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!
Quinoa Goat Cheese and Parmesan Cakes
An ideal way to use up any leftover quinoa, you might end up finding yourself making up pots of quinoa just to make more of these delicious little bites after you try them. They make for a fantastic appetizer or light side along with some tomato chutney or marinara sauce
, a legume curry and a lightly dressed leafy green salad to fill out the meal. I do enjoy vegan meals, but I just can't imagine life without my favorite cheeses. In this case, dill and parsley and a light spicing complement the quinoa to perfection, but when you slice into these cakes that are crispy on the outside but melting with cheesy goodness inside, the experience really couldn't get much better. My only regret is not doubling this recipe, as I was sharing with friends, but I won't be making that mistake again. I don't have a huge appetite at any given time, but I bet I could have gobbled up all of these in one sitting. They really are a special treat to the palate and, as an added bonus, plenty good for you too.
Ingredients:
- 1/2 cup soft unripened goat cheese
- 1 1/2 cups cooked quinoa (1/2 cup dried)
- 1/3 cup fresh grated Parmesan cheese
- 2 to 3 tablespoons spelt flour or unbleached white flour
- 2 green or red chilies, seeded and finely chopped
- 2 shallots, finely chopped
- 1/2 teaspoon ground cumin
- 1/4 to 1/2 teaspoon cayenne, to taste
- 1 teaspoon dried dill
- 1/4 cup fresh parsley, finely chopped
- 1/2 teaspoon sea salt, or to taste
- fresh cracked black pepper to taste
- 1 large egg, lightly beaten
- 3 tablespoons olive oil
Instructions:
- Mash the goat cheese with a potato masher or fork.
- In a large bowl, combine the quinoa, cheeses, 2 tablespoons of the flour, chilies, shallots, spices, herbs, salt and pepper, egg and 1 tablespoon of the olive oil. Stir until well combined, adding more flour or oil as needed to achieve a fairly moist mixture that can be shaped into roughly 6 small patties.
- Heat the remaining oil in a non-stick skillet over medium heat. When hot, fry a few patties at a time until golden brown — about 5 minutes each side. Remove and let drain on paper towels.
- Serve warm with your favorite chutney or tomato sauce.
Makes 6 3-inch cakes |
