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!
4 LAYER PEANUT BUTTER CHEESECAKE BROWNIES
4 LAYER PEANUT BUTTER CHEESECAKE BROWNIES
What’s killing me? I totally had the whole post for these Four Layer Peanut Butter Cheesecake Bars totally written in my mind last night. And now I can’t remember the funny story I was going to tell you!
PEANUT BUTTER CHEESECAKE BROWNIES
yield: 20-24 SQUARES
total time:1 HOUR 45 MINUTES PLUS COOLING
These Peanut Butter Cheesecake Brownies are a showstopper dessert! They’re dense, fudgy, peanut buttery, full of cheesecake, and they’re GORGEOUS! Great for giving and parties or just because you want peanut butter, cheesecake, and brownies!
INGREDIENTS:
- 3/4 cup unsalted butter
- 1 package (about 11 ounces) bittersweet/dark or semi-sweet chocolate chips
- 1/2 cup light brown sugar, packed
- 3/4 cup granulated sugar, divided
- 5 large eggs, divided
- 2 teaspoons vanilla extract, divided
- 3/4 cup + 1 tablespoon all purpose flour
- 1/4 cup unsweetened cocoa powder
- 1/4 teaspoon kosher salt
- 2 (8 ounce) packages cream cheese, room temperature
- 1/3 cup creamy peanut butter
- 2 tablespoons sour cream or plain greek yogurt
DIRECTIONS:
- Preheat oven to 350°F. Line a 9×9” square pan with foil or parchment paper and spray with nonstick cooking spray.
- Make the brownie batter: place butter and 1 3/4 cups of the chocolate chips in a large microwave safe bowl. Heat for 1 minute on high power, stir. Continue heating in 30 second increments, stirring between each, until chocolate is melted and smooth. Stir in brown sugar and 1/2 cup granulated sugar. Stir in 3 eggs and 1 teaspoon vanilla extract, then add 3/4 cup flour, cocoa powder, and salt and mix until smooth. Set aside.
- Make the cheesecake batter: beat cream cheese with a hand or a stand mixer until smooth and creamy. Add peanut butter, 1/4 cup sugar, and sour cream or greek yogurt. Mix until smooth, then add 1 teaspoon vanilla, 1 tablespoon flour, and remaining 2 eggs. Beat until smooth without lumps.
- Spread half the brownie batter in the prepared pan. It’s a thick batter but should spread easily with a wooden spoon or spatula. Place half the cheesecake mixture over the top and spread carefully. If you have an offset spatula, that makes spreading this layer easier. Top with remaining brownie batter and then the remaining cheesecake to create 4 layers. Sprinkle with remaining chocolate chips.
- Bake for 45-55 minutes until the edges start to get golden and the center is set. Cool completely at room temperature. Chill to set, at least 2 hours or overnight. Cut into small bars and serve. This cheesecake is very rich and a little goes a long way! Store in an airtight container in the refrigerator for up to 3 days or freeze for up to 1 month. (http://www.crazyforcrust.com)
