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!
STRAWBERRY TRIPLE LAYER CAKE
STRAWBERRY TRIPLE LAYER CAKE
Our Easy Strawberry Triple Decker Cake Recipe is an absolute showstopper. Loaded with Fresh Strawberries, this Homemade Southern Delight is guarentted to be a hit! Super Moist, Rich and Really Sweet, all topped with Strawberry Buttercream Frosting!!
INGREDIENTS
CAKE INGREDIENTS:
- 1 Box White Cake Mix
- 1- 3 Ounce Box Strawberry Jello
- 4 Large Eggs
- 1/2 Cup Sugar
- 1/4 Cup All-Purpose Flour
- 1/2 Cup Fresh Strawberries Finely Chopped
- 1 Cup Vegetable Oil
- 1/2 Cup Milk
STRAWBERRY BUTTERCREAM FROSTING:
- 1 Cup Unsalted Butter Softened
- 2 16 Ounce Packages Powdered Sugar
- 1 Cup Fresh Strawberries Finely Chopped
INSTRUCTIONS
- Make the Cake: Preheat the Oven to 350 degrees. Line 3- 9-inch cake pans with parchment paper and spray with nonstick cooking spray (I prefer the Baking nonstick cooking spray that contains flour). Set aside.
- In a large bowl, mix all cake ingredients with an electric mixer on low until just combined. Scrape the side of the bowl, and increase mixer to medium and beat for 3 minutes.
- Pour cake batter into prepared pans and bake until a toothpick inserted into the center of the cakes comes out clean, about 23 minutes.
- Cool cake in pans on a rack for about 10 minutes. Remove from pans and cool completely. If using the following recipe for Strawberry Buttercream refrigerate cakes until completely chilled.
- Meanwhile, Make Frosting: In a large bowl, beat the butter at medium until it's pale yellow and fluffy. Add powdered sugar and strawberries and beat at low until well combined and creamy. Set in the fridge for about 5-10 minutes to firm it up slightly (You just don't want it to be runny).
- Spread one of the layers of cake with frosting then refrigerate. Frost the second layer and refrigerate until the frosting on both layers has firmed up a bit. Assemble all the layers and frost the top and sides. Refrigerate!
