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!
HOMEMADE BROCCOLI SHELLS N’ CHEESE
HOMEMADE BROCCOLI SHELLS N’ CHEESE
Broccoli shells n' cheese is a classic American dish that goes well along side any meal, or as a hearty side dish. 100% real, 100% homemade.
got a request from Nelson (a BB reader) last week to make some homemade mac n’ cheese and what a fantastic idea it was. I really need some mac n’ cheese in my life right about now. Of course, there is the issue of guilt surrounding eating large quantities of cheese, so I added a good dose of broccoli to rationalize it all. Ha. right. But if you don’t want broccoli shells and cheese, just leave out the broccoli, make everything else as directed, and you’ll have a good classic mac n’ cheese.
INGREDIENTS
- 8 oz. pasta $0.55
- 1/2 lb. frozen broccoli florets* $0.90
- 1/2 small onion, about 1/2 cup diced $0.18
- 3 Tbsp butter $0.33
- 3 Tbsp all-purpose flour $0.03
- 2.5 cups milk $0.65
- 8 oz. 2 cups sharp cheddar, shredded $1.89
- 1/4 cup grated parmesan $0.24
- Salt and pepper to taste $0.05
INSTRUCTIONS
- Bring a large pot of water to a boil for the pasta. Once boiling, add the pasta and continue to boil until the pasta is tender. Drain the pasta in a colander and set it aside until ready to use.
- Meanwhile, allow the broccoli to thaw. Once partially thawed, chop the florets into smaller, bite-sized pieces, and set them aside to fully thaw while you prepare the rest of the dish.
- While the pasta is cooking, begin the cheese sauce. Finely dice the onion and add it to a sauce pot with the butter. Cook the onion and butter over medium heat until the onions are softened (about 2-3 minutes).
- Add the flour to the butter and onion. The flour and butter will form a paste, or roux. Whisk the roux over medium heat for 1-2 minutes more taking care not to let it scorch. This slightly cooks the flour preventing the cheese sauce from having an overly flour or paste-like flavor.
- Whisk the milk into the roux until no lumps remain. Add some freshly cracked pepper to the sauce. Bring the mixture up to a simmer, stirring often (you may need to raise the heat just slightly). When the sauce reaches a simmer, it will begin to thicken. When it is thick enough to coat the back of a spoon, it’s time to add the cheese.
- Turn the burner off and whisk in the shredded cheddar, one handful at a time, until it is fully melted in. Next, stir in the grated Parmesan. Give the cheese sauce a taste and add salt, pepper, and hot sauce to taste.
- Once you have the cheese sauce seasoned to your liking, return the drained pasta to its large pot, add the chopped broccoli, and pour the cheese sauce over top. Stir until everything is combined and coated in the wonderfully cheesy sauce. Serve hot.
NOTES
*To use fresh broccoli in this recipe, cut two broccoli crowns into small florets. Add the cut florets to the boiling pasta water during the pasta's last minute of cooking. This will blanch the broccoli, but leave it just firm enough to add texture. Drain the broccoli along with the pasta in the colander.
