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!
Asiago Roasted Garlic Cauliflower Soup
I have been enjoying a lot of soups lately and I just had to share this recipe for an asiago roasted garlic cauliflower soup. This is a super simple soup where you roast up the cauliflower and a few heads of garlic and make a soup with them along with plenty of melted asiago cheese! Other than the time that it takes to roast up the veggies this soup is easy to make and it requires very little hands on time. While the cauliflower is roasting or while the soup is simmering I like to make a crunchy popped quinoa and chia seed topping by toasting quinoa until it pops (like popcorn), along with panko bread crumbs, sesame seeds and chia seeds! The crunchy topping adds a really nice contrast in texture and I like to add lemon zest and parsley to the mix to brighten things up!
A creamy roasted garlic cauliflower soup with plenty of asiago cheese and a crunchy popped quinoa and chia seed topping!
ingredients
- For the soup:
- 1 head cauliflower, cut into florets
- 1 tablespoon oil
- salt and pepper to taste
- 2-4 heads garlic
- 2 teaspoons oil
- 1 tablespoon oil
- 1 onion, diced
- 2 teaspoons thyme, chopped (or 1 teaspoon dried thyme)
- 4 cups vegetable broth or chicken broth
- 1 tablespoon white miso paste (optional)
- 1/2 cup asiago, grated
- 1 tablespoon lemon juice
- For the crunchy topping:
- 1 tablespoon quinoa (raw)
- 2 tablespoons panko breadcrumbs
- 1/2 tablespoon white sesame seeds
- 1/2 tablespoon black sesame seeds
- 1/2 tablespoon chia seeds
- 1/4 cup asiago, grated
- salt and pepper to taste
- 2 teaspoons lemon zest
- 2 tablespoons parsley, chopped
directions
- For the soup:
- Toss the cauliflower in the oil, salt and pepper and arrange in a single layer on a baking sheet.
- Cut the top 1/4 off the heads of garlic, drizzle the oil on top, wrap in foil and place on the baking sheet along with the cauliflower.
- Roast in a preheated 425F/220C oven until the cauliflower is tender and lightly golden brown to a little charred, about 20-30 minutes, mixing the cauliflower half way through.
- Heat the oil in a large sauce pan over medium-high heat, add the onion and cook until tender, about 3-5 minutes.
- Add the thyme and cook until fragrant, about a minute.
- Add the broth, roasted cauliflower and garlic, squeezed from the skins, bring to a boil, reduce the heat and simmer for 10 minutes before pureeing with a stick blender, in a blender or in a food processor.
- Mix in the miso and asiago and heat until the cheese melts into the soup, about a minute.
- For the crunchy topping:
- Heat the quinoa in a pan over medium heat until the quinoa starts popping, and then slows down until there is more than a second between pops, mixing continuously to prevent burning.
- Mix in the breadcrumbs, seeds, asiago and toast for a minute or two.
- Mix in the lemon zest and parsley before serving as garnish on the soup.
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