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!
French Breakfast Muffins
French Breakfast Muffins
Eat these warm – when warm, these French Breakfast Muffins pretty much just melt in your mouth and it’s heavenly. You will have leftover melted butter and cinnamon sugar but FEAR NOT! Just tear off little pieces of muffin, dip in butter, then in cinnamon sugar, place in mouth and then think “Thank you”!
French Breakfast Muffins
Ingredients :
- 1/3 c. butter, melted
- 1/2 c. sugar
- 1 egg (preferably room temperature)
- 1 1/2 c. all purpose flour
- 1 1/2 tsp. baking powder
- 1/2 tsp. salt
- 1/4 tsp. nutmeg
- 1/2 c. milk
Topping (option: cut topping in half*)
- 1/2 c. sugar
- 1/2 c. butter, melted
- 1 tsp. cinnamon
Directions :
- Preheat oven to 350F.
- In a medium-large bowl, sift together all dry ingredients. Add wet ingredients and stir just until combined, but still a bit lumpy. Do NOT overmix; overmixing will ruin the texture of the finished muffins. Also? Don't overmix the batter. Finally, don't overmix. Scoop batter into muffin tins that have sprayed with cooking spray. Using a large ice cream scoop, I got 8 medium-large muffins out of this batter; I think you could get 10-12 muffins by distributing the batter a little less generously. Bake for 20-25 minutes, or until they just start to turn a bit golden at the edges.
- For the topping, mix sugar and cinnamon in a small bowl. Place melted butter in another small bowl. Dip the warm muffins in melted butter (you can dip just the top, but it's even tastier to dip the whole muffin!), then dip/roll the muffin in cinnamon sugar. *May have left-over topping; the extra topping can be used for dipping, while eating the muffins (oh my). Another option is to cut the topping ingredients in half.
Prep Time:15 minutes-
Cook Time:25 minutes
Yield:8 Large Muffins
Calories per serving: 370 kcal Fat per serving: 20 g Saturated fat per serving: 13 g
Carbs per serving: 44 g Protein per serving: 4 g Fiber per serving: 1 g Sugar per serving: 26 g
Sodium per serving: 219 mg Trans fat per serving: 1 g Cholesterol per serving: 72 mg
Photo credit: VelvetLava.blogspot.com / CC BY-NC-ND
