It's possible to trade profitably on the Forex, the nearly $2 trillion worldwide currency exchange market. But the odds are against you, even more so if you don't prepare and plan your trades. According to a 2014 Bloomberg report, several analyses of retail Forex trading, including one by the National Futures Association (NFA), the industry's regulatory body, concluded that more than two out of three Forex traders lose money.
This suggests that self-education and caution are recommended. Here are some approaches that may improve your odds of taking a profit.
Prepare Before You Begin Trading
Because the Forex market is highly leveraged -- as much as 50 to 1 -- it can have the same appeal as buying a lottery ticket: some small chance of making a killing. This, however, isn't trading; it's gambling, with the odds long against you.
A better way of entering the Forex market is to carefully prepare. Beginning with a practice account is helpful and risk-free. While you're trading in your practice account, read the most frequently recommended Forex trading books, among them
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination, by Michael R. Rosenberg is short, not too sweet and highly admired introduction to the Forex market.
Forex Strategies: Best Forex Strategies for High Profits and Reduced Risk, by Matthew Maybury is an excellent introduction to Forex trading.
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex, by Kathy Lien is another concise introduction that has stood the test of time.
All three are available on Amazon. Rosenberg's book, unfortunately, is pricey, but it's widely available in public libraries. "Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude," by Mark Douglas is another good book that's available on Amazon, and, again, somewhat pricey, although the Kindle edition is not.
Use the information gained from your reading to plan your trades before plunging in. The more you change your plan, the more you end up in trouble and the less likely that elusive forex profit will end up in your pocket.
Diversify and Limit Your Risks
Two strategies that belong in every trader's arsenal are:
Diversification: Traders who execute many small traders, particularly in different markets where the correlation between markets is low, have a better chance of making a profit. Putting all your money in one big trade is always a bad idea.
Familiarize yourself with ways guaranteeing a profit on an already profitable order, such as a trailing stop, and of limiting losses using stop and limit orders. These strategies and more are covered in the recommended books. Novice traders often make the mistake of concentrating on how to win; it's even more important to understand how to limit your losses.
Be Patient
Forex traders, particularly beginners, are prone to getting nervous if a trade does not go their way immediately, or if the trade goes into a little profit they get itchy to pull the plug and walk away with a small profit that could have been a significant profit with little downside risk using appropriate risk reduction strategies.
In "On Any Given Sunday," Al Pacino reminds us that "football is a game of inches." That's a winning attitude in the Forex market as well. Remember that you are going to win some trades and lose others. Take satisfaction in the accumulation of a few more wins than losses. Over time, that could make you rich!
Healthy and Fresh Pasta Salad with Spinach and Ricotta Cheese
Fresh and easy pasta salad, filled with healthy ingredients and Mediterranean flavors
Happy first day of fall!Even if the temperature cooled down a little bit in the last couple of days, here in Southern California, it doesn't really feel like fall at all. No gray sky and chilly weather. No orange and red leaves (mostly), and no need to snuggle under a blanket around the fireplace... well, I could still do that anyways! Maybe I do miss a bit the change of seasons, as I was used to growing up in Italy. But the sunny and blue skies and perfect beach weather year around is what I love most about Southern California. Nowhere else I lived, I could play tennis and beach volleyball any day of the year!Yesterday, it was another great day at the beach. The ocean water was still quite warm and boogie boarding was great. After the super hot days last week, I still felt like preparing a picnic lunch very fresh, easy, and requiring very little time around the stove. This dish is filled with healthy ingredients and Mediterranean flavors: organic spinach and tomatoes, fresh ricotta, and some delicious olives .You can use your favorite olives in this recipe. Anything, like kalamata or Greek olives, with a strong taste that will complement the sweet flavor of the ricotta, tomatoes and spinach. You can also substitute the ricotta with feta cheese for a bolder flavor.Looks amazing, right?Ingredients: serving 4- about 3 oz of organic fresh baby spinach
- 2 fresh, organic tomatoes
- 1/3 cup of pitted olives (Kalamata or Greek)
- 1 cup of fresh ricotta cheese (or feta cheese)
- salt and pepper to taste
- few tablespoons of extra virgin olive oil
- 12 oz farfalle pasta, or other short pasta, like penne or conchiglie
Preparation time: 20 minutes
Directions:
Step 1: Bring a large pot of salted water to a boil. As soon as the water boils, cook the pasta as directed in the box.
Step 2: Cut the spinach in thin strips, cut the tomatoes in small cubes, and slice the olives. Add all in a large bowl. Salt to taste and sprinkle with olive oil.Step 3: Drain the pasta and run it under cold water to stop from overcooking. Toss in the bowl and mix with all the ingredients. Wait a couple of minutes and mix in the ricotta cheese (or feta) crumbled into pieces.Enjoy!
