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 Homemade Vanilla Pudding Recipe
Creamy Homemade Vanilla Pudding Recipe
I’ve tried many, many different recipes for vanilla pudding over the years. Since we’ve acquired laying hens and a family milk cow, I’ve been trying to find recipes that use up the largest amount of those ingredients as possible because let’s face it, vanilla pudding is a whole lot quicker to prepare than an angel food cake (to use up some eggs) or cheese (to use up the milk). Cooling time aside, of course.
The problem always seems to be that I never have a consistency that is appetizing. It’s either very loose and becomes watery after a day or it will have the dreaded egg chunks in it. No matter how thoroughly I seem to temper the eggs, I always get those nasty little bits of cooked egg. Using just yolks never seems to make the tempering go any “smoother.”
While not having bits of cooked egg yolk helps, I’ve learned that the real secret to a smooth pudding is in the thickener. I’ve tried many types and in the end cornstarch wins for achieving the perfect consistency. Arrowroot powder made the pudding smooth, but it was gummy and the texture was what I imagine a frog’s tongue to be like. It was something like a science experiment. Flour gave this pudding a grainy texture. Cornstarch made it smooth as silk.
Creamy Homemade Vanilla Pudding
Vanilla Pudding Recipe
author reformation acres
Ingredients
- ⅔ cup sugar
- ¼ cup cornstarch
- ¼ teaspoon salt
- 2 ⅔ cups milk
- 4 egg yolks
- 4 teaspoons vanilla
Instructions
- In a medium saucepan whisk together the sugar, cornstarch, and salt.
- In a bowl, whisk the egg yolks until smooth and then whisk in the milk.
- Gradually whisk the milk & eggs into the saucepan until well combined.
- After you've whisked in the milk and eggs, stop stirring for a minute and see if any undissolved bits of egg yolk rise to the top. Skim those off with a wire mesh strainer.
- Cook the pudding over medium heat, whisking constantly until it boils and begins to thicken.
- Boil, stirring for 1 minute.
- Remove from heat and stir in the vanilla.
- Spoon into a cups and cover with plastic wrap directly onto of the pudding to prevent the surface from forming a skin.
- Refrigerate until set and cool, maybe 3-4 hours. Or fill a warm, pre-baked pie crust, cover with plastic wrap in the same manner and chill overnight.
