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!
MEXICAN PIZZA
These Mexican Pizzas are so much better then….you know that one little building with a drive thru and I think it has a bell on it. Yes that one….Well it has always been my favorite on the menu. Pretty brilliant combining two of my favorite foods pizza and tacos, this one is definitely a MUST make!
This Mexican Pizzas can be whipped up for a quick weeknight dinner. I use my cast iron skillet to fry the tortillas, and then bake them on this sheet pan. Flour tortillas layered with beans and taco meat then topped with sauce, cheese and all your favorite toppings. Put a dollop of sour cream or salsa . Mmmm Perfection!!
INGREDIENTS
- 1 pound ground beef
- 1 packet taco seasoning
- ¼ cup water
- 8 (6-inch) flour tortillas
- 1 (16 ounce) can refried beans
- 2 8 oz jar taco sauce
- 1½ cup shredded cheddar cheese
- 1½cup shredded pepper-jack cheese
- 1 large diced tomatoes
- 1 can sliced olives
- ½ cup vegetable oil
- green onions sliced
INSTRUCTIONS
- Preheat oven to 400 degrees F.
- In a large skillet heat the oil up on medium heat.
- Fry each tortilla in the oil just until lightly browned and crispy, remove and set aside on paper towels
- Meanwhile, cook the ground beef in a large skillet over medium-high heat. Drain grease. Add taco seasoning and ½ cup taco sauce. Bring mixture to a boil, then reduce heat to medium-low. Stir and simmer for 10 minutes. Remove from heat.
- In a small pan on medium heat warm the refried beans
- Place a single layer of the beans on the crispy tortillas, followed by a layer of the taco meat, Top with another tortilla. Spread 3-4 tablespoons of taco sauce, sprinkle some cheddar and jack cheese and top with a few tomatoes and olives.
- Bakes in the oven for 10-12 minutes or until cheese is melted and bubbly
- Remove from oven let set for 5 minutes top with green onions and slice
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