly preparing for the next financial emergency that will hit. We should have our financial papers in a safe place and accounts set up with emergency funds. Being financially prepared now can be the difference between security and crisis when it comes to our families and finances.

One of the first things to do in emergency preparation is to create an inventory of personal belongings of any value. This would include any financial and family papers and documents. Get them into a safe fire proof and water proof box and if you can store them with friends or family who do not reside in your area. By the way, make sure that you back up your computer files and get them on a CD for safe keeping.

Understand what types of losses your renters or homeowners insurance covers. Ask your insurance agent or financial planner about additional coverage for floods, earthquakes, home offices and big-ticket items. Keep copies of your policies in a safe place along with your other important papers.

I like to keep at least $500 in cash at home in a good hiding place where I can get to it quickly in case of a sudden emergency. Don't keep the money in large bills but it should be in small denominations for easier use.

I also like to keep a list of important phone numbers in my wallet and my wife's purse so that we can get in touch with our family members, doctors, insurance agents and even credit card people. With the high tech stuff most of us carry we can get this information logged into our cell phones as well.

The last but by no means the least make sure you have a funded emergency savings account. This account should be separate from any other account and contain enough money to cover at least three to six months of living expenses. This type of account will lift a heavy burden from your shoulders should an emergency occur.

Follow these guidelines to ensure you and your family are protected financially as well as physically. If you would like to learn more on how to gain control of your finances all the time then head on over to the report at Money Management Made Easy. - 23217

About the Author:

Yes, even you can Get control over your money simply click on this report Money Management Made Easy and learn the six steps for handling your money.

Tax Deferral as an Investment Strategy

By Don Burnham

Deferring taxes is the term which means that you get to pay your income tax later for some amount of money that you invest at present, it is an investment strategy. Deferring taxes is advantageous as you can make some money for investing at the present time.

For example, say you manage deducting $1000 from your taxable income in the current year and then you invest that amount into an account that gives you interest. As a result of this, you get to pay around $200 less in income tax for the current year. Therefore you are gaining $200 more as compared to if you hadn't invested the $1000. So if you add the deferred $200 to the already invested $1000, your investment adds up to $1200. The other kind of tax deferral that investors often opt for is deferring the amount of tax to be paid for interest earned. The invested amount is taxed, but the interest earned becomes free of tax.

Another type of tax deferral used by investors is the deferment of taxes paid on interest earned. The dollars invested have already been taxed, but any interest earned is tax free.

The tax deferred accounts that you may create will protect your money from being taxed until you start withdrawing money at a time when you are entitled to pay less tax. The Investment vehicle that suits you therefore depends on your current situation.

One available plan is the 401 (k). This vehicle is available only through employers who offer the plan. It allows you to make tax-deductible contributions that grow tax deferred until you withdraw them. Depending on your particular plan, your 401(k) plan may come with a bonus. Some employers match your contributions. You could make 25%-100% on your money instantly if your employer offers matching funds.

By using the 401(k) planning, you could add more to your retirement plan, than most other plans. You can add around $9,500 to your retirement plan, and your employer can add another $30,000 every year. You can also add the yearly bonuses that you receive to this plan to help your retirement money grow even faster. If you leave your job or wish for more freedom with your money, you can always roll your assets over into an IRA account.

A 401 (K) may work for a beginner at investing, someone who does not know how to invest in stocks or which are the best stocks to invest in.

Another type of plan offered by an employer is the 403 (b). This plan is for public school and non-profit organization employees and it is tax deductible and tax deferred. You can contribute up to $9,500 of your annual gross income each year to this plan.

With 403 (b) plans, beware of a few cautions. Your contributions are generally invested in a tax-sheltered annuity, which may have heavy sales charges and low guaranteed rates.

Any person who has an earned income or the spouse of somebody who has an earned income can open their own IRA and add up to $2000 to it yearly. The earnings are not subjected to tax unless you start withdrawing from the account, but you will be charged penalty if you start withdrawing before the age of 59 and a half. However, even if your money is not tax deductible, they will be tax deferred.

There are different kinds of investment that you could make with your IRA, but that depends on the custodian. However it is with the IRA that you will have most options compared to the other employer sponsored schemes.

The Keough Plan is another such plan that is available for people who are self employed or who work for businesses that are unincorporated. Under this plan, you get to contribute up to 25% of your income every year with a maximum of up to $30,000. You can contribute most with this plan than any other IRA plan, and all your earnings become tax deductible and tax deferred. There are options to choose from in this plan, that is, you could choose to pay according to a fixed percentage every year or a variable percentage or a fixed amount. A lawyer should be best able to guide you in what suits you the best.

A SEP, or a Simplified Employee Plan is easier to set up than a Keough allows you to deduct 15% of your self-employment income, to a maximum of $30,000. As an employee, you can contribute up to $7000 per year to your SEP, and your employer can contribute the rest. SEP plans are only available to companies with 25 or fewer employees, and at least half of those employees must participate in the plan.

All of these investment vehicles fall into one of two categories : qualified plans or non-qualified plans.

The 401 (k) and 403 (b) plans are qualified plans. Qualified plans are employer-sponsored plans that provide good benefits but that are restricted to the types of investment options offered by the employer. As we already mentioned, 403 (b) plans often require you to invest your money in tax sheltered annuities. 401 (k) plans generally offer a broader range of conventional investment options, but still seem very limited when compared to non-qualified plans. You usually get to select from a preset choice of investment options such as fixed interest annuities, money market funds, stock in your company, and other traditional investments.

The second category of retirement plans is nonqualified plans. Nonqualified plans generally allow more freedom as to when, or if, a contribution has to be made, and they also offer more latitude in the type of investments that can be made. All IRAs fall into this category. Generally, investors have more control over their investments in a nonqualified plan than with a qualified one. Usually they are easier to work with, have less regulation, and require less reporting. Often, contributions to these plans can be deducted as a business expense.

Most investments made with the vehicles we have been discussing fall into one of two asset categories: The first is debt and the second is equity. As an investor, you are either an owner or a creditor. Equity owners are entitled to all free cash flows that exceed the debt payment obligations of the underlying economic entity. Creditors receive priority in agreed-upon future interest and principal payments.

When you opt for a certain retirement plan, you ought to be sure of the investments that are permissible with it. Try to not open an account that will not give you the freedom to select the kind of investment plan that you want, whether they are debt or equity investment plans. - 23217

About the Author:

Do you want to defer taxes on your income with an investment strategy then, here is the website http://www.weknowthewayback.com of Don Burnham who is an entrepreneur, author, real estate investor, teacher and speaker.

Dividends

By Wolfgang Vanguard

Dividends are payments from shares, unit and investment trusts, which, investors hope, are not only regular (usually twice a year) but also rise over time to reflect the companys (or trusts) growing fortunes. Dividends are taxable as income.

The good news is tax on UK share dividends is deducted before you get it. If you are a basic rate taxpayer, you dont have to do anything else. Nontaxpayers and ten per cent taxpayers dont need to do anything either. But theres bad news here: You cant reclaim the deducted tax under any circumstances. Even though its called a tax credit by HMRC, we refer to it as a deduction to save confusion.

Top-rate taxpayers have to declare dividends on their self-assessment form and have the cash ready to pay the gap between the 40 per cent rate and the tax deducted.

Whether you get income from unit trusts, investment trusts, or individual shares, look at the date the dividend was declared and ignore the period for which the dividend applied. A 10p a share dividend for the year ending 31 December 2006 declared on 1 May 2007 and paid on 1 June 2007 counts as part of your 2007 " 08 return, not the 2006"07 calculation.

If you invest for long-term growth in shares that pay low or no dividends, youll pay less income tax. But dont forget these shares tend to be riskier. And you can get hit for capital gains tax on your profits.

Dont forget if you are near the top of the basic rate ladder " earning around $36,000 a year " your dividends can push you into the top tax bracket. For instance, if you earn $36,500 and have $3,500 of dividends youll be over the $39,825 (in 2007"08) basic rate tax limit for a person aged under 65.

Dividends from stocks traded in foreign markets can be tough to deal with. You may have to convert dividend payments into sterling as well as account for them separately.

You need to fill out the foreign income pages of the self assessment form. The UK has double taxation agreements with most foreign countries. The effect of these agreements is to cap the tax due on foreign-sourced income so you are no worse off as a result of possibly being taxed twice.

Many stock market companies have schemes by which shareholders can opt to receive new shares to the value of their dividends rather a dividend cheque. Even if you choose this option, you still have to declare the value of the new shares and any balance carried forward in cash because it is not large enough to buy a share. Youre liable for tax on re-invested dividends in just the same way as a cash dividend. - 23217

About the Author:

Learn How to Invest Today from the basics to advance. Find financial freedom from debit and other money worries by learn how to invest and learning to control your money.