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!
Pumpkin Cheesecake Cookies
Pumpkin Cheesecake Cookies
These Pumpkin Cheesecake Cookies are quick to make and will please any pumpkin lover. A soft creamy center with a graham cracker coating- these are the perfect treat!
These cookies are so good! I love making them because I can mix them up in about 5 minutes, the dough doesn’t need any time in the fridge to chill, and they taste so amazing! They are a fun twist on cheesecake and so different than any other pumpkin dessert.
Chewy, dense, creamy, with just the right spices. It’s also great for when you have just a little pumpkin left at the bottom of the can after making another recipe. Don’t throw it out- use it for these delicious cookies! These are best served straight from the fridge, just like regular cheesecake. That means they’re perfect to make ahead and keep until you’re ready to serve or eat them.
Pumpkin Cheesecake Cookies Recipe
These Pumpkin Cheesecake Cookies are quick to make and will please any pumpkin lover. A soft creamy center with a graham cracker coating- these are the perfect treat!
INGREDIENTS
- 8 ounces cream cheese, room temperature
- 1/2 cup butter, room temperature
- 1/2 cup canned pumpkin (not pumpkin pie mix)
- 1 1/2 cups granulated sugar
- 1 teaspoon vanilla
- 2 cups flour
- 1/2 cup graham cracker crumbs
- 1 1/2 teaspoons pumpkin pie spice
- 1/2 teaspoon cinnamon
- 1/2 cup graham cracker crumbs (for rolling the cookies)
- 1/4 teaspoon pumpkin pie spice (optional)
DIRECTIONS
- Preheat the oven to 350° and line 2 sheet trays with parchment paper.
- In a large bowl, stir together cream cheese, butter, and pumpkin until completely smooth.
- Add in the sugar and vanilla and stir until combined.
- Add the flour, 1/2 cup graham cracker crumbs, pumpkin pie spice, and cinnamon. Carefully mix until it is completely mixed and smooth.
- Scoop into balls and roll in the remaining graham cracker crumbs (with the pumpkin pie spice mixed in if desired).
- Place on the tray and bake for 15 minutes. Remove and slightly press down so they are flat.
- Bake for 3 more minutes.
- Repeat with remaining dough.
- Let cool and store in the fridge. These are best served cold, just like regular cheesecake.
