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!
Garlic Pull-Apart Bread
Garlic Pull-Apart Bread
Looks impressive? It’s really easy to make. 6 ingredients and 30 minutes are all you need for this cheesy garlic pull-apart bread. Serve it as a side, an appetizer, or a snack. Bring it to a potluck or tailgate party to knock everyone’s socks off!
garlic pull-apart bread
Prep Time: 15 minutes
Cook Time: 30 minutes
Yield: 6 servings
Category: Side
Method: Bake
Cuisine: American
DESCRIPTION
- Looks impressive? It’s really easy to make. 6 ingredients and 30 minutes are all you need for this cheesy garlic pull-apart bread. Serve it as a side, an appetizer, or a snack. Bring it to a potluck or tailgate party to knock everyone’s socks off!
INGREDIENTS
- 1 Artisan bread loaf
- 8 ounce Monterey jack cheese with jalapeño peppers, thinly sliced
- 3/4 teaspoon red pepper flakes
- 1/4 cup chives, chopped
- 1/4 cup unsalted butter
- 6 garlic cloves, thinly sliced or minced
INSTRUCTIONS
- Slice the bread horizontally and vertically into 1-inch cubes, leaving the bottom of the loaf intact with the bread pieces still attached.
- Slice cheese, then garlic.
- Combine red pepper flakes with chopped chives in a small bowl.
- Lay the bread on a piece of foil. (The foil should be large enough the wrap the bread.) Gently stuff the cheese slices into the bread between the bread slices. (The Kitchn recommends to stuff between the vertical slices first, then go back and fill in the spaces between the horizontal cuts — it’s a bit easier this way! It also helps to have a helper who can hold the slices apart while you stuff.)
- Next, add the red pepper flakes and chives right next to each cheese slice in the bread.
- Now, preheat oven to 350°F.
- Melt butter in a small skillet over medium heat on your stove top. Stir in sliced (or minced) garlic, switch to medium-low heat, and let the garlic cook in the butter for 2-3 more minutes until fragrant.
- Use a small spoon to stuff the garlic slices into the bread between the bread slices. Brush the infused butter all over the bread.
- Wrap the prepared bread with foil and bake for 20 minutes. Unwrap the top and bake for another 10 minutes until the cheese is completely melted and the top of the bread is crispy. Enjoy!
NOTES
You can use any type of cheese for this recipe. Shredded ones work just fine.
For a more meaty flavor, bacon bits, sausage, ham pieces can be mixed in into the stuffing.
Other spice ideas include chipotle chili pepper, smoked Spanish paprika, garlic powder, etc.
