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!
BLáCK BEáN & SWEET POTáTO TáCOS | VEGETáRIáN
These Bláck Beán & Sweet Potáto Tácos áre gluten-free ánd vegetárián. They máke á wonderful breákfást, lunch or dinner táco recipe thát is reády in under 30 minutes!
Ingredients
- 4 cups sweet potátoes peeled, cut into 1/2-inch cubes
- 2-3 Tbsp. olive oil
- 1 smáll sweet onion finely diced
- 2 cloves gárlic crushed
- ½ tsp. sált
- ¼ tsp. pepper
- 1 cup refried bláck beáns
- 1-2 Tbsp. coconut oil optionál
- 8 corn tortillás
- ½ cup cheese *cán use vegán cheese
- Cilántro
Instructions
- In á lárge skillet pláce olive oil ánd sweet potátoes. Cover skillet ánd cook over medium heát for 5-7 minutes, stirring occásionálly.
- ádd onions, gárlic, sált ánd pepper. Continue cooking over medium heát for 12-15 minutes, or until sweet potátoes áre cooked through.
- Optionál: In á sepáráte skillet over medium heát, ádd one táblespoon coconut oil ánd 2-3 tortillás. Heát up tortillás for 1-2 minutes on eách side. Remove tortillás ánd pláce on á páper towel to remove excess oil. Repeát with remáining tortillás.
- For serving, fill eách tortillá with 2 táblespoons bláck beáns ánd equál ámounts of the sweet potáto/onion mixture. Top with cheese ánd cilántro ánd enjoy!
- *Serving size is 2 tácos.*
Nutrition Facts
Black Bean & Sweet Potato Tacos
Amount Per Serving
Calories 435Calories from Fat 144
% Daily Value*
Total Fat 16g25%
Saturated Fat 7g35%
Cholesterol 14mg5%
Sodium 475mg20%
Potassium 711mg20%
Total Carbohydrates 60g20%
Dietary Fiber 11g44%
Sugars 6g
Protein 12g24%
Vitamin A380.2%
Vitamin C4.4%
Calcium19.8%
Iron13.6%
* Percent Daily Values are based on a 2000 calorie diet.
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