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!
THE BEST BAKED SPAGHETTI
THE BEST BAKED SPAGHETTI
The Best Baked Spaghetti - delicious spaghetti casserole! Hamburger/Sausage, spaghetti sauce, eggs, parmesan, pasta, ricotta, sour cream and mozzarella. Also makes a great freezer meal!
I love Baked Spaghetti casseroles. I made this casserole so Chicken Legs would have something to eat while I was in Europe. We ate this for dinner and I cut up the leftovers and froze it for Chicken Legs. This is SO good and super easy to make. You can make this casserole ahead of time and freeze it or refrigerate it until you are ready to serve it. This is a great dish for a crowd. It will easily serve 10-12 people. Just toss together a salad and some Garlic Roll Cupcakes for a quick and easy Italian feast!
Yield: Serves 10
THE BEST BAKED SPAGHETTI
PREP TIME: 15 MINS
COOK TIME: 45 MINS
TOTAL TIME: 60 MINS
INGREDIENTS:
- 16-oz thin spaghetti
- 1-lb italian sausage or hamburger, cooked
- 1 (24-oz) jar spaghetti sauce
- 2 eggs
- 1/3 cup parmesan
- 5 Tbsp butter, melted
- 1 (15-oz) container ricotta
- 3 Tbsp parsley
- 1/4 cup sour cream
- 4 cups mozzarella cheese
INSTRUCTIONS:
- Preheat oven to 350 degrees. Lightly spray a 9x13-inch pan with cooking spray. Set aside.
- Cook spaghetti according to package directions. Drain. Whisk together eggs, parmesan cheese and melted butter. Toss with pasta. Set aside.
- Combine ricotta, parsley and sour cream. Set aside.
- Combine spaghetti sauce and cooked sausage/hamburger. Set aside.
- Layer half of pasta mixture, half of ricotta cheese mixture, half of meat sauce and half of mozzarella. Repeat layers.
- Cover pan with aluminum foil and bake 35 minutes. Remove foil and bake an additional 10 minutes (until cheese is bubbly).
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