October 2 (Mon): 【Harmonic】 Nikkei 225 VS Russell 2000 (Course: Expense Application & Questions Introduction)

Good morning☀

First, an introduction to questions.

“When entering with harmonics, is it correct to not enter based solely on harmonic signals, but to use Bollinger Bands for environmental awareness, and if you judge that a reversal is likely at the PRZ, then enter?”

➥ You are correct.

● Scenario construction: Bollinger Bands

● Entry～Exit: Harmonics

Bollinger Bands have a characteristic that makes it easy to construct a scenario by looking at the bands, and harmonics specialize in Entry.

Therefore, we use them separately.

In the Bollinger Bands and Harmonics newsletters, we detail each analysis result, so please understand.

Now it’s October.

The year is coming to an end again, isn’t it?

It’s about time to keep in mind the tax return as well.

As I wrote before,

・Textbook expenses

・Newsletter expenses

・Internet expenses

・Electricity expenses

・Computer expenses

・Smartphone expenses

These can be claimed as business expenses on your tax return.

However,they are limited to what you use for trading.

I trade only on my home computer and never on my phone, so I do not claim any smartphone expenses.

In other wordsShouldn’t you not claim?

Even internet costs for home are not fully deductible?

If you rent a trading room, then it might be fully deductible, but

most people’s home internet and trading internet share the same connection, so internet costs can be partially claimed.Partial deductionThe method to calculate the “partial” is

1) Calculate by the amount of data used for trading.

2) Calculate by the time spent trading.

3) Calculate by the total floor area.

There are apparently other methods… (this is just one tax advisor’s opinion)

1 and 2 are difficult to prove and change every month, so

I was recommended to use 3, the total floor area.

What percentage of the house’s total floor area is the trading space?

If the trading space is 10% of the house,

you can deduct 1/10 of the internet costs as expenses.

I calculate it at 1/10, so

currently internet cost is 980 yen/month (campaign price)

thereby, an expense deduction of 98 yen per month.

Now today I plan to look at a comparison with the ‘Russell2000’.

(※ The following is limited to members.)