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!
Pumpkin Soup - Classic and Easy
Especially in winter, there’s nothing better than dunking warm crusty buttered bread into a big bowl of creamy pumpkin soup. This classic recipe is incredibly easy, and if you have a stick blender it's a one-pot-wonder.
Ingredients
- 1.2 kg / 2.4 lb pumpkin (any) , unpeeled weight (Note 1)
- 1 onion, sliced (white, brown, yellow)
- 2 garlic cloves , peeled whole
- 3 cups / 750ml vegetable or chicken broth , low sodium
- 1 cup / 250 ml water
- Salt and pepper
- Finishes:
- 1/2 - 3/4 cup / 125 - 185 ml cream, or half and half (Note 2) or 3/4 cup / 185 ml milk (any type, I use low fat)
Instructions
- Cut the pumpkin into 3cm / 2.25" slices. Cut the skin off and scrape seeds out (video is helpful). Cut into chunks.
- Place the pumpkin, onion, garlic, broth and water in a pot - liquid won't cover all the pumpkin. Bring to a boil, uncovered, then reduce heat and let simmer rapidly until pumpkin is tender.
- Remove from heat and use a stick blender to blend until smooth. If you don't have a stick blender, use a blender - see notes.
- Season to taste with salt and pepper, stir through cream (never boil soup after adding soup, cream will split).
- Ladle soup into bowls, drizzle over a bit of cream, sprinkle with pepper and parsley if desired. Serve with crusty bread!
Notes
1. ~2.4lb / 1.2kg pumpkin before peeling and removing seeds. Approximate is fine - use the liquid levels in the video as a guide for quantity.
To make this with pumpkin puree, you will need around 2.5 cans of puree.
2. I usually make pumpkin soup without cream because I don't always have cream on hand. So I usually make this with milk - also because I find this satisfying enough as it is because it's so thick and has such a great flavour. You can use any type of milk you want - full fat, low fat, almond, soy etc.
Half and half is an American dairy product that is half cream, half milk. In Australia, our equivalent is pouring cream. Any kind of cream is suitable for this recipe. Basically, the higher the fat % and thicker the cream, the richer the finished soup.
3. If you don't have a stick blender, you can use a blender BUT you must make sure that the soup is cooled slightly before blending it, otherwise you will find out the hard way that hot soup + blender = soup explosion (literally, the lid will blow off the blender when you start blending it).
4. RECIPE COMMENTARY: The idea with this recipe is that the pumpkin is boiled uncovered so you're left with the right amount of liquid at the end such that once pureed, the soup is lovely and thick. You don't need the liquid to cover the pumpkin, the steam and bubbling will cook all the pumpkin through. I don't think using onion + garlic is common in other recipes but I promise you, it adds that extra savoury flavour that really makes this a truly great pumpkin soup, despite being so crazy easy.
5. Easy Pumpkin Soup Nutrition per serving, assuming 4 servings and made with milk.
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