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!
JALAPENO POPPER GRILLED CHEESE
Do you like grilled cheese? I absolutely love them. Grilled cheese is the ultimate comfort food. In fact it is a tough contender even against mac n cheese. Although you do have to like a little heat to partake in this beauty. If picked properly jalapenos can be very flavorful with relatively mild heat. Please be sure to read my section on choosing the right jalapenos.
Jalapeno Popper Grilled Cheese is a delectable combination of baked cream cheese filled jalapenos, gooey cheddar, Monterey Jack cheese, and crispy bacon. It is sandwiched between two slices of thick hearty white bread and grilled to perfection.
Top each sandwich with several pats of butter. Place in skillet over medium low heat butter side down. Top with more pats of butter. Now grill each side until lightly browned. Cheese should be melted and gooey.
INGREDIENTS:
- 2 Jalapenos sliced lengthwise seeds and membranes removed
- 4 ounces cream cheese
- 4 slices bacon crispy cooked
- 2 slices monterey jack
- 2 slices sharp cheddar
- 4 slices Italian bread
- Cilantro chopped (optional)
- Pats of butter
INSTRUCTIONS:
- Preheat oven to 375 degrees.
- Stuff each jalapeno half with approximately 1 ounce of cream cheese. Bake stuffed jalapenos on cookie sheet for 25-30 minutes. Remove from oven.
- Place 1 slice each cheddar cheese on 2 bread slices. Place 1 slice each Monterey Jack on 2 bread slices. Each sandwich will have both kinds of cheese. Slice the cooked stuffed jalapenos into bite size pieces. Divide the jalapeno slices between the 2 slices of bread with cheddar. Add the 4 slices bacon to the slices of bread with Monetery Jack. If desired add chopped cilantro to one side. Combine the slices of bread to form 2 sandwiches.
- Top each sandwich with several pats of butter. Place in skillet over medium low heat butter side down. Top with more pats of butter. Now grill each side until lightly browned. Cheese should be melted and gooey.
Recipe Adapted From
JALAPENO POPPER SANDWICH
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