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!
SPINACH PESTO TART WITH TOMATOES, MUSHROOMS AND OLIVES
SPINACH PESTO TART WITH TOMATOES, MUSHROOMS AND OLIVES
Making your own tart is super easy! preparation time only takes about 10 minutes and the rest is done in the oven. This makes a very delicious and impressive dish without all the work.
I often make this when I have friends round and quickly want to make something that's delicious without spending too much time in the kitchen. Also there won't be much mess in the kitchen either, so it's a great dish to entertain guests.
INGREDIENTS (3 portions):
Spinach pesto ingredients:
- 60g ground almonds
- 100g baby leaf spinach
- 2 tbsp nutritional yeast
- 2 tbsp extra virgin olive oil
- 1/2 tsp garlic powder
- 1/2 tsp salt
- pepper to taste
Other ingredients:
- Puff pastry sheet
- Tomatoes
- Mini portobello mushrooms
- Pitted kalamata olives (or any black olives)
- Mixed herbs
- 1/2 an onion finely sliced
METHOD:
- Preheat the oven to 180C (350F).
- Take the puff pastry sheet out of the fridge (ideally is should have room temperature - admittedly I always forget this step and I didn't feel it made much of a difference).
- Put all spinach pesto ingredients either into a food processor with a very small amount of water. The less water the better as the puff pastry base will get soggy otherwise and nobody wants a soggy bottom (according to Merry Berry from the Great British Bake off)! if you don't have a food processor you can use a blender: finely cut the spinach first before putting it into the blender with all other ingredients and add a small amount of water.
- Roll out the puff pasty sheet. Spread the spinach pesto on it evenly (all the way to the edges). Slice up the tomatoes, mushrooms, olives and onion and layer them to the puff pastry. Season with mixed herbs and sprinkle some salt and black pepper on it to taste.
