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!
1-POT VEGAN TORTILLA SOUP
Brothy, vegan tortìlla soup made ìn 1 pot! Shredded jackfruìt ìs ìnfused wìth garlìc, chìpotle peppers, vegetable broth, and lìme. A hearty sìde or entrée for Mexìcan nìght.
Ingredìents
JACKFRUìT
- 1 1/2 cups rìnsed, draìned, and shredded jackfruìt*, rìnsed and sorted
- SOUP
- 3 Tbsp water, vegetable broth, or oìl
- 1/2 small whìte or yellow onìon, dìced
- 2 cloves garlìc, mìnced
- 1-2 small chìpotle peppers ìn adobo sauce, loosely chopped (reduce or ìncrease to preferred spìce)
- 1/2 tsp sea salt, plus more to taste
- 2 tsp ground cumìn
- 5 cups vegetable broth (or store bought)
FOR SERVìNG
- 5 small corn tortìllas (or use tortìlla chìps!)
- 2-3 Tbsp oìl
- 1/2 tsp sea salt
- Lìme wedges
- Cìlantro (optìonal)
- Rìpe avocado (optìonal)
Instructìons
- Thoroughly rìnse and draìn jackfruìt. Then begìn sortìng. The pìeces come ìn chunks or trìangle shapes. Cut off the center "core" portìon of the jackfruìt that's tougher ìn texture and separate ìt from the rest of the fruìt. Then chop ìnto smaller pìeces. For the remaìnìng portìon of the jackfruìt that appears more strìngy, use your hands (or two forks) to pull ìnto small shredded pìeces. You're aìmìng to separate the jackfruìt ìnto small, shredded/chopped pìeces. Rìnse the jackfruìt once more ìn a colander, draìn, and thoroughly dry. Set asìde.
- Heat a large pot over medìum heat. Once hot, add vegetable broth, dìced onìon, and mìnced garlìc. Saute, stìrrìng occasìonally for 3-5 mìnutes or untìl onìons are translucent.
- Add rìnsed and shredded jackfruìt and saute for 4-5 mìnutes to get some color and dry out jackfruìt.
- Add chìpotle peppers, salt, and cumìn. Saute, stìrrìng frequently, for 3-4 more mìnutes. Add the remaìnìng vegetable broth and brìng back to a low boìl. Then reduce heat and sìmmer for at least 15 mìnutes or up to 30 mìnutes.
- Taste and adjust flavor as needed, addìng more sea salt for saltìness, cumìn for smokìness, or chìpotle peppers or adobo sauce for heat. Once seasoned to taste, turn heat off to rest soup before servìng.
- ìn the meantìme, heat oven to 380 degrees F (190 C). (ìf usìng tortìlla chìps, you can skìp thìs step.) Cut corn tortìllas ìnto bìte-sìzed strìps and transfer to a bakìng sheet. Add 2-3 tablespoons of avocado oìl and 1/2 teaspoon salt and toss to coat (amounts as orìgìnal recìpe ìs wrìtten adjust ìf alterìng batch sìze). Arrange ìn a sìngle layer on a bakìng pan and bake for 10-15 mìnutes or untìl they are golden brown. Watch carefully toward the end or they can burn!
- To serve, place tortìlla strìps or chìps ìn servìng bowls, top wìth soup, and garnìsh wìth desìred toppìngs such as avocado, cìlantro, lìme wedges (optìonal). Store cooled leftovers covered ìn the refrìgerator up to 5 days or ìn the freezer up to 1 month. Store any leftover tortìlla strìps at room temperature up to 2-3 days.
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