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!
Salted Caramel Fudge Cups
Salted Caramel Fudge Cups
Caramel and chocolate come together to make one incredibly delicious treat! With just four ingredients, these Salted Caramel Fudge cups are soft, gooey, sweet and really easy to make!
These Salted Caramel Fudge Cups are really easy to make. They’re wonderful for the holidays, and the perfect addition to any Cookie & Candy tray, great for holiday parties, and a wonderful treat to give to friends and neighbors. These would also be fantastic with a cup of hot chocolate on a cold night!
SALTED CARAMEL FUDGE CUPS RECIPE
Caramel and chocolate come together to make one incredibly delicious treat! With just four ingredients, these Salted Caramel Fudge cups are soft, gooey, sweet and really easy to make!
Ingredients
- 1 (13 oz.) pkg, caramels
- 1 c. semi-sweet or dark chocolate chips
- 1/2 c. heavy cream
- coarse or flake sea salt
Instructions
- With non-stick cooking spray, generously spray a mini-muffin tin. Or place mini-muffin liners in each cup. (Liners are recommended if these candies will be at room temperature on dessert trays or for holiday gifts or treats, as they will help the caramels hold their shape.) You'll be preparing approximately 18-20 cups. Set aside.
- Add the chocolate chips to a bowl. In a small sauce pan, bring the heavy cream to a low simmer. Remove from heat right away and pour the hot cream over the chocolate chips. Stir continually until all the chocolate and cream has combine and the chocolate is completely melted. Add a heaping teaspoon to each of the muffin cups, filling each cup about half way. Put the pan in the refrigerator to cool.
- While cooling, melt the caramels. In a microwave safe bowl, unwrap all the caramels and add about 1 Tbsp. of water to help the melting process. Heat the caramels for 1 minute at 50% powder. Stir and heat again for 1 minute at 50% power. Stir again. Repeat the process until the caramel is completely melted.
- Take the chocolate out of the fridge. While the caramel is still hot begin adding a heaping teaspoon full of caramel to each fudge cup. It should fill the cup to the top. Work quickly as the caramel will cool and become stiff. While the caramel is still warm, add a sprinkle of salt flakes/granules to each caramel cup. Refrigerate and let come to room temperature just before serving.
