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!
Creamy Mashed Potatoes Recipe
Creamy Mashed Potatoes Recipe (VIDEO)
This creamy mashed potatoes recipe is shockingly good! It is absolutely Thanksgiving and Christmas worthy. The folks at your holiday table will swoon over these whipped potatoes!
Creamy Mashed Potatoes Recipe
Prep Time: 15 minutes
Cook Time: 25 minutes
Total Time: 40 minutes
These creamy mashed potatoes are shockingly good! Velvety and holiday worthy mashed potatoes.
Author: Natasha of NatashasKitchen.com
Skill Level: Easy
Cost to Make: $4-$6
Keyword: mashed potatoes, mashed potatoes recipe
Calories: 401 kcal
Servings: 8 as a side dish
Ingredients
- 4 lbs (12 medium) russet potatoes, peeled
- 1 1/4 cups hot milk we used whole milk
- 16 Tbsp unsalted butter (2 sticks) at room temperature (not melted)
- 1 1/2 tsp salt or to taste (we used sea salt)
- 1 Tbsp fresh parsley or chives finely chopped for garnish (optional)
US Customary - Metric
Instructions
- Peel potatoes (cut potatoes in half if very large). If you want the smoothest potatoes possible, remove the little knots from the potatoes with a small spoon or the tip of a potatoes peeler. Place potatoes in a large pot (5 Qt+) and cover potatoes with cold water. Bring to a boil and cook partially covered until easily pierced with a knife (boil 20-25 min depending on the size of your potatoes; mine took 22 min).
- Drain well and transfer to the bowl of your stand mixer. Grab the whisk attachment and mash potatoes lightly by hand to break them up. Fit mixer with whisk attachment and start on low speed 30 sec then increase to medium and slowly drizzle in the HOT milk.
- With mixer on, add softened butter 1 Tbsp at a time, waiting a few seconds between each addition. Potatoes will be whipped and fluffy. Finally add 1 1/2 tsp salt, or add to taste.
Recipe Notes
To keep mashed potatoes warm until serving: cover potatoes and place into a warm oven or transfer to a slow cooker on the low setting to keep potatoes warm until ready to serve.
