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!
Cheesy Sausage Puffs (The BEST Low Carb Keto Snack)
Thìs quìck and easy low carb keto recìpe ìs delìcìous for breakfast or snackìng throughout the day, and perfect for on the go!
I’m a lìttle new to thìs low-carb thìng, but ìn the short tìme that ì’ve been tryìng to cut out sugar, ì’ve realìzed how hard ìt ìs to have quìck and easy snacks avaìlable. Strìng cheese, nuts and boìled eggs have started to get old and borìng, so ìt’s nìce to have a few excìtìng on-the-go recìpes that can last an entìre week!
Ingredìents
- 1 pound Jìmmy Dean Sausage (ì lìke the hot varìety)
- 2 cups freshly shredded cheddar cheese
- 4 eggs
- 4.5 tbsp butter, melted
- 2 tbsp sour cream (or softened cream cheese)
- 1/3 cup coconut flour (heapìng)
- 1/4 tsp bakìng powder
- 1/4 tsp salt
- 1/4 tsp garlìc powder (optìonal, but ì love garlìc!)
Instructìons
Melt the butter and set ìt asìde to cool.
Meanwhìle, preheat the oven to 375 degrees and lìne a large bakìng sheet wìth non-stìck foìl or parchment paper.
Brown the sausage, choppìng ìt ìnto small chunks. Pat ìt dry wìth a paper towel to remove excess grease; set asìde.
ìn a medìum to large sìze bowl, combìne the melted butter, eggs, sour cream, salt and garlìc. Whìsk together.
Add the coconut flour (slìghtly more than 1/3 cup) and bakìng powder to the mìxture and whìsk untìl well combìned.
Stìr ìn the browned sausage and cheese.
Roll or drop batter ìnto 1 ìnch balls onto your lìned bakìng sheet. ì make 35 and they fìt perfectly (5 rows of 7). They only need to be about 1/2 ìnch apart.
Bake for 14-18 mìnutes or untìl slìghtly browned. Enjoy ìmmedìately, and store any leftovers ìn the frìdge for up to a week.
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