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 CHIP COOKIE S’MORES BARS
What do you get when you put chocolate peanut butter chips, marshmallow fluff and graham crackers between two cookies? Death by delicious. And also chocolate chip cookie s’mores bars.
I just so happened to have two packs of Toll House pre-made chocolate chip cookie dough in my fridge. And when I was brainstorming what I could do with them my mind went back to a photo shoot we had two weeks ago for Toll House at work and the chocolate chip s’mores sandwiches I made.
I’m a social media strategist for my full-time (non-blogging?) career and I’m on the Toll House team. It’s like God knew my heart and merged everything I absolutely love in to one career: social media marketing and baking.
Not to mention I work with insanely smart and creative people every day. I’ve got a pretty cool gig. Then I come home and do the exact same thing for my blog:) It’s a blast!
Ingredients
- 2 packs nestle toll house refrigerated cookie dough
- 2 cups peanut butter filled delightful or milk chocolate morsels
- 1 cup crushed graham cracker crumbs
- 2 cups marshmallow fluff
Instructions
- Preheat oven to 350 degrees. Grease a 9x9 inch pan with non-stick spray. Remove both cookie dough packages from the fridge and let sit for 10 minutes to soften slightly. When it’s ready, unwrap one and spread cookie dough to cover the bottom of the pan.
- Sprinkle chocolate chips or DelightFuls on top of dough. Top with crumbled graham crackers.
- Using a rubber spatula, spread the marshmallow fluff on top of graham crackers. It will be slightly difficult to spread. Spray spatula with non-stick spray to keep from sticking.
- Unwrap second pack of cookie dough and roll out using rolling pin to the size of the 9x9 pan. Lay dough on top of marshmallow layer. May need to piece and move pieces around to completely cover marshmallow.
- Bake for 25-30 minutes or until top dough is cooked and edges slightly brown.
- Allow to cool for 2 hours on wire rack then transfer to fridge to allow to cool for another 2 hours. If bars aren’t completely cool they’ll be too gooey to cut.
- Cut into squares while chilled.
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