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.
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!
PORK CHOPS IN SOUR CREAM GRAVY
Pork Chops in Sour Cream Gravy is one of those very easy recipes that’s an “Oh my gosh” dinner. It’s all in the gravy kids. Take ordinary pork chops and kick them up just by perking up the gravy.
Beef broth, sour cream, onions and Worcestershire Sauce add tons of flavor and make this an extraordinary dinner. I served mashed potatoes with sour cream in them as a side dish. Paul loved it so much he ate the leftovers for BREAKFAST! This is a push your chair back and unbuckle your belt good kinda meal, Enjoy!
Pork Chops in Sour Cream Gravy
- 4 bone in pork chops
- 2 Tablespoons oil
- 2 cups sliced onions
- 1 cup beef broth
- 1/8 Teaspoon pepper
- 1/3 cup sour cream
- 2 Tablespoons flour
- 2 Tablespoons – 1/4 cup milk for thinning gravy
- 2 dashes worcestershire sauce
Place oil in a large saute pan. Place the pork chops in the pan and cook under low to medium heat until browned on both sides. Remove the pork chops from the pan to a plate.
Add onions to the pan, cook until softened. Stir in the beef broth and pepper, return the pork chops to the pan, adding any juices left on the plate. Spoon onions over pork chops, cover and simmer about 12 minutes or until no longer pink in the middle. Remove pork chops and onions from the saute pan to a plate.
In a medium bowl stir the sour cream and flour together. Add to the broth in the pan, whisk until well incorporate. Add the worcestershire sauce to the gravy, stirring to incorporate. If the gravy is too thick, thin it with milk to the consistency you prefer. Place the pork chops and onions back into the pan and cook until pork chops are heated back up. Serve immediately.