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!
SOFT AND CHEWY TRIPLE CHOCOLATE FUDGE COOKIES
A chocolate lover’s dream come true, these chocolate fudge cookies are soft, slightly chewy and packed with over a pound of chocolate! That’s over 1 ounce of chocolate in each cookie!
I love anything chocolate. The more the merrier. And not just quantity speaking, but richness also! You know what I’m talking about, those chocolate treats that you need a glass of milk near by.
That’s the case for these chocolate fudge cookies. At first I wanted to name them chocolate brownie cookies, but they are so rich and decadent, way, way better than the brownie cookies I’ve previously made. Those are still good, but these will make you weak at the knees.
These triple chocolate fudge cookies are fudgy, rich, intense, and decadent. The edges are chewy, the center is gooey and every bite is oozing with melted chocolate!
A chocolate lover's dream come true, these chocolate fudge cookies are soft, slightly chewy and packed with over a pound of chocolate! That's over 1 ounce of chocolate in each cookie!
Ingredients
- 8 oz (226 grams) semisweet baking chocolate, chopped
- 6 (84 grams) tablespoons butter
- 2 Safest Choice™ Pasteurized Eggs
- 3/4 cup (150 grams) Imperial Sugar® brown sugar
- 1 teaspoon vanilla extract
- 1 1/3 cups (160 grams) Gold Medal Flour® all-purpose flour
- 1/4 teaspoon baking powder
- 1/3 cup (30-40 grams) chopped nuts
- 4 oz (113 grams) chocolate chips or chunks
- 1 cup (160-170 grams) chocolate chips or chunks
Instructions
- In a heatproof bowl, melt 8 ounces of chocolate and butter in the microwave or a double boiler. If you choose to use the microwave, take the bowl out every 30 seconds and give it a gentle stir. Doing so, there are less chances you’ll burn the chocolate.
- While the chocolate is melting, in a mixing bowl, beat together 2 eggs, sugar, and vanilla until pale and creamy, for about 5 minutes at medium speed. The mixture thickens up and become slightly frothy.
- Stir the melted chocolate into the egg mixture and gently stir in the flour and baking powder.
- With a spatula, fold in the chopped nuts and 4 ounces of chocolate chips or chunks.
- Place the mixing bowl in the fridge and chill for 30 minutes.
- Once the cookie dough is somewhat harden, using a large ice-cream scoop, drop cookie dough on a baking wheel lined with parchment paper.
- Refrigerate the scooped cookie dough for at least 2 hours before baking.
- Heat the oven to 350F.
- Just before baking dot the cookies with the remaining 1 cup of chocolate chips and chunks. Alternately, you can do this step once the cookies are baked.
- Bake the cookies for exactly 16 minutes.
- Remove the baking sheet for the oven and let cool on a wire rack
