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!
Chocoflan Impossible Cake
Chocoflan Impossible Cake
By Vianney Rodriguez
Prep Time:
Bake/Cook Time: 1h 10m - 1h 30m
Yield: 8 - 10 servings
Chocoflan or “Impossible Cake” is a popular Mexican dessert that blends a rich chocolate cake layer with creamy flan layer topped with cajeta (dulce de leche) and chopped pecans.
INGREDIENTS
Bundt Pan
- 10 inch deep Bundt pan
- Cooking spray
- 1 cup cajeta or dulce de leche
Cake
- 1 cup (2 sticks) of butter, room temperature
- 1 cup Dixie Crystals Extra Fine Granulated Sugar
- 4 eggs, room temperature
- 2 cups all-purpose flour*
- 1 teaspoon baking powder
- 4 tablespoons cocoa powder
- 1 teaspoon vanilla
- 1 teaspoon orange zest
- 1/4 cup orange juice
Flan
- 1 can (14 oz) sweetened condensed milk
- 1 can (12 oz) evaporated milk
- 3 eggs, room temperature
- 1 teaspoon vanilla
Garnish
- Cajeta or dulce de leche
- Chopped, sliced nuts
*Spoon & Sweep method: Use a spoon to fill measuring cup with flour until required amount is obtained. Scooping measuring cup directly into flour bag will firmly pack flour resulting in too much flour required for recipe.
DIRECTIONS
- Preheat oven to 350° F. Coat Bundt pan generously with cooking spray and coat bottom of pan with cajeta or dulce de leche. 1
- Cake: With an electric mixer or stand mixer blend butter with sugar until it’s light and fluffy, almost white. Whisk in eggs, one at time until well incorporated.2
- Sift together flour, baking powder and cocoa and slowly add to creamed sugar. Mix in orange juice and vanilla and mix until well combined.3
- Pour cake batter into Bundt pan on top of cajeta or dulce de leche.4
- Flan: In a blender, add all ingredients and blend well. Pour flan batter carefully over cake batter.5
- Place a larger cake pan or baking dish in oven and add about 1 inch of water. Then place Bundt pan in water bath. Bake for about 70 – 90 minutes or until a toothpick inserted into cake comes out clean.6
- Allow cake to cool for an hour. When you are ready to serve run a knife around edges of Bundt pan, invert a large rimmed serving dish over Bundt pan, grasp tightly and flip. Sprinkle with pecans and serve alongside additional cajeta or dulce de leche.7
- Note: Store leftovers in fridge for up to 3 days. 8
DIXIE CRYSTALS INSIGHT
NOTE: The flan layer will rise to the top of the cake during baking.
Recipe developed for Dixie Crystals by Vianney Rodriguez @sweetlifebake.com
