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!
ITALIAN SPAGHETTI SQUASH BOATS
ITALIAN SPAGHETTI SQUASH BOATS
If you have never had Italian Spaghetti Squash Boats, you have truly been missing out. Spaghetti squash looks similar to spaghetti noodles, only in vegetable form! It is a great way of sneaking vegetables into your meals.
Spaghetti squash stuffed with turkey sausage and marinara sauce, then topped with cheese and baked to perfection.
INGREDIENTS
- 1 small to medium sized spaghetti squash halved and seeds removed
- 8 ounces Italian turkey sausage links casings removed
- 2 cups of prepared marinara sauce look for a low fat, low sugar variety
- salt and pepper to taste
- 1 teaspoon olive oil
- 1/2 cup shredded part-skim mozzarella cheese
- 1 tablespoon chopped parsley
INSTRUCTIONS
- Preheat the oven to 375 degrees.
- Place the spaghetti squash halves cut side down in a rectangular baking dish. Add water to come up 1 inch in the pan.
- Bake for 40 minutes or until squash is tender.
- Using a fork, remove most of the flesh of the squash, leaving the shells behind.
- In a large pan heat the olive oil over medium-high heat. Place the turkey sausage in the pan and cook, breaking up the meat with a spatula, for 5-7 minutes or until cooked through.
- Add the marinara sauce and spaghetti squash into the pan; season to taste with salt and pepper and stir to combine.
- Cook for 3-5 minutes, stirring occasionally until the sauce is warmed through.
- Preheat the broiler. Divide the spaghetti squash mixture between the two shells and sprinkle the cheese over the tops.
- Broil for 3-5 minutes or until cheese is melted and browned. Watch carefully so that it doesn't burn!
- Sprinkle with chopped parsley and serve.
