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!
HASH BROWN POTATO SOUP RECIPE (POTATO CHEESE SOUP)
Hash Brown Potato Soup, or Potato Cheese Soup is an absolute Winter MUST MAKE! The ultimate comfort food soup made in minutes. This Potato Soup is loaded with cheese and made with frozen hash browns! It's a delicious twist or a classic Potato Soup Recipe. So cheesy and delicious. Topped with sautéed carrots and bacon for extra flavor!
INGREDIENTS
- 6-8 slices bacon slices cut into 1/8 inch slices
- 4 carrots peeled, shredded
- 1 yellow onion diced
- 3 tablespoons all-purpose flour
- 30 ounce Frozen Shredded Hash Browns thawed
- 6 cups Unsalted Chicken Broth
- 1-2 teaspoons kosher salt start with 1 teaspoon and add more if needed after adding the cheese
- 1 teaspoon freshly ground black pepper
- ¼ teaspoon red pepper flakes
- 1 teaspoon Fines Herbes a mixture of chervil, parsley, tarragon & chives or parsley
- 1 cup Heavy Cream
- 1 cup Milk
- 2 cups Grated Cheese a mixture of Cheddar and Gruyere tastes great.
OPTIONAL GARNISHES
- chopped chives
- crispy bacon
- sautéed shredded carrots
INSTRUCTIONS
- In a Dutch oven, cook bacon over medium-high heat until crisp then transfer to a paper towel-lined plate. Set bacon aside and add immediately before serving.
- Remove all but 2 tablespoons bacon grease from pan.
- Return pan to heat and sauté shredded carrots and diced onions until onions are translucent and carrots soften and begin to caramelize. (If desired, set aside 3 tablespoons of the sautéed vegetables to use as garnish.)
- Sprinkle flour over sautéed onions and carrots, mix well and cook 30 seconds.
- Add chicken stock and seasonings.
- SEE *NOTE IF A SMOOTHER SOUP IS DESIRED. SEE **NOTE IF YOU WANT TO ADD BROCCOLI OR CAULIFLOWER.
- Add hash browns and bring to a boil. Reduce heat to simmer and cook until potatoes are tender.
- Add cream and milk and cook 5-10 minutes, stirring often. Watch closely so soup doesn’t scald.
- Add cheese and stir until cheese melts.
- Taste the soup, and if needed, add more salt and other seasonings.
- Serve immediately.
- Garnishes: chopped fresh parsley, chives, sautéed carrot/onion mixture.
- Enjoy!
RECIPE NOTES
*NOTE: Directions to follow if a smoother soup is desired: Before adding the cream and milk, use a hand blender (or stick blender) to puree the soup, then add the cream and milk. **NOTE: This soup is the perfect base for adding steamed, frozen or roasted cauliflower or broccoli. Just add the vegetables when adding the chicken stock.
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