Im 17 and i have been reading a while and demo trading for 2 months. blew like 5 accounts. But i think i finaly got a good stragety, During new years i started a new demo account with $250 on it. Right know im at $900. Im thinking of starting to trade when i turn 18 which is in june and i have a few question.
1: How much would i have to pay taxes and how will i have to file them.
2: I will probably open a $ 500 micro account with liteforex, good idea or not. and are they regulated. Do they report to irs.
3: Is demo account the same as a real account. I mean margins and everything else.
idk how much you have to pay but i think you need to file it as income tax i believe. idk for sure i just turned 19 and i know you can just hire someone to do your taxes for you including forex.
2)depends how much youd care to lose. if 500$ isnt much to you then go for it. personally id reccomend starting with 20$ to get the feel of it and as you get better and it becomes easier you can add money to the account. as for the broker i have no idea
yes it is the same as margins as for “everything else” no they are not at all. well, everything you see is the same, but emotions in trading will be way different when your risking your own money thats why its best to start small and add as you do better before just risking loads of money. it should not be such a small amount that you do not care to lose it but it shouldnt be too much that youd be completely distraught if you were to lose it, its all relative, if your a millionaire then im sure youd have no problem risking 10k, if you a broke college student maybe like 100$?. but as far as i know of everything such as margins are exactly the same
hope that info helped and dont go risking more money then youd like to lose
I am a new trader as well. And I had the same questions a few months ago. From my understanding,
I think it depends on how many you can afford to lose. But too few will make money management hard to implement. My suggestion is to open a FxOpen microaccount which 1 pip maps to 1 cent. (Or some other broker provide you the same small lot), so you can put least money for your startup.
I think two different points:
(1) psychology is different. You will lose your real money which is not just a number
(2) the broker’s system behave a little different when big new release (they may freeze the system/extend the bid/ask ratio/slowly process your order and etc) and some bad broker may make some stop hunting when you are sleep. If you feel intested in this area, you can go to see the book which name something like “beat the forex dealer”.
and i know you can just hire someone to do your taxes for you including forex.