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 CHIP COOKIE PIE
CHOCOLATE CHIP COOKIE PIE
This Chocolate Chip Cookie Pie is a great reason to have a huge cookie baked into a pie shell. A sweet brown sugar and butter chocolate chip cookie batter baked into pie perfection!
This pie is very sweet and dense, so I recommend serving small slices. By the time you add a nice scoop of vanilla ice cream, you will have the perfect dessert that pleases all pie lovers and cookie lovers alike.
This pie is best served warm. Once you add a generous scoop of vanilla ice cream on top and the ice cream starts to melt into the pie, it makes for the perfect bite!
CHOCOLATE CHIP COOKIE PIE
PREP TIME 15 mins
COOK TIME 50 mins
TOTAL TIME 1 hour 5 mins
A sweet brown sugar and butter chocolate chip cookie batter baked into to pie perfection!
Recipe type: Dessert
Serves: 6-8
INGREDIENTS
- 1 unbaked 9-inch deep-dish pie crust
- 2 eggs
- ½ cup all-purpose flour
- ½ cup granulated sugar
- ½ cup packed light brown sugar
- ¾ cup salted butter (room temperature)
- 1 cup semi-sweet chocolate chips
- 1 cup chopped pecans or walnuts
INSTRUCTIONS
- Preheat oven to 325 degrees.
- In a mixing bowl, beat the eggs on high speed until light and foamy. Add the flour and both sugars to the bowl and mix again until combined. Then add the butter and mix until completely combined.
- Stir in the chocolate chips and pecans until incorporated into the batter. Spoon the batter into the unbaked pie crust.
- Bake for 50 to 60 minutes or until a sharp knife inserted halfway between the edge and the center of the pie comes out clean. Cool for around 30 minutes.
- Serve warm with vanilla ice cream.
NOTES
Recipe Source: Allrecipes
