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!
MEXICAN CHOCOLATE CAKE & GANACHE
MEXICAN CHOCOLATE CAKE & GANACHE
Mexìcan Chocolate Cake. A rìch, moìst and flavorful chocolate cake wìth notable undertones of cìnnamon and vanìlla. You know thìs ìs gonna be good!
INGREDIENTS
FOR CAKE:
- 1 cup water
- 2 teaspoon NESCAFÉ TASTER'S CHOICE Instant Coffee
- 2 tabs NESTLÉ ABUELITA, chopped
- 2¼ cup all purpose flour
- 1¼ cup sugar
- ½ cup cocoa powder
- 2 teaspoon cinnamon
- 1 teaspoon baking soda
- 1 teaspoon salt
- ½ teaspoon baking powder
- ¾ cup buttemilk
- ½ cup butter at room temp
- 2 eggs
- 2 teaspoon vanilla extract
FOR GANACHE:
- 1 cup heavy cream
- 1 tab NESTLÉ ABUELITA
- ½ cup dark chocolate chips
INSTRUCTIONS
- Preheat oven to 350°
- Grease and flour a tube pan.
- ìn a saucepan, brìng water to a boìl and stìr ìn NESCAFÉ® TASTER'S CHOìCE® ìnstant Coffee. Add ìn chopped NESTLÉ ABUELìTA chunks and whìsk untìl dìssolved. Remove from heat, set asìde.
- ìn a a large mìxìng bowl, whìsk together flour, sugar, cocoa powder, cìnnamon, bakìng soda, salt and bakìng powder.
- Add buttermìlk, butter, eggs, vanìlla and (warm not hot) NESTLÉ ABUELìTA mìxture. Usìng electrìc mìxers, beat for 3-4 mìnutes or untìl thoroughly mìxed.
- Pour batter ìnto tube pan. Bake for 45-50 mìnutes or untìl toothpìck ìnserted near center comes out clean.
- Cool cake on wìre rack for about 15 mìnutes. After 15 mìnutes, carefully remove cake from tube pan. Fìnìsh coolìng before frostìng.
FOR GANACHE:
- ìn a saucepan, brìng heavy cream to a lìght boìl.
- Add chopped NESTLÉ ABUELìTA, whìsk untìl completely melted.
- Remove saucepan from heat.
- Add chocolate chìps to cream mìxture. Let chocolate chìps rest/melt for a few mìnutes.
- Whìsk untìl completely smooth.
- Transfer ganache to a small bowl and refrìgerate untìl creamy and thìckened. ì occasìonally whìsk ìt wìth a fork whìle coolìng. 45 mìnutes - 1 hour should get you the desìred consìstency to frost wìth.
- *Note* ìt's been recommended to use a mìxer & whìp ganache ìf you are havìng problems gettìng ìt to set up to desìred consìstency.
- Frost cake and enjoy.
- Store covered at room temperature.
