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!
PESTO SHRIMP FETTUCCINE IN MUSHROOM GARLIC SAUCE
This delicious Pesto Shrimp Fettuccine in Mushroom Garlic Sauce is all about the flavor combination of zesty pesto, garlic, pasta and mushrooms. The best part of the dish is the perfectly cooked shrimp that is sweet and tender and decadent pasta to go with it!
Perfectly cooked mushrooms is the essential parts to this Pesto Shrimp Fettuccine dish. Heat is what gives you browning for the mushrooms as well as using plenty of oil to help quickly evaporate any water that mushrooms will sweat out.
All you have to do to cook them right is use the hot pan, don’t overcrowd it, add a bit of salt to the mushrooms and resist the urge to move them too soon. You want to get a little browning on the mushrooms by cooking them undisturbed for about 2 minutes.
This delicious Pesto Shrimp Pasta is all about the flavor combination of zesty pesto, garlic and mushrooms. The best part is the perfectly cooked shrimp that is sweet and tender.
Ingredients
- Main Ingredients:
- 2 tablespoons olive oil more if needed
- 1 lb shrimp peeled and deveined
- 10 oz white mushrooms sliced
- 1/2 cup basil pesto
- 4 garlic cloves minced
- 1/2 cup sodium free chicken broth (adjust salt if not sodium free)
- 1/4 teaspoon salt
- Seasoning Mixture:
- 1 teaspoon Italian Seasoning (thyme, oregano, basil - combined)
- 1/4 teaspoon red pepper flakes
- 1/2 teaspoon paprika
- 1/2 teaspoon salt
- chopped fresh basil
- Pasta:
- 10 oz fettuccine pasta (use gluten free for gluten free version)
Instructions
- Heat 1 tablespoon of olive oil in a large skillet over medium heat. Put shrimp in a mixing bowl and rub in seasoning mixture. Mix well to make sure shrimp is coated well. Add to the hot pan and cook for about 3 minutes, turning once midway, until shrimp is pink and cooked through. Remove shrimp from the skillet.
- Add second tablespoon of olive oil to the skillet. Once the pan is hot, add sliced mushrooms and 1/4 teaspoon of salt and cook, stirring, until mushrooms release liquid and reduce in volume and get soft, for about a minute or two. Add minced garlic for the last few minutes, when mushrooms are almost ready.
- Add back the cooked shrimp. Add 1/2 cup basil pesto and 1/2 cup chicken broth. On medium heat, mix everything to combine. Remove from heat.
- In the meantime, bring a large pot of water to boil, add pasta and cook it according to instructions. Drain the pasta, but do not rinse.
- Add pasta to the skillet with mushrooms and shrimp, and stir until pasta is fully coated in sauce. Reheat well on low heat (you can also cover the pan with the lid to retain the heat). Season with more salt if necessary.
- Serve with additional red pepper flakes, if desired.
Recipe Notes
