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 STRAWBERRY FROZEN YOGURT BITES
CHOCOLATE STRAWBERRY FROZEN YOGURT BITES
My Chocolate Strawberry Frozen Yogurt Bites are perfect for when you just need a little treat at the end of the day. Creamy yogurt mixed with fresh strawberries, swirled with chocolate and frozen atop a “crust” of granola, they’re a treat you’ll want in your freezer all summer long!
My Chocolate Strawberry Frozen Yogurt Bites are perfect for when you just need a little treat at the end of the day. Creamy yogurt mixed with fresh strawberries, swirled with chocolate and frozen atop a “crust” of granola, they’re a treat you’ll want in your freezer all summer long! (makes 4 "bites")
Ingredients
- ½ cup plain Greek yogurt (full fat or 2%)
- ¼ cup dark chocolate chips
- ¼ cup diced fresh strawberries
- ¼ cup gluten free granola*
Instructions
- Use a silicone cube tray (mine was 1.5” cubes). Drop 1 Tbs of granola into the bottom of 4 of the squares. Make sure it is in an even layer in the bottom.
- Melt your chocolate chips. I microwaved mine in 30sec intervals until melted and smooth. Swirl a tiny bit of chocolate on top of the granola layer (I did this to add a binding layer of chocolate before the yogurt. I used maybe ½ tsp of chocolate per square.)
- Next, in a bowl, stir together the yogurt and strawberries. Add almost all of the rest of the chocolate, reserving a couple teaspoons to use on top. Give the yogurt one or two quick stirs, so the chocolate swirls in but isn’t fully combined. Divide the yogurt among the 4 cubes on top of the granola layer, pressing it down as you fill so everything is compacting.
- Finally, swirl on the last of the chocolate on top of the squares.
- Freeze for a few hours, until firm. I froze mine for 4 hours before removing them.
- Pop the cubes out of the mold and enjoy! You can keep extras in an air-tight freezer bag in the freezer.
Notes
*Use granola that doesn’t have fruit in it, like my Oatmeal Cookie Granola without the raisins or LOVE Grown Foods Cocoa Goodness Granola! I used a mix of both.
