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!
YELLOW RICE
YELLOW RICE
This Yellow Rice is a great side dish for most any meal. It’s also delicious in casseroles. Made from scratch and your whole family will love it!
What’s up, you guys?! Mandy from Mandy’s Recipe Box here. Who is ready for Christmas time? Who is ready for the chaotic times ahead? Who is ready for the non-stop hustle and bustle? Not me. I am all about Christmas. It’s my favorite time of the year. BUT. I hate the crazy busy time it brings. I just want to sit on my comfy couch with my heated blanket, a book, and Diet Coke. All month long. Is that too much to ask? In between the running around from one school Christmas program to another and parties and shopping, I need easy meals and side dishes. This Yellow Rice is made from scratch and can be used in my Cheesy Rice and Chicken Casserole if you don’t want to use or can’t find the packaged kind. Give it a try! It’s a great recipe to have on hand for an easy side dish.
Yellow Rice
Ingredients
- 4 Tbsp . butter
- 1 c . long-grain white rice uncooked
- 1 tsp minced garlic
- 1 tsp . onion powder
- 1 tsp . ground turmeric
- 2 c . chicken broth
- 1 tsp . salt or to taste
- 2 Tbsp . chopped fresh cilantro optional
Instructions
- Heat butter in a large skillet over medium heat.
- Add the rice, stirring until rice begins to lightly brown.
- Add garlic, onion powder, and turmeric and stir until well combined.
- Slowly stir in chicken broth and raise heat to medium-high. Add salt to taste.
- Bring the mix to a boil and turn heat to low. Cover with a lid.
- Simmer for 20 to 25 minutes. Remove from heat and add cilantro. Fluff with a fork.
- Serves 4.
