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!
3-INGREDIENT BUTTERY SHORTBREAD COOKIES
Really awesome shortbread is made with just 3 simple ingredients.These buttery shortbread cookies are brimming with delicious melt-in-your-mouth flavors.Dress them up with sprinkles, drizzles, or keep them pure and simple. Absolutely addictive.
Ready or not, Christmas is a quick countdown away. Just to make sure I don’t forget it, the kids are all home for two whole weeks.
We’re neck deep in cookies all over our kitchen and will hopefully continue the trend in the next couple of days. When there are Littles at home and they have friends, sometimes they all come swarming…and cookies disappear in nanoseconds.
We had such fun over the weekend celebrating the holidays early with some family and friends. I can’t count how many kiddos were there. At least fifteen of them, and half of them unapologetically hungry teens.
INGREDIENTS
- 2 cups salted butter, cold and cut into pieces
- 1 cup packed light brown sugar
- 4½ cups all purpose flour, divided
- Optional: Your favorite sprinkles
DIRECTIONS
- Preheat oven to 325F, with rack on lower middle position. Line baking sheets with parchment paper or silicone mats; set aside.
- In the bowl of a stand mixer, add butter and brown sugar. Using paddle attachment on medium-high speed, mix until fluffy and light, several minutes. Add 3½ cups of the flour and mix on medium-low speed until combined.
- On a large board, sprinkle ½ cup flour. Knead dough by hand for 5 minutes, adding as much of the remaining ½ cup flour as needed to make a soft dough. The dough should end up soft and pliable, similar to play-dough, not sticky. Work in desired amount of sprinkles, if using. (You may not end up using all the flour, depending on how your dough feels.)
- Divide dough into thirds, wrap tightly, and chill for at least 30 minutes or until firm enough to roll and cut shapes. Roll one-third of the dough out to about ½ inch thickness (lightly flour board if needed.) Either cut into 3x1 rectangular strips, triangles, or use cookie cutter for shapes. Place each cookie 2 inches apart on baking sheet. Poke cookies with fork to design if not using sprinkles.
- Bake 15-20 minutes, or until edges are golden brown. If your shapes are smaller, bake less time. Bake longer for bigger shapes. Repeat with the remaining dough, working in batches so dough stays chilled and workable.
- Cool completely on wire rack before serving. Cookies keep very when sealed airtight, at room temp.
NOTES
Extra dough can be frozen for up to 2 months. Wrap completely airtight; defrost dough when ready to roll/cut.
