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!
Creamy Lemon Chicken Piccatta
Creamy Lemon Chicken Piccatta
It is just like the classic chicken piccata dish, but with the added lemon tang. It gives it such a fresh and delicious taste to this creamy sauce. The chicken has a delicious breading on the outside and it is perfect served over some pasta. Everyone in my family loved this meal. It had such a delicious flavor and will be one that we make again and again!
Creamy Lemon Chicken Piccatta
Prep time 10 mins
Cook time 15 mins
Total time 25 mins
A quick and easy one pot meal that is on the dinner table in 30 minutes! Tender breaded chicken in a creamy lemon sauce that the entire family will love!
Author: Alyssa
Serves: 4
INGREDIENTS
- 4 whole Boneless, Skinless Chicken Breasts
- salt and pepper to taste
- ¼ cup all purpose flour
- 2 Tablespoons Butter
- 2 Tablespoons Olive Oil
- 1 cup chicken broth
- 2 whole Lemons
- ¾ Cup Heavy Cream
- ¼ cup capers
- Chopped parsley, for garnish
- 1 pound Angel Hair Pasta
INSTRUCTIONS
- Heat 2 tablespoons butter and 2 tablespoons of oil in a large skillet over medium high heat. (If the chicken breasts are overly thick, pound them to be thinner. Cooking time will be shorter.) Salt and pepper each side of the chicken breasts and dredge in the flour. Put the chicken breasts in the skillet. Cook for about 3 minutes on each side, or until it is cooked throughout and no longer pink. Remove from the skillet and set aside on a plate.
- Turn the heat to medium low. Add broth, juice from both lemons, heavy cream, and capers. Bring the sauce to a boil and return to medium low heat. Test the sauce and season with salt and pepper as needed. Allow the sauce to cook and bubble for about 3 minutes.
- Serve the chicken over cooked pasta and spoon the sauce over both. Sprinkle with fresh chopped parsley.
