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!
PESTO CAPRESE SANDWICH
PESTO CAPRESE SANDWICH
This recipe is probably my proudest veganized creation. I would even go so far as to say that this can one-up any classic caprese. It was born one day, when I was craving one of my favorites: grilled cheese with tomato. But I hadn’t yet came up with a suitable substitute for the cheese. So, like I do most times when cravings strike, I hit the kitchen.
This vegan sandwich takes the classic caprese sandwich to a whole other level.
Ingredients
For the Cheese:
- ¾ cup of tofu
- ½ cup of soy milk (unsweetened, original)
- 2 tablespoons of nutritional yeast
- Juice of 1 small lemon or ½ large lemon
- 2 teaspoons of apple cider vinegar
- 1 teaspoon of miso
- ½ teaspoon of garlic powder
- ½ teaspoon of salt
- ½ teaspoon of onion powder
- ¼ teaspoon of pepper
- 1 ½ tablespoons of tapioca starch
For the sandwich:
- 4 tablespoons of pesto
- 4 tablespoons of cheese
- 1 tomato, sliced
- 4 slices of bread
Instructions
To make the cheese:
- Add all the ingredients except tapioca starch to a blender or nutri ninja. Blend until completely smooth. At this point, you can taste test and adjust as you like. For acid add lemon juice, for salt add miso or salt, for cheesiness add nutritional yeast.
- Once blended smooth, add the tapioca starch and blend once more until combined.
- Pour cheese mixture into a pan on medium heat and stir constantly. It will start to thicken up quickly. Once it is stretchy and gooey and there is no liquid-y parts, remove it from the heat: your cheese is done!
To make the sandwich
- Spread 1-2 tablespoons of pesto on one slice of bread and 2 tablespoons of cheese on another. Add sliced tomatoes on top of the cheese and add the pesto-covered bread on top of the cheese-covered bread, pesto side down.
- Add the sandwich to a pre-heated pan on medium heat. Cook sandwich for about 2-4 minutes on each side or until toasted golden brown.
- Enjoy!
Notes
Pro tips for expert grilled cheeses:
1. Weigh down your sandwich by placing a plate on top so that that it gets evenly toasted.
2. Heat up your pan for a few minutes before adding your sandwich so both sides cook in the same amount of time.
