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!
Christmas Star Twisted Bread
Christmas Star Twisted Bread
This gorgeous sweet bread swirled with jam may look tricky, but it’s not. The best part is opening the oven to find this star-shaped beauty in all its glory. —Darlene Brenden, Salem, Oregon
Christmas Star Twisted Bread Recipe photo by Taste of HomeNext Recipe
Total Time
Prep: 45 min. + rising Bake: 20 min. + cooling
Makes 16 servings
Ingredients
- 1 package (1/4 ounce) active dry yeast
- 1/4 cup warm water (110° to 115°)
- 3/4 cup warm whole milk (110° to 115°)
- 1 large egg
- 1/4 cup butter, softened
- 1/4 cup sugar
- 1 teaspoon salt
- 3-1/4 to 3-3/4 cups all-purpose flour
- 3/4 cup seedless raspberry jam
- 2 tablespoons butter, melted
- Confectioners' sugar
Directions
- Dissolve yeast in warm water until foamy. In another bowl, combine milk, egg, butter, sugar and salt; add yeast mixture and 3 cups flour. Beat on medium speed until smooth, about 1 minute. Stir in enough remaining flour to form a soft dough.
- Turn onto a floured surface; knead until smooth and elastic, 6-8 minutes. Place in a greased bowl, turning once to grease top. Cover with plastic wrap; let rise in a warm place until doubled, about 1 hour.
- Punch down dough. Turn onto a lightly floured surface; divide into four portions. Roll one portion into a 12-in. circle. Place on a greased 14-in. pizza pan. Spread with one-third of the jam to within 1/2 in. from edge. Repeat twice, layering dough and jam, and ending with final portion of dough.
- Place a 2-1/2-in. round cutter on top of the dough in center of circle (do not press down). With a sharp knife, make 16 evenly spaced cuts from round cutter to edge of dough, forming a starburst. Remove cutter; grasp two strips and rotate twice outward. Pinch ends together. Repeat with remaining strips.
- Cover with plastic wrap; let rise until almost doubled, about 30 minutes. Preheat oven to 375°. Bake until golden brown, 18-22 minutes. (Watch during final 5 minutes for any dripping.) Remove from oven; brush with melted butter, avoiding areas where jam is visible. Cool completely on a wire rack. Dust with confectioners' sugar.
Editor’s Note: Kickstart the flavor by trying blueberry jam and 1 teaspoon grated lemon peel, or blackberry jam and 1/2 teaspoon cardamom.
Nutrition Facts1 piece: 193 calories, 5g fat (3g saturated fat), 24mg cholesterol, 192mg sodium, 33g carbohydrate (13g sugars, 1g fiber), 4g protein.
Originally published as Christmas Star Twisted Bread in Taste of Home November 2016
