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!
CHOCOLATE PEANUT BUTTER DIRT CAKE – LOW CARB AND GLUTEN-FREE
A remake of the summer classic, this low carb dirt cake recipe will blow your mind! Crumbly chocolate cookie crust with layers of creamy peanut butter filling and chocolate pudding. Gluten-free and grain-free.
Ingredients
Crust:
- 1 1/4 cup almond flour Honeyville
- 5 tbsp cocoa powder
- 5 tbsp powdered Swerve Sweetener
- 3 1/2 tbsp tbsp butter melted
Peanut Butter Layer:
- 3/4 cup whipping cream divided
- 1/4 tsp liquid stevia extract
- 8 oz cream cheese softened
- 3/4 cup peanut butter
- 1/2 cup powdered Swerve Sweetener
Chocolate Pudding Layer:
- 1 cup unsweetened almond milk
- 1 cup whipping cream
- 1/2 cup powdered Swerve Sweetener
- 4 egg yolks
- 1/2 tsp xanthan gum
- 1/4 cup cocoa powder
- 1 1/2 oz unsweetened chocolate chopped
- 3 tbsp butter in 3 pieces
- 1/2 tsp vanilla extract
Instructions
Crust:
- In a medium bowl, whisk together almond flour, cocoa powder, and sweetener. Add melted butter and stir until well combined.
- Remove about 1/4 cup of crust mixture and set aside.
- Press remaining crust firmly and evenly into the bottom of a 9 inch springform pan.
Peanut Butter Layer:- In a large bowl, whip 1/2 cup of the whipping cream with the stevia extract until it holds stiff peaks.
- In another large bowl, beat cream cheese with powdered sweetener until smooth. Beat in peanut butter and remaining whipping cream until well combined.
- Gently fold in whipped cream until combined.
- Spread peanut butter mixture carefully over crust. Refrigerate while preparing pudding layer.
Chocolate Pudding Layer:
- In a medium saucepan over medium heat, combine almond milk, whipping cream and sweetener. Bring to a simmer, stirring to dissolve sweetener.
- In a bowl, whisk egg yolks until smooth. Slowly whisk about 1/2 cup of the hot cream mixture into the yolks to temper. Then slowly whisk tempered yolks back into saucepan.
- Reduce heat to medium low and sprinkle surface with xanthan gum, whisking vigorously to combine. Whisk in cocoa powder and cook until thickened, about 3 or 4 minutes.
- Remove from heat and stir in chopped chopped chocolate and butter until smooth. Stir in vanilla extract.
- Let cool about 15 minutes and then spread evenly over peanut butter layer. Sprinkle with reserved crust ingredients.
- Refrigerate until set, at least 3 hours. To serve, run a sharp knife around the inside of the pan and remove sides. Run the knife under hot water to cut nice even slices.
Recipe Notes
Serves 16. Each serving has 8 g of carbs and 3 g of fiber. Total NET CARBS = 5 g.
335 Calories; 32g Fat (81.8% calories from fat); 8g Protein; 8g Carbohydrate; 3g Dietary Fiber; 115mg Cholesterol; 162mg Sodium.
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