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!
Ham and Potato Corn Chowder
Ham and Potato Corn Chowder
A lighter, creamy and tasty ham and potato corn chowder that is pure comfort in a bowl!
Ham and Potato Corn Chowder
Prep Time:10 minutes
Cook Time:20 minutes
Total Time:30 minutes
Servings: 6(2 cup servings)
ingredients
- 3 tablespoons oil or butter
- 1 onion, diced
- 2 carrots, diced
- 2 stalks celery, diced
- 2 cloves garlic, chopped
- 1 teaspoon thyme, chopped
- 1/4 cup flour (or rice flour for gluten free)
- 2 cups ham broth or chicken broth
- 2 cups milk
- 1 1/2 pounds potatoes, diced small and optionally peeled
- 8 ounces ham, diced
- 1 cup corn
- salt and pepper to taste
directions
- Heat the oil in a large sauce pan over medium-high heat, add the onions, carrots and celery and cook until tender, about 8-10 minutes.
- Mix in the garlic, thyme and flour and cook until the flour is lightly browned, about 2-3 minutes.
- Slowly stir in the broth, deglazing the pan as you go, add the milk and potatoes, bring to a boil, reduce the heat and simmer until the potatoes are tender, about 10-12 minutes.
- Add the ham and corn, cook until heated and season with salt and pepper.
- Option: Start by cooking 4 strips of bacon, crumbling and setting aside before using the bacon grease to cook the veggies instead of the oil and then use the crumbled bacon as garnish.
Option: Omit the carrots and celery.
Option: Replace the potato with cauliflower.
Option: Fry the ham until slightly crispy on the outside before adding it to the soup.
Option: Add 1-2 tablespoons white miso paste by taking some of the hot broth and mixing it into the miso in a bowl and then mixing it back into the chowder as you remove it from the heat. (The miso adds a nice umami flavour!) Note: miso is salty so you will not need to season with as much salt.
Nutrition Facts: Calories 320, Fat 13g (Saturated 3g, Trans 0), Cholesterol 29mg, Sodium 509mg, Carbs 38g (Fiber 4g, Sugars 8g), Protein 13g
