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.
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!
Bánh mì is a brilliant example of colliding food cultures. It owes its familiar form of a crusty baguette to the French, yet its palate-tingling array of complex flavours and textures is totally down to the Vietnamese. If you haven’t had a chance to have one yet, I encourage you to try it, it’s bound to make you grin all the way through your lunchtime!
Although the fillings can vary quite a lot most of them follow a similar pattern apart from an ice-cream version, which does what it says on the tin – a baguette filled with ice cream scoops and sprinkled with crushed peanuts.
Most bánh mìs owe their satisfying bite to a mixture of something ‘chewy’ (in our case it’s seasoned tofu), something ‘sweet and sour’ (pickled carrot and daikon are most commonly used), something crunchy (cucumber or other raw veggies) and something fresh (plenty of coriander) topped with something ‘spicy’ (spicy chilli sauce or vegan sriracha mayo).
PS: If you make my tofu bánh mì, don’t forget to tag me on Instagram as @lazycatkitchen and use the #lazycatkitchen hashtag. I love seeing your takes on my recipes!
- Place carrot, turnip (or radishes) in a sterilised (rinsed with boiling water) jar.
- Put rice vinegar, sugar, peppercorns, salt and garlic clove in a small pot and bring to the boil. Continue simmering for about 10 minutes.
- Pour hot pickling liquid over raw vegetables. Once the pickling liquid cools down, keep the jar in the fridge.
- Mix tofu marinade ingredients: maple syrup, rice vinegar, tamari, Sriracha and sesame oil. Cut pressed tofu into smaller pieces. You can prepare it in two different ways. I like my tofu pan-fried but you can also bake it for a healthier and still very good result. If pan-frying your tofu, sprinkle it lightly with cornflour/cornstarch and fry on a small amount of hot oil until browned on both sides. Blot it with a piece of paper towel after frying. Finally, pour marinade over the tofu to flavour it. If baking, immerse the tofu pieces in prepared marinade and set the oven to 180° C / 355° F. Once the oven is ready, pop marinated tofu pieces onto a paper-lined baking tray and bake for 30-40 minutes. Once baked, apply a second layer of marinade to intensify the flavour.
- To make a mayo, put aquafaba, lime juice, salt and garlic powder into a tall container and blend together with an immersion blender. Once combined and slightly frothy, start adding oil very slowly while blending at the same time. It should be literally trickled in (rather than poured in) so that the mayo starts to emulsify properly. Once your mayo gets all thick and creamy, season it with Sriracha, pepper and extra salt if needed. Refrigerate it (to thicken it further) while you assemble your sandwich.
- Cut baguettes into small pieces and toast them lightly under a grill. Fill them with a layer of pickled vegetables, fresh cucumber, shredded cabbage, spring onions, tofu and fresh coriander. Top with a dollop of Sriracha mayo before closing the sandwich.
*To press the tofu without a tofu press, wrap your tofu in a paper towel, place it on a plate and weigh it down with something heavy (like a can of coconut milk, for example). Once the paper towel becomes wet, change it for a new one. Repeat a few times until the paper towel stays almost dry. Pressed tofu is tastier as it absorbs flavours better.
**Aquafaba (AF) or bean brine is leftover cooking water from cooking most legumes. I use chickpea water and have not tried using any other type yet. You can get it from a can of low sodium chickpeas or make your own. In this recipe, I used tinned AF, but when making sweet recipes I always make my own to avoid added salt. When making your aquafaba, soak dry chickpeas in lots of water overnight, rinse and put in a large pot with lots of water. Bring to the boil and then simmer for about 1 hour (until beans are soft). Remove cooked chickpeas with a slotted spoon and what’s left in your pot is aquafaba. If it is too runny (ideally it should resemble egg whites), you can concentrate it a bit by simmering it on a low heat (without a lid) until it reaches the desired consistency. Cool it down before using.