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 Tuscan Spaghetti with Jumbo Scallops
Creamy Tuscan Spaghetti with Jumbo Scallops
This Creamy Tuscan Spaghetti with Jumbo Scallops is a simple seafood recipe in the most delicious creamy sauce with sun dried tomatoes and spinach!
Author: Dan
Prep Time: 15 minutes
Cook Time: 30 minutes
Total Time: 45 minutes
Yield: 6 servings
Category: pasta
Method: stove top
Ingredients
- 2 pounds jumbo scallops, seasoned with salt and pepper on each side
- 4 tablespoons butter, divided
- 2 tablespoons olive oil
- 1/2 cup diced onion
- 3 cloves garlic, chopped
- 3/4 cup white wine
- 1 1/2 cup chicken broth
- 3/4 cup heavy cream
- 1 tablespoon cornstarch mixed with 1 tablespoon water
- 2 cups fresh baby spinach
- 1 small jar sliced sun dried tomatoes (drained but reserve the oil)
- 1 pound spaghetti
- fresh black pepper and chopped fresh parsley for garnish
Instructions
- Heat 2 tablespoons of the butter together with the oil in a cast iron or stainless steel skillet over medium high heat.
- Add the seasoned scallops to the pan and let them cook on one side for 3-4 minutes until they form a brown crust. If the scallops are sticking to the pan they aren’t ready to turn yet, just give them another minute or two.
- Turn the scallops over and let cook for another 3-4 minutes on the other side until browned.
- Remove the scallops to a plate and cover with foil.
- Melt the remaining 2 tablespoons of butter in the skillet and add the onions. Cook the onions for 5 minutes, stirring until softened.
- Add the garlic, stir and cook for a minute longer then pour in the wine to deglaze the pan.
- Let the wine cook down until reduced by half (about 2 minutes) then pour in the chicken broth and cream and bring to a simmer.
- Mix the cornstarch and water together and pour into the simmering sauce. Whisk and bring back to a simmer, cooking for 5-8 minutes until the sauce is reduced and thickened.
- Add the spinach and the sun dried tomatoes with a couple of tablespoons of the oil from the jar. Stir the spinach into the sauce to wilt. Season the sauce with more salt and pepper to taste.
- Place the scallops back into the sauce, cover and turn off the heat.
- Cook the spaghetti according to the package directions, drain and add to the pan with the sauce* (see note).
- Toss to combine and serve immediately.
Notes
If your skillet is on the smaller side, you can put the cooked spaghetti in a large bowl and then pour the sauce and scallops over the top and toss.
full recipe:
