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!
Strawberry Lemon Olive Oil Naked Cake
Strawberry Lemon Olive Oil Naked Cake
Similar to strawberry lemonade, the sweet strawberries complement the tart and bright lemony flavors of this olive oil cake. It's so clean and refreshing, making it the perfect summer cake for all your gatherings, parties, and weekends.
Strawberry Lemon Olive Oil Naked Cake
MAKES: 12 SERVINGS
PREP: 30 MINS
BAKE: 20 MINS TO 25 MINS 350°F
Strawberry Lemon Olive Oil Naked Cake
Ingredients
- 2eggs
- 1cup (189 grams) sugar
- 2cup (250 grams) all-purpose flour
- 1teaspoon baking soda
- 1teaspoon baking powder
- 1teaspoon kosher salt
- 2/3cup olive oil
- 4teaspoons finely shredded lemon peel
- 1/2cup lemon juice
- 1/2cup buttermilk
- 1teaspoon vanilla
- Fresh strawberries and a few sprigs of mint, to decorate (optional)
Directions
- Preheat oven to 350 degrees F. Grease three 6 x 2-inch round cake pans. Line bottoms of pans with parchment paper; grease the paper. Set pans aside.
- In a large mixing bowl beat the eggs and sugar with an electric mixer about 5 minutes or until pale and thick ribbons form.
- In another large bowl whisk together the flour, baking soda, baking powder, and salt. In a medium bowl combine the olive oil, lemon peel, lemon juice, and buttermilk.
- Beat the vanilla into beaten egg mixture on low speed. With mixer on low speed, add the dry and wet ingredients in three additions, starting with dry and ending with wet. After the last addition, turn mixer off and whisk until combined. Divide batter among prepared pans, filling each half full (1 2/3 cups batter each).
- Bake for 20 to 25 minutes or until a toothpick inserted near the centers comes out clean and cakes are golden and pull away from sides. Remove and cool in pans on wire racks for 10 minutes. Remove from pans. Cool completely.
- To assemble: place one cake layer on a serving plate. Spread top of cake with 1/2 cup of the cream. Place another cake layer on top. Spread with another 1/2 cup cream. Top with remaining cake layer. Spread with another 1/2 cup cream. Spread 1/2 cup frosting on the sides of cake to make a light crumb coating. Spread any remaining frosting atop of cake. Use cake spatula or bench scraper to thin out frosting on sides for the "naked" look, then decorate as desired.
From the Test Kitchen
2-LAYER CAKE
- Divide batter between 2 8x1 1/2-inch round cake pans, filling about each about 1/2 full. Bake in a 350 degrees F oven for 25 to 30 minutes or until a toothpick inserted near centers come out clean. To assemble, place one cake layer on serving platter. Spread with 1 cup of the whipped cream mixture. Top with remaining cake layer. Spread sides with 1/2 cup of the cream, forming a light crumb coating. Spread any remaining cream atop the cake. Garnish with lemon peels, if desired.
TO STORE:
- Loosely cover and store frosted cake in the refrigerator for up to 3 days. OR wrap unfrosted baked cake layers and freeze for up to 1 month. Thaw and frost as directed above.
- Strawberry Cream
- Ingredients
- 1cup heavy cream, cold
- 1/4cup powdered sugar
- 5tablespoons strawberry puree
Directions
- In a large bowl beat cream, sugar, and strawberry puree with an electric mixer or large whisk until soft peaks form. Cover and chill up to 4 hours ahead. Whisk before serving.
