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!
CREAMY TUSCAN CHICKEN WITH SPINACH AND SUN-DRIED TOMATOES
Creamy Tuscan chicken with fresh garlic, spinach, and sun-dried tomatoes is a meal worthy of entertaining or special occasions, yet it can be on your table in under 30 minutes.
Ingredients
- 1-2 tablespoons extra-virgin olive oil
- 1/4 cup all-purpose flour
- 4 boneless skinless chicken breasts, thinly-sliced (about 1-1.5 pounds) (see note 1)
- 2-3 teaspoons kosher salt
- a few turns of freshly-ground black pepper
- 4 cloves garlic, minced (see note 2)
- 1/2 cup chicken broth
- 3/4 cup heavy cream
- 1 teaspoon Italian seasoning
- 1/2 cup Parmesan cheese, grated
- 1-2 cups spinach, roughly chopped
- 1/2 cup sun-dried tomatoes, roughly chopped (see note 3)
- pasta, for serving
Instructions
- In a large skillet, warm olive oil over medium-high heat. Place flour in a small bowl or plate. Lightly sprinkle each side of the chicken breasts with kosher salt and black pepper, then dredge each side lightly through the flour. Shake off any excess, then place chicken breasts in the warm pan. Cook for 3-4 minutes on each side, just until browned and no longer pink in the center. Remove chicken to a plate and set aside.
- If the skillet is dry, add a tiny bit more olive oil, followed by the garlic. Cook for about 1 minute, just until fragrant. Add chicken broth, and scrape any browned bits from the bottom of the skillet.
- Add cream, Italian seasoning, and Parmesan cheese. Cook over medium heat for 5-7 minutes, stirring frequently, until the sauce visibly thickens.
- Stir in spinach and sun-dried tomatoes, and simmer for 1-2 minutes, until spinach wilts.
- Add chicken back to the skillet, spoon a bit of sauce over each piece, and serve with pasta or other sides as desired.
Notes
This is a rich and very flavorful sauce, so even if serving with pasta, we find a little goes a long way, and don't typically coat all of the pasta in sauce as you might want to with, say, a lighter marinara or the like.
Note 1 - If possible, take your chicken breasts out of the fridge and let them rest at room temperature for 10-15 minutes before you start cooking. This helps them to cook more evenly, so the inside is done just as the outside gets nice and browned.
Note 2 - In a pinch, you could sub 1 teaspoon garlic powder for the freshly minced cloves.
Note 3 - If using oil-packed sun-dried tomatoes, drain and try to pat a little bit of the oil off of them before chopping and mixing in with the sauce.
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