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!
White Bean Chicken Chili
White Bean Chicken Chili
White bean chicken chili simmered in a crockpot with whole roasted jalapenos, tender beans, corn, and lean chicken breast. This recipe is fantastic if I don’t say so myself!
White Bean Chicken Chili
Prep Time 15 mins
Cook Time 3 hrs
Total Time 6 hrs 15 mins
Course: Entree, Soup
Cuisine: Mexican
Servings: 4 servings
Calories: 267 kcal
Ingredients
- 3 jalapeño peppers
- 2 tablespoons olive oil
- 4 cloves garlic, minced
- 1 1/2 cups yellow onion, 1/4-inch dice
- 1 tablespoon cumin
- 1 1/4 pound boneless skinless chicken breasts
- 1 cup roasted green chilies, canned, divided
- 2 1/2 cups white beans, (2-15 oz canned) drained
- 1 cup unsalted chicken stock, divided
- 1 1/2 cups corn, (15 ounces canned)
- 1 1/4 teaspoons kosher salt, more as needed
- 1/4 teaspoon black pepper
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Instructions
- Line a small baking sheet with foil.
- Turn on broil setting on the oven.
- Evenly space out the three jalapeños on the sheet tray.
- Place sheet tray on the highest rack in the oven. Roast the jalapeños until the skins brown and blister, turning over as needed to get all the sides roasted, about 15 minutes.
- Place the roasted chili’s in a small bowl and cover tightly with plastic wrap. Allow the chilies to come to room temperature; the trapped heat will make the skins easier to peel.
- Once cooled, remove the skin and stems. If you like a very spicy chili, leave the seeds, for a more mild chili remove the seeds and discard. Set the jalapeños aside.
- In a large microwave-safe bowl add olive oil, diced onions, minced garlic, and cumin. Stir to combine.
- Microwave for 3 minutes, stir and cook another 2 minutes until onions are tender. Add to slow cooker.
- Add chicken breasts, ½ cup of the roasted chilies, corn, 1 cup of the white beans, ½ cup chicken stock to the slow cooker.
- In a blender, puree ½ cup roasted green chilies, roasted jalapeños, 1 cup beans, and ½ cup chicken stock until smooth, 45 seconds. Add to slower cooker.
- Add salt and pepper to slow cooker.
- Cover and cook on high for 3 hours, or low for 6 hours.
- Remove chicken and shred or cut into cubes.
- Add back to slow cooker and stir to combine. Taste chili and season with more salt and pepper as needed. Serve chili with toppings as desired.
