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!
Simple Breakfast Tostadas
Simple Breakfast Tostadas
These breakfast tostadas are perfect for weekend brunch or weekday dinners! They’re fresh and filling, but won’t weigh you down. Vegetarian and gluten free. Recipe yields 8 breakfast tostadas, enough for 4 hearty servings.
Simple Breakfast Tostadas
Author: Cookie and Kate
Prep Time: 30 minutes
Cook Time: 10 minutes
Total Time: 40 minutes
Yield: 8 tostadas
Category: Breakfast
Method: Baked
Cuisine: Mexican
INGREDIENTS
- 8 corn tortillas (make sure they’re 100% corn or they won’t get crispy)
- 1 tablespoon extra-virgin olive oil
- 2 cups refried beans, warmed
- ½ cup grated sharp cheddar cheese
- 8 eggs, fried or scrambled (your preference)
- 2 cups pico de gallo
- Optional garnishes, for serving: your favorite hot sauce or salsa, avocado, and/or crumbled Cotijah or feta cheese
INSTRUCTIONS
- To prepare the crispy tortillas: Preheat the oven to 400 degrees Fahrenheit with two racks placed near the middle of the oven. Line two large rimmed baking sheets with parchment paper for easy cleanup, if you’d like.
- On the baking sheets, brush both sides of each tortilla lightly with oil. Arrange 4 tortillas in a single layer across each pan. Bake for 10 to 12 minutes, turning halfway, until each tortilla is golden and lightly crisp. Set aside.
- Meanwhile, prepare the remaining components (refried beans, pico de gallo, and eggs, cooked to your liking).
- To assemble, spread warm refried beans over each tostada. Top with a sprinkle of cheese, cooked egg(s) and use a slotted spoon or serving fork to top the eggs with pico de gallo. Top with any optional garnishes you’d like, and serve promptly.
- Tostadas are best enjoyed fresh, since the tortillas will lose their crispness with time. However, the leftovers are still good to me! They’ll keep for about 3 days in the refrigerator. If you have leftover refried beans and/or pico de gallo, they both make a great dip for tortilla chips or filling for quesadillas or burritos.
NOTES
MAKE IT QUICK: If you’re in a hurry, warmed store-bought refried beans will do. You could also replace the pico de gallo with store-bought salsa, gently warmed.
PREPARE IN ADVANCE: You can make the beans and pico de gallo in advance. Gently reheat the beans and let the pico de gallo come to room temperature while you’re working on the tortillas and eggs.
MAKE IT GLUTEN FREE: Use certified gluten-free corn tortillas.
MAKE IT VEGAN/EGG FREE: These tostadas are still quite filling without the eggs.
MAKE IT DAIRY FREE: Don’t add cheese! My fried eggs are made without any dairy products
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