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!
Marble Butter Cake
Marble Butter Cake
Marble Butter Cake
Recipe from Nazrah's mother-in-law, Neni Rose, who apparently got it from Kak Aiton.
Yield 1 8-inch round 3-inch high cake in this preparation
Cooking time 1 hour Prep time 30 minutes
Note: You may convert the cake to your available tin size or even bake them in 2 loaf pans. Baking time will vary, I'd checked mine at the 40 minute mark (earlier if using loaf pans). I used salted butter and salt in my cake and didn't find it too salty. The ratio of chocolate versus vanilla batter is really down to your own preference; however it will be easier to achieve a nice marble effect with more vanilla batter so the 3:1 ratio worked well for me. I use two mixers (a KA and a hand held) for this cake - if you only have one, I'd suggest whipping the egg whites by hand and lose some calories you'd gain from the cake in the process.
Ingredients:
- 8 large eggs, separated
- 9 ounces castor sugar
- 12 ounces unsalted butter
- 9 ounces all purpose flour
- 1 1/2 teaspoons baking powder
- 1 1/2 teaspoons pure vanilla extract
- 2 tablespoons good quality cocoa powder
- 1/4 teaspoon salt
Directions:
- Preheat oven at 160°C (convection fan on) with a wire rack in the middle. Line an 8-inch round cake tin with parchment, butter and flour. Sift flour, baking powder and salt in a bowl. Set aside.
- Cream butter in the bowl of a stand mixer fitted with the paddle attachment till light and fluffy. In a separate bowl, whisk the egg yolks with the sugar till light. Gradually add this into the butter and beat on medium speed till just incorporated. In a separate bowl, with a hand mixer, whisk the egg whites till stiff peaks form. With a spatula, fold in the meringue into the egg yolk mixture in 3-4 batches. Add in the dry ingredients gradually until just incorporated.
- Divide the batter into two, 3/4 in one batch and the rest in another bowl. Sieve cocoa powder over the lesser batch and fold to mix well. Pour batter into tin, alternating between the two mixtures, starting with the yellow batter and ending with the cocoa mixture. Rap pan on counter several times to eliminate air bubbles. With a long skewer, swirl around the batter to create the marble effect. Bake for 40-55 minutes or until a tester inserted into the middle of the cake come out clean.
- Cool on wire rack completely before serving. Cake keeps at room temperature up to three days and can be frozen up to 3 months.
- full recipe: http://pickyin.blogspot.com/2011/10/marble-butter-cake.html
