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!
PINK LEMONADE VODKA SLUSH
PINK LEMONADE VODKA SLUSH
It only takes 3 ingredients to make this easy Pink Lemonade Vodka Slush! This Midwestern classic is great for the holidays, showers, and cocktail parties! Watch the video below to see how easy it is!
When I was growing up, this is the Vodka Slush my mom always made.
I remember it from neighborhood block parties, bridal showers, Christmas, and that one time we threw a surprise party for my dad. (How old did he turn that year, Mom? I have no idea! I just remember I was equally surprised!)
One piece of “special equipment” is required, though. You need a 1-gallon ice cream pail
Let me tell you how easy this Pink Lemonade Vodka Slush is to make.
First, eat all the ice cream in your ice cream pail. (Just kidding! I’m sure you already did that!)
Combine pink lemonade concentrate (the frozen kind, but thawed) with 2 cups of vodka and a 2-liter bottle of your favorite citrus soda. I love 50/50 (if I can find it), Squirt, or even Sprite. Stir and freeze.
Then, just pull it out and hour or two before you want to serve it. Once it starts to thaw and melt, you can scrape the slush into your glass.
Just top with extra soda and you’re good to go! I’ve also topped mine with carbonated water and it tastes great. So refreshing.
Make this for Christmas, New Year’s Eve, Valentine’s Day, your next birthday, any bridal shower, or even a sassy baby shower. Nothing could be easier to make and your guests are going to love it!
SAVE THIS PINK LEMONADE VODKA SLUSH TO YOUR “DRINKS” PINTEREST BOARD!
And let’s be friends on Pinterest! I’m always pinning tasty recipes!
Pink Lemonade Vodka Slush
It only takes 3 ingredients to make this easy Pink Lemonade Vodka Slush! This Midwestern classic is great for the holidays, showers, and cocktail parties!
Course Drinks
Cuisine American
Cook Time 8 hours 5 minutes
Total Time 8 hours 5 minutes
Servings 12 servings
Calories 116 kcal
Ingredients
- 1 (12 ounce) can frozen pink lemonade concentrate thawed
- 2 cups vodka
- 1 (2 liter) bottle lemon-lime soda such as Squirt, 50/50, or Sprite
- Additional soda or sparkling water for serving
Instructions
- In an empty one-gallon ice cream pail, combine lemonade concentrate, vodka, and 2 liter bottle of soda. Chill at least 8 hours, overnight, or up to a month in advance.
- Remove from freezer 1 - 2 hours before serving. As the slush melts, it will become easier to scrape and serve.
- To serve, add 1 cup slush to a glass. Top with additional soda or sparkling water as desired.
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