Forex from scratch --a helping hand from pipshower...

[pipshower]

Re: A word of caution!

Well Done... :clap:

I hope you managed a FEW Hundred Pips & $$s in that move

Happy Trading

I closed half position [worth total 500 pips including 3 pairs] and have half running with stop loss moved to +50 on each [which makes +150 locked in]it .
I am looking for rather a good run as technicals show rather a potential to go to previous low or to form a new low.
Now with the First quarter earning data results will be coming out i am expecting a bear journey all the way ...The only thing that can stop this is the govt manipulation either by some unexpected decision like USA coming with rule to ban short selling on DOW which has its effects on currencies specially JPY and USD or by pouring in there own money in to market opening longs for manipulation .
Even if i am stopped out for the locked in pips i would be happy still..!


Regards
Pipshower

 

[ag_fx]

Re: A word of caution!

I closed half position [worth total 500 pips including 3 pairs] and have half running with stop loss moved to +50 on each [which makes +150 locked in]it .
I am looking for rather a good run as technicals show rather a potential to go to previous low or to form a new low.
Now with the First quarter earning data results will be coming out i am expecting a bear journey all the way ...The only thing that can stop this is the govt manipulation either by some unexpected decision like USA coming with rule to ban short selling on DOW which has its effects on currencies specially JPY and USD or by pouring in there own money in to market opening longs for manipulation .
Even if i am stopped out for the locked in pips i would be happy still..!


Regards
Pipshower

WOuld u please post the set up according to which u saw a down move? AS in what were the charts showing to u wen u posted a down move is on the cards?

Happy Trading

 

[avinashtiwari22]

Re: A word of caution!

Hello Avinash,

You are welcome to ask questions.
1] My main broker is Oanda .

2]I trade daily or weekly close of the candle or bar . The daily close of brokers vary. I basically analyse charts every weekly close for potential levels and put an alarm so whenever the price reaches that level i get alarm or else i put price based orders with SL AND TP around those weekly regions and keep checking whenever i get time .Though currently i am trading full time so i can actually watch and if like can trade H4 charts too. Wont be same situation from next month as my offline projects and plans will launch starting May so then i will be back on track with weekly and daily only .And so i am more comfortable with daily and weekly as they give me hassle free pips with a lot of free time on hand to do other works i like.
For charting i use other brokers MT4 as oanda charting isnt as good as MT4.

3]About tax you will need to consult your tax advisor .These legal matters are better be handled by the TAX advisor he will dig up and tell you all the necessary details of it!

Regards
Pipshower

Thanks For your kind reply.

Avinash:clapping:

 

[pipshower]

Legality of forex trading in india...

Thanks For your kind reply.

Avinash:clapping:

You are welcome .

IMPORTANT NOTE:

THIS IS ABOUT LEGALITY OF FOREX TRADING IN INDIA

I had been searching for this question being answered for quite a long time now.
I did talk with bank managers and many persons involved in forex trading.
I read everything that is mentioned here .
Go and read here first
http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

http://exim.indiamart.com/act-regulations/fema-2000-ii.html


And then i had a talk with a forex trader who has a great success in trading forex . SO AFTER I WENT THROUGH ALL THE DISCUSSIONS I HAVE REACHED THE POINT THAT INDIVIDUAL TRADER CANT TRADE FOREX IN INDIA , NOT WITHOUT A PRIOR APPROVAL OF THE RBI AND NOT WITHOUT AN ACCOUNT WITH AUTHORISED DEALER IN INDIA WHICH THERE UPON REQUIRES THE REASON OF OPENING AN ACCOUNT WITH THEM WHICH THEN GOES THROUGH THE RBI VERIFICATION .

SO I AM QUITING TRADING FOREX ON MY ACCOUNT .[AND THE EARNINGS I HAVE WITH THAT WHICH I HAVE NEVER WITHDRAWEN WILL BE USED FOR SOMETHING ELSE ONLINE AS THAT ALL IS STAYING IN MY PAYPAL ACCOUNT]
AND AFTER CONSULTING WITH FEW EXPERIENCED TRADERS I AM GOING TO WORK AS A CONSULTANT ONLINE PROVIDING FOREX COACHING AND SIGNALS AND SO ON AS THEN THAT INCOME WOULD BE CALCULATED AS CONSULTANCY AND WILL BE SHOWN IN INCOME TAX AS SUCH ..
WHICH MAKES IT LEGAL AND UNDER THE RULES OF INDIAN GOVERNMENT.

This is what i have as a final opinion to my own question of legality of trading forex in India. And i would love to be stay as legal and under jurisdaction of the indian govt.
This would remain so untill the further changes govt makes in its rules.

Thank you everyone!

NOTE: This is my opinion and is gathered from various sources both online and offline , so its entirely from my assesment of the things about legal issue of whether to trade forex or not by indian residents . So I am in no way responsible for the decisions you take based on this information posted by me as it could be wrong. Kindly note this point.
Regards
Pipshower:thumb:

 

[vicky_ag]

Re: Legality of forex trading in india...

You are welcome .

IMPORTANT NOTE:

THIS IS ABOUT LEGALITY OF FOREX TRADING IN INDIA

I had been searching for this question being answered for quite a long time now.
I did talk with bank managers and many persons involved in forex trading.
I read everything that is mentioned here .
Go and read here first
http://www.rbi.org.in/scripts/FAQView.aspx?Id=53

http://exim.indiamart.com/act-regulations/fema-2000-ii.html


And then i had a talk with a forex trader who has a great success in trading forex . SO AFTER I WENT THROUGH ALL THE DISCUSSIONS I HAVE REACHED THE POINT THAT INDIVIDUAL TRADER CANT TRADE FOREX IN INDIA , NOT WITHOUT A PRIOR APPROVAL OF THE RBI AND NOT WITHOUT AN ACCOUNT WITH AUTHORISED DEALER IN INDIA WHICH THERE UPON REQUIRES THE REASON OF OPENING AN ACCOUNT WITH THEM WHICH THEN GOES THROUGH THE RBI VERIFICATION .

SO I AM QUITING TRADING FOREX ON MY ACCOUNT .[AND THE EARNINGS I HAVE WITH THAT WHICH I HAVE NEVER WITHDRAWEN WILL BE USED FOR SOMETHING ELSE ONLINE AS THAT ALL IS STAYING IN MY PAYPAL ACCOUNT]
AND AFTER CONSULTING WITH FEW EXPERIENCED TRADERS I AM GOING TO WORK AS A CONSULTANT ONLINE PROVIDING FOREX COACHING AND SIGNALS AND SO ON AS THEN THAT INCOME WOULD BE CALCULATED AS CONSULTANCY AND WILL BE SHOWN IN INCOME TAX AS SUCH ..
WHICH MAKES IT LEGAL AND UNDER THE RULES OF INDIAN GOVERNMENT.

This is what i have as a final opinion to my own question of legality of trading forex in India. And i would love to be stay as legal and under jurisdaction of the indian govt.
This would remain so untill the further changes govt makes in its rules.

Thank you everyone!

Regards
Pipshower:thumb:

The two rules you quote are very vague on forex trading. They talk about INR to foreign currency remittance and vice a versa. This has been done to deny people trying to manipulate INR to their favor. I mean, if all IT companies and exporters have their way they could just pull INR farther away to make more INR from their fixed forex deposits.

So, basically,you could just deposit the money abroad as an investment($100,000 limit) and trade forex. But, at any given point of time dont even think about trading INR pairs. (Even if you did, it wont matter, check the OandA charts for INR pairs to see what I mean). And yes there is a limit to yearly forex you can get to your account($200,000 or so, not sure) which must not be violated at any point of time. Your bank might be kind of enough to report you to RBI.

This is the reason I never cross $1000 a month line even if with use of leverage and smart MM could give me huge returns. (My method allows me 2400-2600 pips monthly).
I have been keeping my books with all my trades to apply for a job as a banker at one of the foreign Banks.

 

[pipshower]

Re: Legality of forex trading in india...

The two rules you quote are very vague on forex trading. They talk about INR to foreign currency remittance and vice a versa. This has been done to deny people trying to manipulate INR to their favor. I mean, if all IT companies and exporters have their way they could just pull INR farther away to make more INR from their fixed forex deposits.

So, basically,you could just deposit the money abroad as an investment($100,000 limit) and trade forex. But, at any given point of time dont even think about trading INR pairs. (Even if you did, it wont matter, check the OandA charts for INR pairs to see what I mean). And yes there is a limit to yearly forex you can get to your account($200,000 or so, not sure) which must not be violated at any point of time. Your bank might be kind of enough to report you to RBI.

This is the reason I never cross $1000 a month line even if with use of leverage and smart MM could give me huge returns. (My method allows me 2400-2600 pips monthly).
I have been keeping my books with all my trades to apply for a job as a banker at one of the foreign Banks.

I know what you mean by the manipulation of INR but for your kind information the rules are separate for companies and individuals .
Kindly go through the details of the rules for individuals who are residents of India.
Credit card uses online is limited for buying and selling of ebooks or tickets or some given info.
Using credit card for depositing in forex accounts put you under scrutiny since you are exchanging INR to USD while the deposit process takes place.This is strictly prohibited.[NOTE: I have seen many indians using CC for forex account deposits but they say they never had problems .But the problems may arise even if a single complaint goes or banks decide to check the transactions and report to RBI . This is serious punishable offence.]
About remittance rule ,
Its clearly mentioned that the remittance is only applicable if you inherit the cash or property from the person staying in other country or when you had been staying outside India you owned the property or cash .
Even for remittance you need to have an account with authorised dealer bank in India where every transaction is scrutinised as per RBI rules by Authorised dealer banks.

This is as per the rules which are subjected to change in the coming years .

Thank you
Regards
Pipshower

NOTE: This is my opinion and is gathered from various sources both online and offline , so its entirely from my assesment of the things about legal issue of whether to trade forex or not by indian residents . So I am in no way responsible for the decisions you take based on this information posted by me as it could be wrong. Kindly note this point.

 

[vicky_ag]

Re: Legality of forex trading in india...

I know what you mean by the manipulation of INR but for your kind information the rules are separate for companies and individuals .
Kindly go through the details of the rules for individuals who are residents of India.
Credit card uses online is limited for buying and selling of ebooks or tickets or some given info.
Using credit card for depositing in forex accounts put you under scrutiny since you are exchanging INR to USD while the deposit process takes place.This is strictly prohibited.[NOTE: I have seen many indians using CC for forex account deposits but they say they never had problems .But the problems may arise even if a single complaint goes or banks decide to check the transactions and report to RBI . This is serious punishable offence.]
About remittance rule ,
Its clearly mentioned that the remittance is only applicable if you inherit the cash or property from the person staying in other country or when you had been staying outside India you owned the property or cash .
Even for remittance you need to have an account with authorised dealer bank in India where every transaction is scrutinised as per RBI rules by Authorised dealer banks.

This is as per the rules which are subjected to change in the coming years .

Thank you
Regards
Pipshower

Well pipshower, thanks for giving me that info so kindly but then let us for a moment think of ppl trading off NASDAQ or DOW Jones, if they transfer $100, 000 to US they might also land in trouble. I mean, they would if they follow what you said(dont transfer money abroad for capital purposes), right. But then, you have numerous articles who hailed RBI when they raised the limit from $50k to $100k for investment. There are many articles online on that particular topic.

To top it off RBI would want ppl in India to not make money abroad as it would then violate the max monetary limit, wont it? That would also mean trouble.

Coming to point on transactions, did you know CC is one of the pillars on which IT collections are based, so they are utterly traceable and can be checked. Also, no bank would tolerate any kind of illegal activity(it is coming from a guy who has worked with one), they have special monitoring system and once you break any rule they will report you the Central banking agency, make no mistake about it. (I think I said it earlier when I said they will report if you cross the limit of forex you convert).

The only problem I see here is IT filing. Frankly, I have not looked into it.

As, I said the whole rule is vague and you have your view to look at it. It is kinda glass half empty, half full thing without the optimistic or pessimistic explanations thrown in.

Anyhow, as you have already decided to quit, good luck to you for your next venture. :thumb:

 

[pipshower]

Re: Legality of forex trading in india...

Well pipshower, thanks for giving me that info so kindly but then let us for a moment think of ppl trading off NASDAQ or DOW Jones, if they transfer $100, 000 to US they might also land in trouble. I mean, they would if they follow what you said(dont transfer money abroad for capital purposes), right. But then, you have numerous articles who hailed RBI when they raised the limit from $50k to $100k for investment. There are many articles online on that particular topic.

To top it off RBI would want ppl in India to not make money abroad as it would then violate the max monetary limit, wont it? That would also mean trouble.

Coming to point on transactions, did you know CC is one of the pillars on which IT collections are based, so they are utterly traceable and can be checked. Also, no bank would tolerate any kind of illegal activity(it is coming from a guy who has worked with one), they have special monitoring system and once you break any rule they will report you the Central banking agency, make no mistake about it. (I think I said it earlier when I said they will report if you cross the limit of forex you convert).

The only problem I see here is IT filing. Frankly, I have not looked into it.

As, I said the whole rule is vague and you have your view to look at it. It is kinda glass half empty, half full thing without the optimistic or pessimistic explanations thrown in.

Anyhow, as you have already decided to quit, good luck to you for your next venture. :thumb:

Yes i do agree with you.
There is no doubt about what you have said.
When i started out i had same thing in mind as you have now though i never used CC online for any deposits since i earned my money in paypal through various online projects which i used to deposit to my forex account.

And i said i am quitting forex trading on my account but there are various forex projects i am part of whose earnings come under consultancy based earnings so i will continue with forex but in a different form .

AND a hint to you to get reliable information about forex trading is to call the Mumbai office of INTERACTIVE BROKERS and ask them whether we[Indians] can trade through them forex and is that permitted by the indian govt . And if they say yes then there is no problem at all

 

[TFL]

Re: Legality of forex trading in india...

Yes i do agree with you.
There is no doubt about what you have said.
When i started out i had same thing in mind as you have now though i never used CC online for any deposits since i earned my money in paypal through various online projects which i used to deposit to my forex account.

And i said i am quitting forex trading on my account but there are various forex projects i am part of whose earnings come under consultancy based earnings so i will continue with forex but in a different form .

AND a hint to you to get reliable information about forex trading is to call the Mumbai office of INTERACTIVE BROKERS and ask them whether we[Indians] can trade through them forex and is that permitted by the indian govt . And if they say yes then there is no problem at all

I contacted IB and they said no way to go for forex.

 

[nitinsy]

Atleast you can trade in NSE Currency Derivaties

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4410&Mode=0

Nitin