Sorry, M_m, but I am not qualified to try and answer this. The fact that someone has been around the block a few times does not automatically mean they are capable of answering any situation!
I have never personally traded like this and, thankfully, I have never been in the position described which, in my opinion, has nothing to do with trading at all. I do not just stack my losing positions on the shelf and leave them there for years just hoping that one day they will “come right” - except for one week per year when I get them down off the shelf, dust them off, and decide which ones to ditch purely for account window dressing for tax purposes.
The only approach here that, by its nature, would match that kind of “trading method” that created this situation would be to indiscriminately close any trades up to the amount of losses needed to be realised for tax purposes and then reset the same trades in the New Year, put them back on the shelf, and then carry on as normal…just an end-of-year procedure
Actually, you may have missed one thing… I am awaiting an answer from my accountant on the carryover affect of losses. It my memory serves me correctly, I should be able to carry losses over from this year into the future. However, I am awaiting more details.on how much and for how long etc.
I may in fact take a fair-sized loss rather than simply break even. You have to remember that your taxable forex income (I hesitate to call it capital gains although it may very well be the same in most countries) and at least in Canada is solely based on the trades you have closed and has nothing to do with your open trades. How one handles that scenario is just another way to earn or lose money. For traders like myself who often operate with a deficit, just because you have closed trades and made good profit doesn’t mean you will have any real profit to show for it.
If I were to claim 90k in forex for 2018, I would end up paying tax on 45k of that amount. I like my future better by doing a little portfolio housecleaning, not paying tax and even having a tax credit for next year, and having even more funds available for trading or using them for other investments.
As far as my trading practice goes, if you have the financial backing and are not in a hurry to reach your goal, there is absolutely nothing wrong with keeping trades long term. The key is making the right trades that have potential. I am in this to make money and reach a goal.
For me it is a marathon rather than a sprint or even a race.
You can do the same in the stock market and the results might be similar.
I would prefer to break even or maybe take a loss on the books and set myself up for a big year coming up. it is definitely on the horizon.
If anyone can express their thoughts on the future of the USDCAD that would be something I would like to hear about! Liquidating some or all of my account depends on it!
Also, I don’t need the JPY to rise vs the USD and stay that way for a long long time. I just need a major surge, even for a short time!
When I look back at this post and wonder how much money I could have made had I left these trades open till now! As USDCAD has been over 1.36 lately, I would have made a huge sum of $$$. $500 per trade would have seemed minuscule!!! Gor more info., go to my May 15 post entitled ‘USDCAD, had to be patient’.
We can all cherry pick… I’d stick to your 10 lot trades… you’ll lose less money…
“Right now 3 floating trade, one is -600 pips, -300 and -200 something, total around -1200 pips, with total gain from january 2018 till now is 4600 pips.”
Oh don’t get me wrong, it’s a great system to use for a newbie. Open a trade at a fixed time every day for no reason and see how it turns out. Sounds very well thought out, propper stuff that…
You have an account with $900k, and it’s a real live account according to your first post. And now the outcome of your USDCAD positions is at the mercy of what info you can ruffle up here in this forum?
Doesn’t make any sense to me - i’ve seen it all this year now.
I think you’ll find he is Canadian - trading in USD - so it is Not the two little positions he is concerned about, but the real exchange rate to get his money back into CAD
Falstaff hit it on the head! I watch the USDCAD like everyone else but with intense interest. I am looking for the best possible time to selloff and take the cake! Have been for a long time now.
I find myself in a pretty good spot but it’s taken several years to get here. It’s been a roller coaster but I’m finally in a really good position.
If USDJPY drops below 100, my equity will go way up in a hurry. The good thing about my situation is that the USDJPY pair is expected to drop in 2019. And if you look closely at the charts, in recent weeks, when the USDJPY has been going down, the USDCAD has been going up. For me, this is the perfect combination! It seems at times the opposite also holds true (which is not good). The potential for the USD to gain even more strength against the CAD while at the same time the yen is repatriated and becomes a lot stronger is real. Oil, a world tragedy, and other potential influences will likely help me out in this regard. One would think that a strong USD might be strong vs. JPY and CAD. However, this doesn’t seem to the case. The fact that there is some contradiction in those 2 pairs may also give me a little more sense of security.
Having a free margin of just under $600k and a margin level of over $3210 at the moment is really great. While I type this post, I see the rise in the north surge of the USDJPY but it will only give me more trading opportunities! Just opened 6 USDJPY shorts at 1.0 each. I will treat these as short-term trades and take profit soon enough due to the swap rates at present. The stock market won’t impact this pair for long. You’ll see… It spiked and now it’s on the downswing. What goes up must come down! Most of the time at least!
Yikes, it’s a strong northbound candle! I should have waited it out longer before jumping in… I am still not worried, I have been in this situation before!
I had to wait until today and could have made more. I ended up closing 2 for tiny gains and had the others set to TPs for a bit more. Back to where I was before I opened those trades yesterday!!!
You talk a lot but I’m afraid you’re not getting any wiser…you haven’t a clue about risk management and eventually you will run this account into the ground…now if you didn’t know this basic fx tidbit you can simply email your broker and ask to make your account “swap free” they have to do it no questions asked, which means no swaps charged nor paid … show us a screen capture of your account after you’ve done so with swaps column showing 0 and we’ll believe you it’s a real account cheers!
Hey Pauly,
I ain’t gonna run any account in the ground and you obviously don’t have much knowledge if you think that’s possible with a margin level of well over 3200%! If I were going to run it into the ground I would have done so a long long time ago! Just because I have gone heavy on one or two pairs doesn’t mean I have no risk management! Besides, you haven’t seen my trade history since 2010! I currently have 18.5 lots running and would have to lose $600k before I run out of money! Sorry, but it ain’t gonna happen anytime soon!
As far as swap free accounts go, I will pass, thanks. I am not claiming to be Islamic, nor do I follow Shariah Law. But if it were offered with no strings attached, I might consider looking at it!
I could close every trade I have right now and I’d have earned a nice chunk of $$ since I opened the account. Of course, that is in addition to switching over from USD to CAD so I can quickly add another 36% to my equity!
Sorry Pauly, but I’m afraid you’re way off base. But I would love to see your account!
Nothing like closing a few trades and taking a loss of over $130k in less than 2 minutes! As they say, a man’s gotta do what a man’s gotta do! My account suddenly went from $919k to $788K! The good thing is that my equity stays the same and my margin and margin level have gone way up. I may not be done. I am considering dumping another trade worth -$21k tomorrow before the market closes. Just a little housecleaning before year end!
Wishing you a great year ahead. Each time we trade in this market, we are moving towards more potentials to earn money. However, each time a trader tries to take decisions he must give complete emphasize on all important aspects of trading. A trader should try to work with proper trading strategy that can help him to obtain his trading purposes.
