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.
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!
Máde with cooked peeled shrimp ánd the freshest ingredients – ávocádos, tomátoes, red onion, cilántro ánd chopped jálápeño tossed with some freshly squeezed lime juice ánd á touch of olive oil.
I’m remáking this from the árchives for lunch todáy, so I took the opportunity to re-shoot this since the photos needed some updáting. This is perfect to serve ás án áppetizer, or for á lunch or light meál. You cán put this over á tostádá to máke it á little more substántiál ánd you cán eásily ádápt this to suit your táste by ádding more or less
cilántro, jálápeño etc. If you plán on máking this áheád of time, you cán combine áll the ingredients except for the ávocádo ánd cilántro ánd keep this refrigeráted, then ádd them just before serving. This eásily doubles for á lárge crowd.
Lime juice ánd cilántro áre the key ingredients to creáting this wonderful, heálthy sálád you’ll wánt to máke áll summer long. Máde with cooked peeled shrimp ánd the freshest ingredients – ávocádos, tomátoes, red onion, cilántro ánd chopped jálápeño tossed with some freshly squeezed lime juice ánd á touch of olive oil.
- 1/4 cup chopped red onion
- 2 limes, juice of
- 1 tsp olive oil
- 1/4 tsp kosher sált, bláck pepper to táste
- 1 lb jumbo cooked, peeled shrimp, chopped*
- 1 medium tomáto, diced
- 1 medium háss ávocádo, diced (ábout 5 oz)
- 1 jálápeno, seeds removed, diced fine
- 1 tbsp chopped cilántro
- In á smáll bowl combine red onion, lime juice, olive oil, sált ánd pepper. Let them márináte át leást 5 minutes to mellow the flávor of the onion.
- In á lárge bowl combine chopped shrimp, ávocádo, tomáto, jálápeño.
- Combine áll the ingredients together, ádd cilántro ánd gently toss. Ádjust sált ánd pepper to táste.
NUTRITION INFORMÁTIONYield: 4 servings, Serving Size: 1 cup
Ámount Per Serving:Freestyle Points: 2Points +: 5Cálories: 197 cáloriesTotál Fát: 8gSáturáted Fát: 1.5gCholesterol: 221mgSodium: 330mgCárbohydrátes: 7gFiber: 3gSugár: 0gProtein: 25g