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!
No-Bake Lemon Cherry Cheesecake
No-bake is just about right at the moment, with temperatures soaring over 30 degrees in addition to the humidity which steps things up another 10 degrees here in southwestern Ontario. I never mind the heat, really, but even for me, who was freezing to the point of sickness for the duration of a never-ending long Canadian winter, it's a bit much. Perhaps more surprising is that this savory girl wanted to make a dessert in the first place, but sugar in moderation isn't going to hurt you and this cake has some healthy additions besides.This recipe appealed to me in particular because it didn't have a graham cracker base, but a blend of oats, walnuts and dried fruit. The original recipe called for raisins, but I used a combination of dried cherries and cranberries instead. Either way, you are in for a treat, especially when fresh cherries are in season for a wonderful fresh-tasting no-cook cherry sauce served over top.
Easy, rich and creamy no-bake lemon cheesecake with a healthy nut and dried fruit crust served with a delicious fresh no-cook cherry sauce
Base:
- 1 1/2 cups rolled oats
- 1/2 cup walnuts
- 2/3 cup dried cherries
- 1/3 cup dried cranberries
- 1/4 cup grapeseed or canola oil
- 1-inch piece fresh ginger, grated
Cheesecake:
- 8 oz (225 g) cream cheese, room temperature
- 3/4 cup ricotta cheese
- 1/2 cup powdered sugar
- 1 1/2 teaspoons grated lemon zest
- juice from 1 lemon (3 tablespoons)
Cherry sauce topping:
- 1 1/4 cup pitted sweet cherries
- 2 tablespoons honey or agave
- 1 teaspoon pure vanilla
- 1/4 teaspoon almond extract (optional)
- 1/4 teaspoon ground cloves
Instructions:
- Line the bottom of a 9-inch or 10-inch springform pan or cake pan with parchment paper.
- Pulse the oats and walnuts together in a food processor to achieve a fine blend. Add the dried cherries and cranberries, oil and ginger, and continue t pulse until you have a well combined moist mixture. Press this mixture evenly and firmly into the prepared pan. Chill in the refrigerator while you prepare the cheese filling.
- In a large bowl, cream together the cream cheese, ricotta, sugar, lemon zest and juice until smooth. Transfer to the base and spread evenly with a spatula. Chill in the refrigerator for a few hours.
- Next prepare the cherry sauce. Combine the cherries, honey or agave, vanilla, almond extract (if using) and cloves in a food processor or blender and process until smooth. If desired, strain to remove pieces of cherry skin.
- To serve, drizzle some cherry sauce over slices of the chilled cake.
Makes 6 to 8 servings |
