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!
Loaded Baked Potato Soup
Loaded Baked Potato Soup
Now that it’s officially Fall, and the temperatures keep dropping, I am so excited to be able to make warm comforting soups like this Loaded Baked Potato Soup!
So yummy, right?!
Loaded Baked Potato Soup
Serves 8
Recipe from: The I Heart Naptime Cookbook
10 min Prep Time
25 min Cook Time
35 min Total Time
Ingredients
- 4 large russet potatoes, scrubbed
- 8 bacon slices
- 4 tbsp unsalted Challenge Butter
- 2 garlic cloves, minced
- 1/4 cup chopped yellow onion
- 1/3 cup all-purpose flour
- 2 cups low fat milk
- 1 cup half and half
- 2 cups chicken stock
- 1 tsp kosher salt, plus more to taste
- 1/2 tsp garlic salt, plus more to taste
- 1/2 tsp black pepper
- 1 cup shredded mild cheddar cheese
- 1 cup shredded sharp cheddar cheese
- 1 cup sour cream
- Minced fresh chives, for garnish
Instructions
- Pierce the potatoes multiple times with a fork, then microwave them for 12 to 15 minutes, or until tender.* Carefully halve the potatoes and let cool. Once cool enough to handle, remove the skins, and cut into chunks.
- Meanwhile, cook the bacon in a skillet over medium-high heat until crisp. Transfer to a paper towel-lined plate to drain and cool. Reserve up to 1 tablespoon of the bacon fat from the pan, discarding the rest. Once the bacon has cooled, crumble it into small pieces.
- In a large pot, melt the butter over medium-low heat. Add the reserved bacon fat, garlic and onion and cook for 2 to 3 minutes, or until the onion is tender. Slowly whisk the flour into the pan and stir for 1 to 2 minutes. Slowly whisk in the milk and half-and-half. Keep whisking until smooth. Gradually add the chicken stock. Bring to a light simmer and whisk in the kosher salt, garlic salt and pepper. Keep at a light simmer until the mixture has thickened slightly, 5 to 7 minutes.
- If you'd like to use cheeses and bacon as a garnish, reserve 1/4 cup of t each. Stir in the remaining cheeses, remaining bacon, and the sour cream. Remove the pot from the heat. Scoop potato chunks into the pan, breaking them into small pieces or leaving them chunky, depending on your preference. Serve hot, topped with your favorite garnishes, like cheese, bacon and chives.
Notes
*If desired, you can bake your potatoes in the oven. Preheat oven to 350 degrees F and bake the potatoes directly on the rack for 45 minutes or until fork tender.
