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!
BRAISED SHORT RIBS WITH CHEESY GRITS (SLOW COOKER)
BRAISED SHORT RIBS WITH CHEESY GRITS (SLOW COOKER)
It was a perfect, relaxing week punctuated by some amazing meals at local restaurants. A couple of days into our week-long stay, we had dinner at a nearby resort and I chose their braised short ribs with smoked cheesy grits. I have literally day dreamed about that meal ever since… to say it was amazing is a gross understatement. It’s taken me seven months, but I’ve finally recreated it!
I was totally thrilled with how these short ribs turned out. By the time I pulled them out of the slow cooker, the meat was falling right off the bone. Amazing! That meal will always remind me of our wedding week, and now I can make it at home !
BRAISED SHORT RIBS WITH CHEESY GRITS RECIPE
Braised Short Ribs that have been marinated overnight in red wine and made in the slow cooker.
INGREDIENTS:
For the Short Ribs:
- 3 tablespoons vegetable oil
- 5 pounds beef short ribs
- 1 onion, finely chopped
- 3 carrots, peeled and cut into ¼-inch slices
- 4 stalks celery, cut into ¼-inch slices
- 4 garlic cloves, thinly sliced
- 5 thyme sprigs
- 4 cups chicken stock
- 4 cups dry red wine (example: cabernet sauvignon)
For the Cheesy Grits:
- 4 cups water
- 1 cup corn grits
- 3 tablespoons unsalted butter
- 6 ounces smoked cheddar cheese, shredded
- 2 ounces smoked gouda cheese, shredded
- Salt and pepper, to taste
DIRECTIONS:
- Prepare the Short Ribs: Heat the vegetable oil in a 12-inch skillet over medium heat until shimmering. Season the short ribs liberally with salt and pepper, then add half of the short ribs to the skillet until a brown crust forms on all sides, about 2 to 3 minutes per side. Remove the short ribs to a 9×13-inch baking dish and repeat with the remaining short ribs. All of the short ribs should now be in the baking dish in a single layer.
- Reduce the heat to low and add the onion, carrot, celery and garlic to the now-empty skillet and cook, stirring occasionally, until the vegetable are very soft and lightly browned, about 20 minutes. Add the wine and thyme and bring to a boil over high heat. Pour the hot mixture over the short ribs and allow to cool to room temperature, then cover and refrigerate overnight, turning once.
- The next morning, remove the short ribs from the marinade and place in a 6-quart slow cooker. Transfer the marinade to a medium saucepan, add the chicken stock, and bring to a boil over high heat. Pour over the short ribs, place the lid on the slow cooker and cook on low for 8 to 10 hours.
- Prepare the Grits: About 30 minutes before planning to eat, begin to prepare the grits. Bring the water to a boil, then slowly stir in grits. Reduce the heat to low and cook, stirring occasionally, until thick and creamy, about 20 to 30 minutes. Remove from the heat and stir in the butter and shredded cheeses until both are melted and incorporated into the grits. Season with salt and pepper.
