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!
Healthy 20 Minute Sheet Pan Sausage and Veggies
Sausage, sweet potato, broccoli, and bell peppers seasoned with olive oil, garlic, Italian seasoning and roasted to perfection. This quick 20-minute meal is a low-carb, healthy and packed full of flavor dinner option that is also great for meal-prep too!
Sheet pan dishes have become my favorite and most exclusive way to cook most meat and veggies. They’re quick, easy, healthy and best of all, they’re effortless. Just one pan and no dishes to clean? I’m in!
In the past few years, I’ve shared many easy sheet pan recipes and this one is another favorite of mine. It’s very similar to the popular 15-minute chicken and veggies dish but instead of chicken, we’re switching things up a bit and opting in for sausage.
Ingredients
- 12-16 ounces Smoked Turkey or Chicken Sausage (about 3 cups)
- 2 cups sweet potato, diced into ½'' cubes
- 2 cups broccoli florets
- 1 cup bell pepper, chopped (any colors you like)
- 2 cloves garlic minced
- 2 tablespoons olive oil
- 1 tablespoon Italian seasoning (or taco, Cajun of your favorite spice blend!)
- ½ teaspoon salt
- ½ teaspoon black pepper
Instructions
- Pre-heat oven to 400F.
- Slice the sausage into 1'' rounds. Dice the sweet potatoes into small ½'' cubes.
- Add the sausage, veggies and minced garlic to a large baking sheet. Drizzle with olive oil and sprinkle with the Italian spices or your favorite spice blend. Seasoning with salt and pepper. Toss veggies with your hands until they are fully combined and coated with olive oil and spices.
- Bake for 20 minutes, flipping halfway. Enjoy with rice, quinoa, in sandwiches or as is for weight loss!
Notes
Other veggies that are also great in this dish include zucchini, asparagus, green beans, brussels sprouts, grape tomatoes, onion, and carrots.
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