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!
Funfetti Cake Batter Cookie Bars
Funfetti Cake Batter Cookie Bars are so easy to make, loaded with colorful sprinkles, and tastes exactly like cake batter. These will be a hit with everyone.
Ingredientscake batter cookie bars
1 pouch (1 lb 1.5 oz) sugar cookie mix
1 box (15.75 oz) white cake mix
3 large eggs
1 cup (2 sticks) melted butter
1 teaspoon vanilla extract
3 tablespoons rainbow sprinkles
frosting1/2 cup butter, softened
1 1/2 cups powdered sugar
2-4 tablespoons milk (I use 4 tablespoons heavy cream)
1/4 teaspoon almond extract
additional sprinkles for garnish
Instructions
Heat oven to 350 degrees. Spray a 9x13 baking dish with cooking spray or line it with parchment paper. Set aside.
In large mixing bowl, combine the dry sugar cookie mix, dry cake mix, eggs, melted butter, and vanilla extract. Beat with a handheld blender until combined. About 1 minute.
Add in the sprinkles and very gently (so the colors don't bleed) stir in the sprinkles using a wooden spoon or spatula.
Dump the batter into the prepared baking dish and spread out evenly. It helps if you drop it all over the baking dish, instead of just one big pile. Use your hands to help spread it out.
Cook for 30-32 minutes. Edges will be golden brown and the center will look done and slightly puffy. Let cool compeltely, about 1 hour.
To make frosting : Use a handheld blender and beat the butter in a mixing bowl until creamy. Add in the powdered sugar, almond extract, and start with 1 tablespoon milk. Blend together and add additional milk until you get a spreadable consistency. They higher fat milk you use, the more you may need. If you use skim or 1% milk you will need less of it.
Spread the frosting over the cooled cookie bars. Sprinkle some additional sprinkles over top the frosting. Cut into bars right away and serve or they can be refrigerated (if wanted) or left at room temperature, until you serve them.
Recipe Notes
This is a great recipe to change up the sprinkles for different Holidays. Get some Christmas sprinkles and make Christmas cookie bars, or Valentine's Day colors, or Halloween. Lots of ways to change up this recipe.