There’s no doubt that there is money to be made by trading in the foreign currency market. The trouble is that there is also money to be lost, so it’s important that new investors take their time learning how to trade so they don’t lose money. If you’ve heard success stories from forex traders and want to see what it’s all about, here are some ways you can learn more and practice your technique.
1. Sign up for a few brokers’ demo accounts. Many brokers have free demo accounts that you can sign up for and practice trades. As you trade, you’ll be able to see how much money you are making (or losing, as the case may be). This is a safe way to gain skill and confidence before you begin trading for real.
2. Follow the latest forex news. Some sites such as Alpari offer economic news that is mainly orientated toward FX traders. You’ll learn the latest trends and what to expect in the upcoming weeks as far as investments go. You can also learn vital strategies that can help you improve your market success.
3. Hang out in trader chat rooms. Many online brokers have a space where traders can chat with one another. This is another great place to spend your time. You can ask questions of those who have more experience, and they can share their strategies with you. You can also learn about others’ successes and failures.
4. Find a mentor. If you know someone who has experience with forex trading, why not take them out to lunch and ask some questions. That person may even be willing to mentor you until you learn more.
Forex trading can make people a lot of money, but it’s also riskier than other types of trading. Take your time learning about the market before you jump in and make your first real trade.
I just read a funny story about a man who tried to open up a bank account with a fake million dollar bill. Remember that there is no such thing as a real million dollar bill. The teller wouldn’t accept the bill and they called the sheriff on him and they arrested and charged him with disorderly conduct and forgery.
Word of advice: don’t open up a bank account with fake money.
8 “I know all the things you do, and I have opened a door for you that no one can close. You have little strength, yet you obeyed my word and did not deny me.
Revelation 3:8 (NLT)
8 “I know your works. See, I have set before you an open door, and no one can shut it; for you have a little strength, have kept My word, and have not denied My name.
Revelation 3:8 (NKJV)
It says in this wonderful verse that God is going open a door for you that no man can shut. It says that God knows and sees all the things that you do and have done in your life and that he is a rewarder to those who diligently seek Him. God is faithful. If you keep His word and don’t deny Him by giving Him everything you have, he will reward you openly. Open doors will begin to come before you and supernatural blessings will follow! It’s in His word!
You could read the entire stimulus bill (the American Recovery and Reinvestment Act of 2009) online at the Library of Congress that President Obama signed into law today. Or…you could just find out how it affects you right here on Christian Finance Blog!
First things first. You’ve probably heard that the new bill has a tax credit on your paycheck. It’s called the Make Work Pay credit and it’s worth 6.25% of any earned income in 2009. The max is $400 for singles making less than $75,000 and $800 for families with $150,000 or less combined income. It will be distributed through payroll for the last 26 weeks of the year. So it equates to about $15 a week for single filers who qualify for the $400. This will not come through your tax refund like the last stimulus. It also provides a one-time $250 payment for those who don’t work and retirees.
The next big tax credit in the new bill is the $8,000 New Homebuyer credit. This is different from the $7,500 new homebuyer “credit” that was supposed to be paid back over 15 years. The new $8,000 new homebuyer credit is a real tax credit, not an interest-free loan. It actually reduces your tax liability. Even if your tax bill is less than $8,000, you’ll get the difference back. If you overpaid your taxes throughout the year, you’ll get your regular refund plus the $8,000 extra! Sounds like a good deal to me!
So how do I qualify? You have to purchase a home between January 1, 2009 and November 30, 2009 and be a first-time homebuyer. To qualify to be a first-time homebuyer, you must not have owned a primary residence home within the last 3 years. It’s okay to have owned investment property or a vacation home as long as you didn’t live in it for most of the year. Also, you need to stay in the new home for 3 years to keep the tax credit. Income restrictions are the same as the Make Work Pay credit; $75,000 for singles and $150,000 for married filing jointly.
The next part of the bill that may affect you is the Car Buyer tax deduction. This is a tax deduction not a tax credit (which is more valuable). A tax deduction only reduces your income so it’s only worth the amount times your tax rate. The deduction allows you to deduct the state and local sales tax for any new car, truck, R.V., or motorcycle that was charged on the purchase during 2009. This won’t help you if your state doesn’t have a sales tax and it’s an above-the-line deduction so you don’t have to itemize to get the deduction. Income restrictions are $125,000 for single filers and $250,000 for joint filers.
Next up is the American Opportunity Tax Credit for 2009 and 2010. This tax credit increases the existing Hope Scholarship tax credit from $1,800 to $2,500. Income restrictions are $80,000 ($160,000 for married filing jointly). Partial credits are available to those making up to $90,000 ($180,000 filing jointly). Also related to this is the increase of the Pell Grant to $5,350 in 2009 and $5,550 in 2010.
For those of you who are unemployed, there’s also help for you in the bill. Cobra coverage (which allows the unemployed to keep health insurance from a previous employer) will be subsidized up to 65% of Cobra premiums for up to 9 months if you laid off between September 1, 2008 and December 31, 2009.
Unemployment benefits are also going to be increased by an additional 20 weeks (and 13 weeks more in certain states where unemployment is higher than 6%) and $25 additional weekly. Also, the first $2,400 is tax exempt in 2009 on your federal income taxes.
There are other portions of the stimulus bill like increased food stamp payments and deductions for energy efficient appliances and others. I may not agree with some of Obama’s policies but I’ll take free money any day! Bring it on Prez!
Full disclosure: I was given a complimentary copy of the book by the author. When I was contacted to review the book, I was immediately intrigued by the title. How I Managed $20,000,000,000.00 by Age 32 was an interesting and easy read. The main book is only about 154 pages and can be read in one sitting. The appendix takes up the rest of the 201 pages.
Mr. Slome definitely has had success at an early age. And his book shows that success doesn’t just come. It comes with hard work. He worked his way up to manage a $20 billion fund at American Century Investments.
Mr. Slome starts off the book by going over some life influences that shaped his thinking. Then he talks about the path that took him to where he is now including some mistakes that he made along the way. Other chapters talk about efficient market theory and his investment philosophy. He even has a chapter devoted to hedge funds along with a good explanation of them. He also talks about a typical day as the top portfolio manager for one of the largest mutual funds in the country.
The real nuggets in this book are the chapters about investment strategies, choosing an investment manager, and what to do with your own portfolio. Even his investment philosophy is something you can apply to your own investments.
If you’ve ever wondered what it’s like to run a large mutual fund or to get inside the head of a successful mutual fund manager, then this is the book to get! If you’re in the stage of your life where you’re focused on investing (and already out of debt), this book has some solid investment advice, as well as some good advice on choosing a financial advisor. If you don’t fit into those categories, this is not the book for you. If you are, I can wholeheartedly recommend this book! God bless!
Also, check out the rest of the virtual blog tour. Comment here for a chance to win a free copy of the book yourself (courtesy of the virtual blog tour)! Also, the author may drop by and answer any questions you might have!