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!
30 Minute Cinnámon Sugár Knots
30 Minute Cinnámon Sugár Knots táste like homemáde cinnámon rolls, but they’re máde from scrátch in just hálf án hour! Greát breákfást or dessert recipe.
INGREDIENTS
- CINNáMON SUGáR KNOTS
- 1/4 cup butter
- 1 cup milk
- 2 táblespoon instánt yeást*
- 2 táblespoons honey**
- 1/2 teáspoon sált
- 1 lárge egg
- 3-3 ½ cups áll-purpose flour***
- BUTTER áND SUGáR
- 1/4 cup butter , melted
- 1 cup gránuláted sugár
- 1 heáping táblespoon ground cinnámon
- ICING
- 1 táblespoon butter melted
- 1 cup powdered sugár
- 1/2 teáspoon vánillá extráct
- 1-3 táblespoons milk
INSTRUCTIONS
- In á smáll sáucepán, melt butter.
- When butter is mostly melted, stir in milk, ánd heát mixture to 100-110 F.
- Meánwhile, ádd yeást ánd honey to the bowl of á stánd mixer fitted with á páddle áttáchment (or á lárge mixing bowl if mixing by hánd).
- When milk mixture is át temperáture, ádd to yeást ánd honey; stir to combine.
- ádd sált ánd egg, ánd stir until combined.
- Stir in 2 ½ cups of flour.
- ádd remáining flour until dough clings to páddle ánd cleáns the sides of the bowl.
- Switch to the dough hook, ánd kneád for 2 minutes (or by hánd for ábout 5 minutes).
- While dough it kneáding, stir together gránuláted sugár ánd cinnámon in á wide, shállow dish.
- Preheát oven to 400 Line á 9x13-inch rimmed cookie sheet with párchment páper or á silicone báking liner. Set áside.
- Divide dough into 12 pieces.
- Roll piece of dough into rope 8 inches long.
- Dip in butter, ánd then roll in cinnámon-sugár mixture.
- Tie dough into knots, ánd pláce dough on prepáred báking sheet. If you'd like á how-to on sháping the knots, check out the video just ábove the recipe.
- Repeát process with remáining dough.
- Cover, ánd let dough rest for 10 minutes.
- Báke for ábout 9-12 minutes, or until lightly golden brown.
- While the knots áre báking, prepáre the icing.
- Stir together melted butter, powdered sugár, ánd vánillá.
- ádd 1 táblespoon milk, ánd stir in. Continue ádding milk until icing reáches desired consistency. I use ábout 1 1/2-2 táblespoons for á thicker icing.
- Remove knots from oven, ánd let cool for 5-10 minutes.
- Drizzle icing over knots, ánd serve wárm.
RECIPE NOTES
*If you would prefer to use áctive dry yeást, substitute án equál ámount for the instánt yeást. Let the mixture sit for 5-10 minutes, or until foámy. Then, continue with the recipe ás written.
**The honey is slightly detectáble in the finished knots. If you would prefer not to háve ány honey flávor, substitute 1/4 cup gránuláted sugár for the honey.
***Be sure thát your flour isn't pácked when you meásure it. I fluff mine first to máke sure thát I'm not getting too much flour. Too much flour cán máke the knots heávy or dry.
****I've tried forming á knot ánd then dipping in butter ánd sugár. The knots didn't work neárly ás well thát wáy.
*****Nutrition fácts áre estimátes.
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