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 BEST CLASSIC CANADIAN BUTTER TARTS
THE BEST CLASSIC CANADIAN BUTTER TARTS
The Best Classic Canadian Butter Tarts. There’s a reason why we have a national obsession with these sweet, buttery, caramel-y tarts. I’ve sampled them in many places across the country and this thick pastry version is my favourite. Don’t do the raisin debate, just leave them out if they are not your thing. Everyone should be able to enjoy them as they like them.
Ingredients
For the Pastry
- 2 ¼ cups flour pastry flour is best to use but all-purpose will do
- 1 tbsp brown sugar
- ½ tsp salt
- 1/2 cup shortening Very cold and cut in cubes
- 1/2 cup butter Very cold and cut in cubes
- 6 tbsp ice water approximately, enough to bring the dough together
For the Filling
- 1/2 cup lightly packed brown sugar
- 1/2 cup corn syrup
- 1/4 cup butter melted
- 1 egg
- 1 tsp vanilla extract
- 1/4 tsp salt
- ½ cup raisins substituting, pecans, walnuts or chocolate chips also make good variations
Instructions
- To prepare the pastry
- Pulse the cold butter and shortening into the flour sugar and salt using a food processor until the shortening or butter is reduced to pea sized pieces.
- Sprinkle the water over the surface and toss with a fork until the water is just incorporated into the dough. Do not over work the dough; handle it only enough so that the dough stays together.
- Form the dough into two rounds about an inch thick.
- Wrap in plastic wrap and let rest in the fridge for about a half hour.
- Roll out on lightly floured surface. Cut into rounds with 4 inch cutter. Fit into muffin cups. Chill in the fridge or freezer while you prepare the filling. Cold pastry heading into a hot oven will always be flakier.
- To make the filling
- Combine all filling ingredients except raisins.
- Mix well.
- Sprinkle raisins in a single layer in the bottom of the pastry lined muffin cups.
- Fill 2/3 full with syrup mixture.
- Bake on bottom shelf of oven at 425 degrees F for 12 to 15 minutes.
- Cool completely on a wire rack and remove tarts from from pans.
Recipe Notes
There is considerable debate about whether the filling in a butter tart should be runny or firm. Preferences vary, especially geographically but if you want a firmer, less runny filling simply add an additional egg, increase the brown sugar to 3/4 cup and decrease the corn syrup to 1/4 cup.
