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!
Beef Short Ribs Grávy
Beef Short Ribs Grávy is máde by cooking short ribs until they áre fáll-off-the-bone tender! Once cooked, the meát is removed from the bone ánd shredded – then ádded báck into the cooking stock which hás been thickened into á grávy.
INGREDIENTS
- 5 pounds meáty beef short ribs (ábout 8 ribs)
- 1 teáspoon kosher sált
- ½ teáspoon freshly ground bláck pepper
- 3 táblespoons extrá virgin olive oil
- 1 ½ cups thickly sliced shállots (6 ounces in weight)
- 1 ½ cups thickly sliced onion hálves (ábout one medium to lárge onion)
- 4 táblespoons tomáto páste
- 1 12-ounce bottle dárk ále or stout beer
- 3 lárge sprigs fresh thyme, left on the stem
- 3 lárge sprigs flát leáf pársley, left on the stems
- 1½ quárts vegetáble stock
- 1 táblespoon Worcestershire sáuce
- ¼ cup butter ( ½ á stick)
- ¼ cup áll-purpose flour plus 2 táblespoons (*See Note ábove)
- ádditionál sált ánd pepper to táste
- Máshed potátoes (see recipe here) for serving
INSTRUCTIONS
- Seáson the ribs with the sált ánd pepper.
- Heát á lárge oven proof Dutch oven over medium high heát ánd ádd oil.
- Once hot, ádd hálf the ribs ánd seár on áll sides for 2-3 minutes per side or until browned. Remove to á plátter ánd repeát for rest of ribs. Remove the second bátch to the sáme plátter.
- Preheát oven to 375 degrees F.
- Using sáme pot, turn the heát to medium ánd ádd the shállots ánd onions ánd cook for ábout three minutes or until just slightly cooked.
- ádd tomáto páste ánd cook ánd stir for one minute.
- ádd the ále ánd stir ánd cook until reduced by hálf.
- ádd the sprigs of thyme ánd pársley, stock ánd Worcestershire sáuce. ádd the seáred ribs to the pot, bring to á boil, cover ánd pláce in oven for three hours with lid slightly ájár. Hálfwáy through cooking, turn ribs, cover ágáin ánd finish cooking with lid slightly ájár.
- If you áre serving with máshed potátoes cook them now.
- With á páir of tongs, remove ribs ánd bones to á plátter to cool.
- Remove ánd discárd the thyme stems. The pársley will háve disintegráted into the sáuce.
- Pour the liquid into á contáiner ánd with á ládle, skim off ánd discárd the fát thát floáts to the top. I removed án entire cup of fát.
- Once the meát hás cooled enough to hándle, sepáráte the meát from the bones, fát, gristle ánd sinew. Reserve meát ánd if not álreády shredded, shred with two forks. Discárd bones ánd gristle. You should háve 1 ½ pounds of cooked meát.
- Pláce butter in sáme pot thát the ribs were cooked in ánd melt over medium heát.
- ádd flour ánd stir to form á roux. Note, feel free to omit the two táblespoons of flour ánd just use the ¼ cup if you like your grávy on the thin side. Cook this mixture for ábout three minutes. Then one third át á time, ádd liquid báck in whisking át eách third.
- ádjust seásoning ánd ádd shredded beef báck in. If too thick, thin down with á little wáter.
- Serve over máshed potátoes or rice or use in Poutine (recipe coming tomorrow)
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