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 Pasta with Butternut Squash and Mascarpone Cheese
A delicious combination of sweet butternut squash, creamy mascarpone cheese, crispy crumbled bacon, and sage infused butter sauce, makes this pasta worth a try!
This pasta has it all: a balanced, nutrient-rich dish that will make you feel happy and satisfied.It has sweet and nutty butternut squash, which is a great source of vitamin C, fibers, magnesium and potassium. It has all the calcium and proteins that you need, from the mascarpone and the parmesan cheese. And the carbs and fibers form the pasta.And then, there is bacon. Sinfully crispy bacon.You can always make this pasta without it. But, what can I say? Dinner should not only be wholesome and balanced, but also fun and tempting. And bacon is an amazing addition to the taste. The sweet and rich flavors of the squash and cheese is really only complete with the crunchy and smoky aroma of the bacon.And note, this recipe is fast and quite easy. A bowl of this pasta will leave you full and happy, so make sure to add it to your list of one-dish dinner recipes.Ingredients: serving 4- 1 lb (450 gr) of butternut squash, cleaned, peeled and cubed
- 5-6 leaves of sage
- 2 tablespoons of unsalted butter
- 4 oz (110 gr) of mascarpone cheese
- 4 tablespoons of freshly grated Parmesan cheese
- 3 slices of bacon, thick cut (optional)
- salt and pepper
- 12 oz (340 gr) of pasta, I used Barilla casarecce pasta
Preparation time: 35 minutesDirections:1. Bring a large pot of salted water to a boil. Peel, clean and cut in cubes the butternut squash. As soon as the water boils, cook the squash for about 5 minutes.2. In a large skillet, melt the butter with the sage. After the 5 minutes remove the squash from the water. Don't throw away the water - you will use it to cook the pasta! Add the squash to the skillet and saute' for another 5-10 minutes until soft.3. Cook the pasta in the boiling water, using the same water you cooked the squash in. And cook the bacon in a separate pan until crispy. Cut the bacon in pieces.
4. Mash some of the squash with a fork, and add the mascarpone to the skillet. Add several tablespoons (a few at the time) of the boiling water to help the cheese melt, and make a creamy sauce. Adjust with salt if necessary.5. Drain the pasta and toss in the skillet with the mascarpone and squash sauce, adding the Parmesan cheese. Sprinkle with pepper.Serve immediately with crumbled crispy bacon on top. Enjoy!
