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!
The Best Irish Beef Stew
The Best Irish Beef Stew
This has to be one of the best Irish stews, this may not be the most traditional recipe but it is certainly one of the tastiest!
This is by far the best stew I have ever made! The combination of Guinness beer and red wine just raised the bar on a flavourful stew. The house smelled wonderful cooking this traditional Irish dish; well almost traditional, I used beef instead of lamb or mutton.
I cooked my Irish Stew in the oven but this recipe also works great in the slow cooker. If using garden fresh potatoes you don’t have to peel them. I serve this stew with fresh baked buns which are great for soaking up that extra broth left on the plate.
The Best Irish Beef Stew Recipe
A sensational stew recipe enhanced with Guinness Beer and Red Wine.
INGREDIENTS
- 2 lbs stewing beef cut into 1-inch pieces
- 2 tbsp olive oil
- 1/4 cup flour
- salt and pepper
- 1 large russet potato (about 2 cups) cut into 1/2 pieces
- 3 large red potatoes (about 3 cups) cut into 1/2 pieces
- 3 stalks celery, sliced
- 3 large carrots, (about 2 cups) cut into 1/2 pieces
- 1 large onion, diced (about 11/2 cups)
- 2 tbsp butter
- 6 large garlic cloves, minced (about 1/4 cup)
- 3/4 cup red wine
- 3/4 cup Guinness beer
- 4 cups beef broth
- 2 tbsp tomato paste
- 1/2 tbsp granulated sugar
- 2 tbsp Worcestershire sauce
- 1 tbsp dried thyme
- 2 bay leaves
- 1 tbsp flour
- 1 tbsp cold water
INSTRUCTIONS
- Heat the olive oil in large skillet or dutch oven, medium-high heat.
- Salt and pepper beef, dust with flour and fry until browned on all sides, about 5 to 7 minutes. (work in batches to avoid overcrowding pan)
- Remove from pan and set aside.
- Add more oil to skillet if necessary, then add potatoes, celery, carrots and onion to skillet and cook until potatoes slightly browned (about 10 mins)
- Remove from skillet, set aside.
- Add butter to skillet.
- Add garlic and sauté about 1 minute, until fragrant.
- Deglaze pan with red wine, add Guinness beer, beef stock, tomato paste, sugar, worcestershire sauce, thyme and bay leaves.
- Stir to combine and bring the mixture to a simmer, then add beef and vegetables back into skillet or dutch oven.
- Cover and transfer to oven to bake at 350 degrees for 1-2 hour until vegetables and beef are tender.
- If using slow cooker, cook 3-4 hours on low setting.
- If stew needs to be thickened add slurry (1 tablespoon flour whisked together with 1 tablespoon cold water). Return pot to stovetop and over medium heat slowly stir slurry into the stew stirring constantly. Cook 5-10 minutes until thickened
- Season with salt and pepper to taste
