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!
Soft Amaretti Cookies
Amaretti cookies are a moist & chewy classic Italian cookie.This is the best ever gluten free recipe for Soft Amaretti Cookies.You are going to love them.
There are infinite variations of this classic Italian cookie. I'd like to share this simple, gluten free recipe for Soft Amaretti Cookies with all of you.
Ingredients
- 250 grams almond flour scant 2 1/2 cups
- 200 grams sugar approx 1 cup
- lemon zest of one medium lemon
- 3 egg whites
- 1 teaspoon bitter almond extract
- extra granulated sugar for rolling sprinkle 1/3 cup in a large dinner plate, set aside
Instructions
- Preheat oven to 325° F. Position rack in the center.
- Line large baking sheet with parchment paper.
- In a large bowl, whisk almond flour and sugar together.
- Add grated lemon zest and whisk a few more times. Set aside.
- In a separate bowl, whisk egg whites to a soft peak stage.
- Whisk in the bitter almond extract.
- Gently incorporate the egg whites to the dry ingredients. Once the dough is completely moist, you are done.
- Use the smallest ice cream scooper to portion the dough (about 1 tablespoon).
- With slightly damp hands, press your palms into the plate of sugar.
- Roll each ball of dough with your sugar coated palms and then again in the sugar found on the plate.
- Place on the paper lined baking sheet.
- Bake for about 25 minutes or until bottoms are golden brown in color.
- Cool before storing at room temperature in airtight containers. Will keep for 3-4 days.
Recipe Notes
Some recipes will recommend using super fine sugar. I use granulated sugar and am very happy with the results.
Please keep in mind that the nutritional information provided below is just a rough estimate and variations can occur depending on the specific ingredients used.
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