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!
Spiced Vegan Lentil Soup
Spiced Vegan Lentil Soup
This soup recipe has been a long time coming! Over the years, I’ve made some lackluster lentil soups that never saw the light of day on this website. No vegetarian food blog would be complete without a proper lentil soup, though, so I’ve been perfecting one of my own lately.
Here it is. My lentil soup is made with mostly pantry ingredients but includes hearty greens and a squeeze of lemon for bright, fresh flavor. It’s seasoned with a few of my favorite spices and plenty of freshly ground black pepper. Honestly, it’s the best lentil soup I’ve ever had.
INGREDIENTS
- ¼ cup extra virgin olive oil
- 1 medium yellow or white onion, chopped
- 2 carrots, peeled and chopped
- 4 garlic cloves, pressed or minced
- 2 teaspoons ground cumin
- 1 teaspoon curry powder
- ½ teaspoon dried thyme
- 1 large can (28 ounces) diced tomatoes, drained
- 1 cup brown or green lentils, picked over and rinsed
- 4 cups vegetable broth
- 2 cups water
- 1 teaspoon salt, more to taste
- Pinch red pepper flakes
- Freshly ground black pepper
- 1 cup chopped fresh collard greens or kale, tough ribs removed
- Juice of ½ to 1 medium lemon, to taste
INSTRUCTIONS
- Warm the olive oil in a large Dutch oven or pot over medium heat. One-fourth cup olive oil may seem like a lot, but it adds a lovely richness and heartiness to this nutritious soup.
- Once the oil is shimmering, add the chopped onion and carrot and cook, stirring often, until the onion has softened and is turning translucent, about 5 minutes. Add the garlic, cumin, curry powder and thyme. Cook until fragrant while stirring constantly, about 30 seconds. Pour in the drained diced tomatoes and cook for a few more minutes, stirring often, in order to enhance their flavor.
- Pour in the lentils, broth and the water. Add 1 teaspoon salt and a pinch of red pepper flakes. Season generously with freshly ground black pepper. Raise heat and bring the mixture to a boil, then partially cover the pot and reduce heat to maintain a gentle simmer. Cook for 30 minutes, or until the lentils are tender but still hold their shape.
- Transfer 2 cups of the soup to a blender. Securely fasten the lid, protect your hand from steam with a tea towel placed over the lid, and purée the soup until smooth. Pour the puréed soup back into the pot. (Or, use an immersion blender to blend a portion of the soup.)
- Add the chopped greens and cook for 5 more minutes, or until the greens have softened to your liking. Remove the pot from the heat and stir in the juice of half of a lemon. Taste and season with more salt, pepper and/or lemon juice until the flavors really sing. Serve immediately. Leftovers will keep well for about 4 days in the refrigerator, or can be frozen for several months (just defrost before serving).
NOTES
Soup recipe roughly based on America’s Test Kitchen’s lentil soup in The Complete Vegetarian Cookbook, with reference to The First Mess’ favourite lentil soup.
