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!
NO-BAKE NUTELLA CHEESECAKES
It’s no secret that we are a nutella-loving household. But these No-Bake Nutella Cheesecakes have definitely taken the devotion to a new level and may just be the tastiest nutella treat to pass my nutella-loving lips.
Really…could there be anything more brilliant? More satisfying? More delicious? More stinkin’ easy to prepare?
Nope, nope, nope and nope.
So make them. Please. You’ll begin looking at the world in a whole new way. Nutella makes everything more beautiful.
P.S. Aren’t a fan of nutella? Try subbing in peanut butter, the new Bischoff spread (of which I have not partaken yet but have heard rave reviews) or any other creamy, sweet base – the variations are endless.
INGREDIENTS:
CRUST:
- 18 Oreo cookies, crushed into crumbs
- 2 tablespoons butter, melted
CHEESECAKE:
- 12 ounces cream cheese, softened
- 1 cup nutella (chocolate hazelnut spread)
- 1 1/2 teaspoons pure vanilla extract
- 2 cups heavy whipping cream
- 3 tablespoons powdered sugar
GARNISH:
- Extra sweetened whipped cream, optional
- Crushed oreos or chocolate curls, optional
DIRECTIONS:
- In a medium bowl, stir together the Oreo cookie crumbs and melted butter. Evenly divide the crumbs between your individual serving dishes and press into the bottoms of the dishes to form a crust layer. Glass dessert cups work well for this, as well as mini-trifle dishes; you could also use a mini-cheesecake pan or simply small glass bowls.
- In a large bowl, with an electric mixer, beat the cream cheese until light and smooth. Add the nutella and mix until combined and smooth. Add the vanilla and mix to combine. In another medium/large bowl, whip the cream and powdered sugar together until medium to stiff peaks form. Using a rubber spatula, gently fold in the whipped cream into the cream cheese/nutella mixture until well blended and no streaks remain.
- Spoon the filling into individual serving dishes on top of the crust. Cover with plastic wrap and refrigerate until serving, at least 2 hours or up to 8 hours.
- If desired, garnish with additional whipped topping, chocolate shavings, and/or toasted, chopped hazelnuts.
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