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!
Minestrone Soup
Ingredients
- 1/4 Cup Quality Olive Oil (not Canola or Vegetable)
- 1 Tablespoon Organic Salted Butter
VEGETABLES:
- 1 Large Organic Sweet Onion (such as Vidalia), chopped
- 4 Cloves Organic Garlic, minced
- 2 Cups Organic Carrots, washed, peeled and diced
- 2 Stalks Organic Celery, washed and diced
- 1 Cup Fresh Organic Green Beans, washed and cut into 1/2″ pieces
- 1 Organic Zucchini, washed and quartered with skin on
- 1 Idaho Potato, washed peeled and cut into small cubes
- 2 Cups Organic Baby Spinach, washed and roughly chopped
PANTRY ITEMS AND SPICES:
- 15 oz. Diced Tomatoes (Imported will have more flavor) with liquid
- 3 Cups Vegetable (or Chicken) Broth
- 2 Cups Water
- 2 Cups Organic Tomato Sauce (try and find one with very low sugar or make your own)
- 1 Can Kidney Beans, drained and rinsed (I used red)
- 1 tsp. Dried Oregano
- 1 tsp. Dried Basil
- 1 tsp. Italian Seasoning
- 1 Bay Leaf
- 1 Cup Ditalini Pasta
- Fresh Parmesan Cheese, shaved or grated
Instructions
- Add the oil to a LARGE stockpot over medium heat. When warm add the butter and allow it to foam. Add the onions and sauté for approx 2 -3 minutes. Season generously with salt which will help the onion sweat.
- Add the diced carrots and celery and saute an additional 4 minutes, stirring often. Again season with salt and pepper.
- Add the garlic and saute an additional minute or until fragrant.
- Add the broth, water and tomato sauce to the pot and bring to a boil.
- Once it reaches a boil reduce the soup to low and begin simmering
- Add the potatoes, kidney beans, green beans, spinach, zucchini and spices. Stir and taste for seasonings. Add salt and/or pepper if necessary.
- Simmer for 45 min -1 hour or until vegetables are tender.
- Before serving cook pasta according to instructions and ladle soup over desired amount. Top with fresh parmesan cheese.
Recipe Adapted from: All Recipes
I used all organic ingredients when making this recipe, and hope you do too!link recipe from http://www.happilyunprocessed.com/minestrone-soup/
