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!
Ultimate Ropa Vieja (National Dish of Cuba)
Ultimate Ropa Vieja (National Dish of Cuba)
Shredded beef and vegetables that resemble a heap of colorful rags – that’s Ropa Vieja. From the Spanish term for “old clothes”, this is one of Cuba’s most popular and beloved dishes. So popular in fact that it’s one of the country’s designated national dishes.
This dish dates back to the Middle Ages of Spanish Sephardi, a loose adaptation of a dish that remains popular in southern and central Spain. Traditionally it was a way to stretch the leftovers of stews such as puchero or cocida, both of which are garbanzo-based dishes as is the original Spanish version of Ropa Vieja. This dish was later taken to Cuba where the Cubans made it their own.
Ingredients
- 2 pounds chuck ask your butcher to cut it taller than wider so you get long strands of beef along the grain or flank steak (see discussion in this post about cuts of beef)
- 1 large yellow onion thinly sliced
- 1 of each large green red and yellow bell pepper, thinly sliced
- 4 cloves garlic minced
- 2 teaspoons dried oregano
- 2 teaspoons ground cumin
- 2 teaspoons sweet paprika
- 1 teaspoon smoked paprika
- 1/8 teaspoon ground allspice
- 1/8 teaspoon ground cloves
- 2 teaspoons kosher salt
- 1/2 teaspoon freshly ground black pepper
- 1/2 cup dry white wine
- 1 cup chicken broth chicken broth has a stronger/deeper flavor than beef broth
- 1 16 ounce can crushed tomatoes
- 1 6 ounce can tomato paste
- 2 bay leaves
- 1 large carrot cut in half
- 1 large stalk celery cut in half
- 1 cup Lindsay Naturals Green Olives rinsed and drained (you can slice them if you prefer)
- 1/2 cup thinly sliced Lindsay Roasted Red Peppers drained
- 1/4 cup Lindsay Pimientos drained
- 2 tablespoons Lindsay Capers rinsed and drained
- 1/3 cup chopped fresh parsley
Instructions
- Pat the beef dry and sprinkle with salt and freshly ground black pepper.
- Heat a little oil in a Dutch oven over high heat. Once very hot add the beef and brown generously on all sides. Transfer the beef to a plate. (Do not discard the drippings and blackened bits in the pot, they are key to the flavor.)
- Add the sliced vegetables to the pot and cook over medium heat for 15-20 minutes until caramelized. Add the garlic and spices and cook for another minute. Add the white wine and bring it to a rapid boil, deglazing the bottom of the pan (scraping up the browned bits on the bottom of the pan).
- Add the broth, crushed tomatoes, tomato paste and bay leaves. Simmer for 5 minutes.
- Return the roast to the pot along with the pieces of carrots and celery. Bring to a boil, reduce the heat to low, cover and simmer for 3-4 hours or until the beef is fork tender and falls apart easily. Discard the celery, carrots and bay leaves.
- Transfer the beef to a plate and shred it.
- Stir in the olives, roasted red peppers, capers and pimientos. Simmer uncovered to thicken the sauce for 30 minutes. Stir in the parsley and add salt and pepper to taste.
Notes
For a variation on traditional beef you can also use pork or chicken (bone-in/skin-on for the most flavor or boneless breast or thighs).
