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!
ROASTED STRAWBERRY BANANA BREAD
ROASTED STRAWBERRY BANANA BREAD
This banana bread is moist and delicious, made with white whole wheat flour, sweet roasted strawberries and ripe bananas, with just a smidgen of butter, so you can enjoy a slice without the guilt!
ROASTED STRAWBERRY BANANA BREAD
TOTAL TIME: 75 minutes plus cool time
INGREDIENTS:
- 1-1/4 cups strawberries, diced
- 3 ripe medium bananas, mashed
- 2 tbsp unsweetened apple sauce
- 1 1/4 cups white whole wheat flour
- 3/4 tsp baking soda
- 1/4 tsp salt
- 2 tbsp butter, softened
- 1/2 cup light brown sugar (not packed)
- 2 large egg whites
- 1 tsp vanilla extract
- baking spray
DIRECTIONS:
- Preheat oven to 350°F. Lightly spray a loaf pan with baking spray.
- Place the strawberries on a baking sheet and roast for 25 minutes, remove and set aside.
- In a medium bowl, combine flour, baking soda and salt with a wire whisk. Set aside.
- In a large bowl cream butter and sugar with an electric mixer.
- Add egg whites, bananas, apple sauce and vanilla, and beat at medium speed until thick. Scrape down sides of the bowl.
- Add flour mixture and blend at low speed until combined, do not over mix.
- Fold in strawberries and pour batter into the prepared loaf pans; bake in the center rack for about 50 minutes, or until a toothpick inserted in the center comes out clean.
- Let the pan cool at least 20 minutes, bread should be room temperature before slicing.
NUTRITION INFORMATION
Yield: 16 servings, Serving Size: 1 slice
Amount Per Serving:
Freestyle Points: 3 Points +: 2 Calories: 88 calories Total Fat: 2g Saturated Fat: g
Cholesterol: 4mg Sodium: 111mg Carbohydrates: 19g Fiber: 2g Sugar: 10g Protein: 2g
All images and text ©Gina Homolka for Skinnytaste
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