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 Oreo Peanut Butter Bars with Chocolate Chips Recipe
No-bake Oreo Peanut Butter Bars with Chocolate Chips Recipe
Ingredients
For the bottom Oreo crust:
- 13 ounce package of whole Oreos about 21 Oreo cookies
- 6 tablespoons butter
For the middle peanut butter filling:
- 4 tablespoons butter
- 1.5 cups crunchy peanut butter about 12 ounces
- 1/2 cup powdered sugar
For the top chocolate topping:
- 2 tablespoons crunchy peanut butter
- 1 cup semi-sweet chocolate chips
- 1/2 cup heavy whipping cream
Instructions
- Make the Oreo crust: Line an 8x8 inch baking dish with foil and butter the sides and bottom. Add Oreos to a food processor and pulse until finely crushed. Using a large mixing bowl, melt butter in a microwave. Add crushed Oreos and mix well. Distribute over the baking dish, pressing it flat over the bottom of the baking dish. Place in the freezer while you work on the next step.
- Make the peanut butter filling: Using a large mixing bowl, melt butter in a microwave. Add peanut butter and sugar. Mix well. Distribute the mixture over the crust. Place in the freezer again while you work on the next step.
- Make the chocolate topping: Add chocolate chips and peanut butter to a large mixing bowl that is heatproof (like glass). Place heavy whipping cream in a small saucepan over medium-low heat, and bring to a simmer. Then pour the cream over the chocolate chips and peanut butter. Mix until completely smooth. Pour this chocolate mix over the filling in the baking dish, spreading evenly. Cover and refrigerate overnight or at least a few hours.
- Serving: Lift up the sides of the foil to remove from the baking dish. Cut into 16 squares.
- Full recipes @ savorytooth.com
