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!
Perfect Fish Tacos
Perfect Fish Tacos
A classic fish taco is something we all need to be able to master. This is our perfect recipe: The fish — we use cod, but any flaky variety works — marinates in a mixture of lime juice, chili powder, and cumin that will become your standard. (Seriously, steak or chicken marinated in this will also taste bomb.) But the real gem of this recipe is the cabbage slaw — don't skip it. It takes just a few minutes to toss together and will make you feel like you're eating out at a Mexican restaurant.
People can be intimidated by cooking fish for tacos, but don't be! After marinating, the fish just needs to cook in a glug of olive oil a few minutes per side in a skillet. Go nonstick so you don't risk the skin on the fish sticking — the worst! Let the fish rest a few minutes before using a fork to flake it into pieces.
YIELDS:4
PREP TIME:0 HOURS 20 MINS
TOTAL TIME:0 HOURS 35 MINS
INGREDIENTS
- 3 tbsp. extra-virgin olive oil
- Juice of 1 lime
- 2 tsp. chili powder
- 1/2 tsp. ground cumin
- 1/2 tsp. cayenne pepper
- 1 1/2 lb. cod (or other flaky white fish)
- 1/2 tbsp. vegetable oil
- Kosher salt
- Freshly ground black pepper
- 8 corn tortillas
- 1 avocado, diced
- Lime wedges, for serving
- Sour cream, for serving
FOR THE CORN SLAW:
- 1/4 c. mayonnaise
- Juice of 1 lime
- 2 tbsp. freshly chopped cilantro
- 1 tbsp. honey
- 2 c. shredded purple cabbage
- 1 c. corn kernels
- 1 jalapeño, minced
DIRECTIONS
- In a medium shallow bowl, whisk together olive oil, lime juice, chili powder, cumin, and cayenne.
- Add cod, tossing until evenly coated. Let marinate 15 minutes.
- Meanwhile, make slaw: In a large bowl, whisk together mayonnaise, lime juice, cilantro, and honey. Stir in cabbage, corn, and jalapeño. Season with salt and pepper.
- In a large nonstick skillet over medium-high heat, heat vegetable oil. Remove cod from marinade and season both sides of each filet with salt and pepper. Add fish flesh side-down. Cook until opaque and cooked through, 3 to 5 minutes per side. Let rest 5 minutes before flaking with a fork.
- Assemble tacos: Serve fish over grilled tortillas with corn slaw and avocado. Squeeze lime juice on top and garnish with sour cream.
