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!
Chocolate Peanut Butter Bundt Cake
Here's a cake out there for all of you Reese's Peanut butter Cup lovers. This is rich, dense, moist and DIVINE. My favorite combination is peanut butter and chocolate. They're just so perfect together. And this peanut butter ripple that's in the middle of the cake really reminds me of a peanut butter cup.
So if you're like me and love everything peanut butter and chocolate, you need to try this cake!
Cake:
1 standard size chocolate fudge cake mix 1 package (3.9 oz. - 4 Serving Size) chocolate pudding - DRY MIX 1 cup sour cream 1 cup vegetable oil 4 eggs 1/2 cup warm water 1/2 cup chocolate chips
Peanut Butter Filling:
1 cup creamy peanut butter 1/2 cup powdered sugar 4 tablespoons butter, melted 1 teaspoon vanilla extract Glaze:For Chocolate Glaze: 2/3 cup semi-sweet chocolate chips 1/3 cup heavy cream For Peanut Butter Glaze: 2/3 cup peanut butter chips 1/3 cup heavy cream DIRECTIONS For the cake: 1. Preheat oven to 350 degrees. 2. Combine all of the cake ingredients and mix with a mixer until combined. Do not over mix, but make sure all dry ingredients and wet ingredients are well combined. Stir in chocolate chips. 3. In a separate bowl, combine peanut butter, butter, powdered sugar, vanilla and salt and mix well with a mixer. 4. Spoon half of cake batter into a bundt cake pan that has been sprayed with non-stick cooking spray. Spoon peanut butter filling on top of the cake batter. Top with remaining cake batter. 5. Bake for 50-55 minutes or until toothpick inserted into cake comes out clean. Remove from oven and allow to cool on a wire rack. Remove from bundt pan and allow to cool till not hot. Top with glazes. For glazes: In a large microwave safe bowl combine chopped chocolate and heavy cream. Do the same in a different bowl with the peanut butter chips and heavy cream. Microwave for 30 seconds, remove from microwave and stir well. Return to microwave for another 15 seconds. Remove from microwave and whisk together until smooth (stirring will help melt chocolate). If needed, heat for an additional 15 seconds, then whisk until smooth. Spoon or pour over cake. ENJOY!!
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