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!
Chinese Baked Fish Fillet And Baked Cheesy Salmon With Wasabi
Festive season is a great time to feast together with family and friends plus a bit of catch up and updates on each others progress. This Christmas season other than festive bakes I also have some quick dishes which you might be interested with.
In this post I am sharing two different "fish" dishes which you could cater for everyone in the family such as Chinese Baked Fish Fillet with oyster sauce and Baked Cheesy Salmon using Japanese mayonnaise and wasabi.
For something more Asian taste, this Chinese Baked Fish Fillet would be something easy that you could prepare and get ready in less than 30 minutes for an evening dinner to impress your guests. For the fillet you can use any firm white fish such as cod, haddock, or grouper which work well on this recipe.
(Serves: 1 | Preparation: 5 minutes | Cooking: 15 - 20 minutes)
Ingredients:
- 1 Piece Grouper Fish Fillet (200g), skin intact
- 1/2 Tablespoon Oyster Sauce
- 1 Teaspoon Chinese Cooking Wine
- 1/4 Teaspoon Sugar
- 1/4 Teaspoon Sesame Oil
- 2 Slices Ginger, thinly sliced
- 1 Stalk of Spring Onion, cut into sections
- 1 Red Chilli(optional), sliced
- Served with Steamed Rice and Asian Greens
Method:-
- Preheat oven to 200 °C (degree Celsius). Arrange spring onion and some julienne ginger on a disposal baking tray and top with fish fillet.
- Combine oyster sauce, cooking wine, sugar and sesame oil in a bowl and mix well.
- Spoon sauce mixture over fish fillet, top with remaining ginger and chilli, cover with foil and bake for 15 - 20 minutes or until fish is just cooked through.
- Sprinkle some extra chopped spring onion and serve hot with steamed rice and Asian green.
Note:
~ Stir-fry baby bok choy and fresh shiitake mushrooms with some garlic and ginger then lightly season it with salt.
