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!
THE VERY BEST CHOCOLATE PUDDING
THE VERY BEST CHOCOLATE PUDDING
Velvety smooth Chocolate Pudding made completely from scratch is a simple treat that everyone will love. Easy to make from whole ingredients and the perfect dessert for any occasion.
I was inspired to make the very best Chocolate Pudding from scratch when I “accidentally” made this Vanilla Bean Pudding. What I didn’t tell you in that post is that…it was kind of an accident. I was testing out recipes for pastry cream…wasn’t paying attention to what I was doing and voila…the Very Best Vanilla Pudding ever. And pretty to boot. So, I decided to make this chocolate version in the hopes that I can make more poke cakes using the Very Best Chocolate Pudding. See…I’m still a trailblazer in the kitchen. It didn’t end at age 8.
I love how easy it is to make the best Chocolate Pudding from scratch and this is definitely an activity you can get the little ones to help with. The pudding requires just a few simple ingredients and is totally egg-free! I use cornstarch as a thickener and throw in a good amount of high quality semi-sweet chocolate. Topped with a bit of whipped cream, this Chocolate Pudding is a dream come true. Serve with a few of these chocolate chip cookies or this chocolate martini. And if you’re looking for something a little less chocolate or vanilla….this BUTTERSCOTCH Pudding is completely amazing!!
The Very Best Chocolate Pudding
Prep Time 10 mins
Cook Time 10 mins
Total Time 2 hrs 20 mins
Servings: 4 servings
Ingredients
- 2 1/2 cups half and half
- 1/2 cupgranulated sugar
- 1/4 cup lightly packed light brown sugar
- 3 tablespoonsunsalted butter I use Plugra European Style Butter
- 1 teaspoon pure vanilla extract I use Nielsen-Massey
- 3 tablespoonscorn starch
- 1/4 cup unsweetened cocoa powder
- 1/2 cup finely chopped high quality semi-sweet chocolate I used Guittard
Instructions
- In a medium saucepan, bring 2 cups of half and half to a simmer (do not boil).
- Add both sugars and vanilla. Cook until the sugar is completely dissolved, stirring constantly to prevent scalding. Stir in the butter until melted. I
- n a small bowl, whisk together the remaining half and half with the cornstarch and cocoa powder. Slowly add the cornstarch mixture to the half and half whisking constantly.
- Continue cooking until the mixture has thickened and coats the back of a spoon.
- Stir in the chopped chocolate until melted. Transfer the mixture to a bowl and cover with plastic wrap being sure the plastic wrap is touching the top of the pudding. (This will prevent a skin from forming.) Refrigerate for 2 hours or up to 24 hours.
Nutrition Facts
The Very Best Chocolate Pudding
Amount Per Serving (1 g)
Calories 0
% Daily Value*
Total Fat 0g0%
Saturated Fat 0g0%
Trans Fat 0g
Polyunsaturated Fat 0g
Monounsaturated Fat 0g
Cholesterol 0mg0%
Sodium 0mg0%
Potassium 0mg0%
Total Carbohydrates 0g0%
Dietary Fiber 0g0%
Sugars 0g
Protein 0g0%
Vitamin A0%
Vitamin C0%
Calcium0%
Iron0%
* Percent Daily Values are based on a 2000 calorie diet.
