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!
PECAN PIE MUFFINS
PECAN PIE MUFFINS
Pecan Pie Muffins with just 6 ingredients are the easiest sweet treat on your dessert table all holiday season long. And they’re even better the next day!
Pecan Pie Muffins are one of my absolute favorite, go to recipes I used to use for clients during the holidays. Every year I’d give my clients holiday gifts or birthday gifts and one of my go to’s was this recipe. Why? Because it is the kind of recipe NO ONE would guess is so easy to make.
This recipe along with others this year is sponsored by Mountain Rose Herbs. They’re a company who prides themselves on providing the best spices and herbs you’re going to buy and they care.
They’re the perfect partner for Dinner, then Dessert. They sell all your basic herbs and spices along with a long list of them you’ve never considered. I can without reservation tell you they’ve sent me the best herbs and spices I’ve ever used.
INGREDIENTS:
- 1 cup packed light brown sugar
- 1/4 cup flour
- 1/2 cup flax meal
- 1 cup chopped pecans
- 2 large eggs
- 3/4 cup butter, cut into small cubes
- 24 pecan halves
DIRECTIONS:
- Preheat oven to 350 degrees and spray the muffin tins with oil or baking spray or add liners.
- Add all but the butter into the stand mixer.
- Mix until eggs are just incorporated.
- Add the butter and mix until some streaks remain but its about half incorporated.
- Scoop into muffin tins and top with two pecan halves.
- Bake for 20-22 minutes.
