A:  Forex Losses are capital losses, similar to stock losses I believe.
This means the rule is that if you have no other losses and no other stock profits of any kind, the limit is $4,000 you can deduct against your salary (ordinary income).
If you do have stock gains that you would have to pay tax on, you can deduct your Forex losses against those gains before you are entitled to the $4,000 deduction. So lets say you made $3,000 in stock gains. And lost $8,000 in Forex (hypothetical). (Then $3,000 would offset the stock gains, then another $4,000 would go against income, and the last $1,000 you would not be able to deduct this year – you’d have to use it to offset stock gains or Forex gains in a guture year)
If you have other stock losses, then you have to include those as part of the $4,000 deduction. So if you had $3,000 in stock losses, you can only deduct up to $1,000 from Forex losses if you have $1,000 or more in Forex losses to claim.
Lastly, if you do exceed the limit, you can carry the losses forward forever if you are not a corporation. But until you get gains in future years, you can’t use out the losses from this year as a tax reduction.
If you earned less than $4,000 of income this past year, then it gets even more complicated. You can never deduct more than you have.

A:  Any registered Brokerage has good Forex People.
That means they are not going to Scam you.
But it doesn’t alter the fact, that Forex is an extremely risky investment vehicle, and it takes, lots of knowledge and access to instant quotes to have a chance of making steady returns.
If you are not an extremely knowledgeable person in all forms of investing……STAY OUT OF FOREX
A responsible broker wouldn’t allow you to trade.

A:  Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words “Forex” and “lose” to see this is the consensus.
Forex is what we call a “zero sum” game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the “bets” in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty.
I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.

A fundamental analysis uses economic and political factors, such as unemployment rates, interest rates, or inflation, as a means of predicting currency movements. Fundamental analysis is concerned with the reasons or causes for currency movements.

A technical analysis uses historical data as a means of predicting currency movements. The technical analyst believes that history repeats itself over and over again. Technical analysis is not concerned with the reasons for currency movements (for example, interest rates or inflation). Instead, it believes that historical currency movements are a clear indication of future ones.

Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. However, the important point to remember here is that no one strategy or combination of strategies is 100% certain.

As with stocks and mutual funds, there is risk in Forex trading. The risk results from fluctuations in the currency exchange market. Investments with a low level of risk (for example, long-term government bonds) often have a low return. Investments with a higher level of risk (for example, Forex trading) can have a higher return.

To achieve your short-term and long-term financial goals, you need to balance security and risk to the comfort level that works best for you.

Article Source: http://www.EzineArticles.com

First,Forex market is the largest trading market in the world. It yields an average turnover of $1.9 trillion daily and the figure is nearly 30 times larger than the total volume of equity trades in United States. Forex trading is very unique as the trades are done between two counterparts via electronic network or telephone connections.

 There is no centralized location as stocks or futures markets and trades are done around the clock. Everyday Forex trade begins when the financial centers in Sydney start their day, and moves around the globe to Tokyo, London, and then New York. Traders can always response to the market regardless of the local time.

Although Forex trading involves such a big volume of trades nowadays, it is not made available for the publics until year 1998. In the past, the Forex market was not offered to small speculators or individual traders due to the large minimum business sizes and extremely strict financial requirements. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the currency exchange market’s extraordinary liquidity and strong trending nature of world’s main currency exchange rates. Only until the late 90s, Forex brokers are allowed to break huge sized inter-bank units into smaller units and offer these units to individual traders like you and me.

Nowadays with the rapid growth of Internet and communications technology, Forex trading has become one of the hottest make-money-at-home-businesses for those who wish to avoid conventional 9-5 day job.

As a fact in Forex trading, Forex is mainly traded in large international bank. According to Wall Street Journal Europe, 73% of the trade volume is covered by the major ten. Deutsche Bank, topping the table, had covered 17% of the total currency trades; followed by UBS in the second and Citi Group in third; taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, J. P. Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For market participants segment, approximately half of the transactions done were strictly between dealers (i.e. Bank, or large currency dealer); others are mainly between dealer and non financial institutions.

End,Remember to always trade with proper investment plan and strategy. Read books, attend courses, watch video seminars, read papers, or even practice first with a dealer’s demo account to get yourself ready.

Article Source:  http://www.ezinearticles.com

That origin says the exchange cover problem more definite in now available international economy pattern, is the economic pattern unbalance between China and USA. The possibility that the turn up ultimacy changes at present most probably although this the whole world financial crisis having shaken this one pattern to a certain extent,is as trifling as it is. As for USA aspect, the crisis urges USA to defend centering on U. S. dollar international currency system without sparing any effort , the consumption that the supremacy is propped up by U. S. dollar deposits the structure unbalance and the industrial set-ups unbalance to be difficult to become worse; As for Chinese aspect, China has decided the short-term inner in position and economy characteristic in international division of labor expanding domestic demand , the difficulty compressing the foreign trade surplus , improving balance of payments’s has been bigger. Under background, a common view is here: In the upcoming several years, Chinese exchange cover will still display the trend of  rising. The increase of exchange cover swift and violent had once made macro-economic policy be coming out at the elbows in 2007 , this one act, had still been still fresh in memory so far in people’s mind , feasible developed country of epicycle financial crisis economy had suffered a heavy blow , had been the emerging market country but commonly, though China being able to not comply with this crisis middle the whole body but have been withdrawn from , degree has been stricken but being going to be so small that economy keeps much, also as before being increasing by relatively comparatively quickly. Then, the Chinese marketplace attraction comparing with in 2007 , today to international capital also needs much bigger. Then, style has not changed , U.S. dollar devaluation pressure enlarges unceasingly in USA quantity monetary policy loose and comfortable, the exchange cover moment frontage shrinks the rational strategy how to be in progress to gradually ample exchange cover is arranged for under the risk background, is  becoming one big difficult problems swaying before China.

That foreign currency stores structure’s is clearly unreasonable:in today’s foreign exchange reserve,USA government debt has accounted for 40% about ,in May China has once increased the USA government debt having held 38 billion U. S. dollar , USA huge sum budgetary deficit has aggravated in current exchange cover, inflation and the U.S. dollar devaluation risk, this the exchange cover structure being able to be used giving first place to U. S. dollar assets is confronted with the layer-upon-ayer ordeal. But, another aspect , subtraction hold difficulty been confronted with by U. S. dollar assets being also as plain as the nose on one’s face: And and but the USA government debt that first, China holds takes up USA government debt all quantity specific gravity but 6.8%, take up foreign to hold the USA government debt total 24.3% but, USA government debt has exceeded 1/3 in portion in our country exchange cover, to have exceeded GDP 1/6, significance that U. S. dollar assets stores it serves to show to Chinese foreign currency.Based middle gold company chief The Economists ha succeeds the inscription introduction , hold US government debt held by 10% if China cuts , is OK to initiate whose price falling greatly, that 90% government debt assets value that we are left over with so can’t will the maximal necessity being shrunk , being lost prompt is China self. Secondly, many scholars has brought forward USA government debt succedaneum , Bi Ru gold , petroleum, but one , these product marketplace capacities have been less , has been the same as a cup of water for putting out a cartload of fuel on fire to ample exchange cover Er Yan ; And it’s two, keeps difficulty in a storehouse , business is inconvenient , cost is higher, be confronted with the natural losses problem; It’s three, complies with in history , the commodity price fluctuation such as gold , petroleum leads fluctuations in prices over higher than USA bond , is difficult to satisfy exchange cover value stability call for. Then, continue increasing the natural selection holding USA government debt is  being  the China government’s unique  choice.

Speak easily, the so-called unnecessary transaction means the transaction has no value.It has the nature distinction from  the professional transactions, so the possibility of its loss-making  will be much greater than the professional transaction. On the surface, the necessary transaction is also a kind of speculations, but is not the case. Really speculations are investment opportunities, in order to make the traders be happy through the largest profit . And unnecessary transaction is using  money to “play” the game of forex in essence, it is a pure consumption of money, it runs counter to the goal of profit, and the results are often “got burnt from playing fire.”

So, why are there so many people doing a similar deal? The fundamental reason is the strong desire of profit. Driven by the this desire, many investors focus only on profits deliberately ignored the existence of risk. But objectively,because trading opportunities and prifit can not judge, resulting in the inevitability of the existence of a risk, that is to say there must be risk at any time of the transaction. Therefore, as long as investors realize the uncertainty of the profit and the inevitability of risk a large extent,they can reduce unnecessary transactions at a large extent. However, reducing unnecessary transactions does not mean that non-trade transactions, it does not mean reducing the number of transactions. Appropriate transaction is an important means to keep in touch with the market.

Many traders may produce the wrong expectations of the trading profit at the outset, and failed to obey the rules of the transaction. An amateur staff can not be equal to the work of short-term forex transaction,and it is a shortcut to get rich quickly. While compared with traditional markets (such as stocks and futures, etc.), foreign exchange transactions are even more strange and difficult to grasp, but that does not mean that the financial rules and universal laws of logic which we have been pursuing is not applicable any longer. As we know, a huge return on investment is often accompanied by extraordinary investment risk,in the forex transactions, which means highly volatile trading performance, which is usually resulted in significant losses. forex trading will not be easy (otherwise everyone can easily become a millionaire), and many traders who have years of experience at a certain time period will suffer losses. everyone must realize that the master of the forex transaction will be a long process, and there is no shortcut to success in one night.

Stop-loss happens naturally in theC process, is not deliberately making,it is an instinctive reaction that investors protect themselves, the market’s uncertainty created the importance and the necessity of the existence of the stop-loss. Successful investors may have different ways of trading, but stop-loss is their common features of the protection of the success.The world great investmentor Soros said that the investment has no risk, only the investment which is out of control has risk. Learn to stop, but you should never fall in love and loss. Stop-loss is more important than profit, because any time a capital preservation is the first and profit is the second place, the establishment of the principle of reasonable stop-loss has been effective,the center of the principle of prudent stop-loss is stopping the loss from expanding.