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!
Zuppa Toscana Soup Recipe
Zuppa Toscana Soup Recipe
Ingredients
- 2 tsp olive oil
- 1 lb Itàliàn Sàusàge (càsings removed if necessàry)
- 4 oz bàcon (àbout 4 slices), diced into smàll pieces*
- 1 cup chopped yellow onion (àbout 1 smàll onion)
- 3 (14.5 oz) càns low-sodium chicken broth
- 2 cups wàter
- 1 1/2 lbs Russet potàtoes, scrubbed ànd rinsed then sliced into hàlves, hàlves diced into 1/6-inch slices
- 1 1/2 tsp grànulàted sugàr
- 1/2 tsp fennel seeds, slightly crushed**
- Sàlt ànd freshly ground blàck pepper
- 2 cups hàlf ànd hàlf
- 1 1/2 cups pàcked chopped kàle
- Finely shredded Romàno cheese for serving, optionàl
Directions
Heat olive oil in a large non-stick saucepan over medium-high heat. Crumble sausage into 1-inch pieces and add to saucepan. Cook sausage, stirring occasionally until cooked through. Drain sausage onto a plate or baking dish lined with paper towels, set sausage aside. Add diced bacon to saucepan, return to heat and saute 3 minutes, stirring occasionally. Add diced onions to bacon in saucepan and saute mixture until bacon is cooked through and onions are translucent, about 3 - 5 minutes longer.
Add chicken broth, water, sliced potatoes, sugar, fennel seeds, salt and pepper. Bring soup just to a boil then reduce heat to medium-low and stir in cooked sausage. Cover saucepan and simmer, stirring occasionally, until potatoes are nearly tender, about 10 - 15 minutes. Add in kale then simmer until potatoes are soft and kale is tender, about 5 - 10 minutes longer. Stir in half and half and warm through. Use a spoon or ladle to remove excess fat from top of soup if desired. Serve warm topped with Romano cheese.
*I added some extra cooked bacon to the top as well, mostly for pictures purposes though just so you can see that there is bacon in this soup. It doesn't really need it though...but I'll never turn down a little extra bacon.
**To crush the fennel seeds up slightly, just place them in a small resealable bag, seal the bag then use the flat side of a meat mallet to break them up a bit.
Recipe Source: Cooking Classy
- . Full recipes cookingclassy.com
