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!
Family Favorite Meatloaf
Family Favorite Meatloaf
Today, I’m bringing over one of my all-time favorite comfort foods…meatloaf. As a kid, I detested this dish. In fact, I hated it so much that my mom would make me a separate hamburger to enjoy while everyone else gobbled up her meatloaf. I don’t know if my taste buds matured or if this recipe is REALLY just that good, but I tried this recipe about 6 years ago and have never looked back.
I got this recipe from a high school friend and the hubs (Eric) and I liked it so much, it became our go-to dish to make for company. In fact, our friends have even titled it, “Eric’s Meatloaf.” The sauce is delicious and the melted cheese inside combined with the pepper and onion make for a dynamite combination. I hope you and your family will enjoy it soon!
FAMILY FAVORITE MEATLOAF
Ingredients
- 1 lb ground beef
- 1/2 bell pepper, diced
- 1/2 small onion, diced
- 1 egg
- 1/2 c bread crumbs
- 1/2 c shredded cheese (any kind)
- 1/3 c ketchup
- 1 tsp. dry mustard
- 1/2 tsp salt
- 1/4 tsp black pepper
- Topping!
- 1/3 cup ketchup plus 2 Tbsp brown sugar
Instructions
- Preheat oven to 375 degrees. Mix meatloaf ingredients in a large bowl. Form into a loaf and place on an aluminum foil lined pan. Bake for 45 minutes. Combine ketchup and brown sugar for topping and spread over the top. Bake for 15 more minutes or until meatloaf is cooked through. Let it rest 10 minutes before slicing and ENJOY!
- And, finally since I like to encourage a healthy lifestyle on my blog, My Life Well Loved, here’s a Whole 30 approved all-natural Mexican Meatloaf recipe I’ve fallen in love with lately if you want to check that out! I hope you’ll come visit me soon and check out Brandi’s guest post on my blog as well as other healthy recipes you may want to add to your meal plan! Thanks so much for having me today, everyone and much love to Aunt Bee herself!
