Day Trading And Swing Trading The Currency Market By Kathy Lien!

Kathy Lien has a vast experience trading the interbank market using both technical and fundamental analysis to trade FX spot and options.  Kathy is frequently quoted on CNBC, Bloomberg, FOX Business and Reuters. Currently Kathy Lien is the Director of Currency Research at GFT Forex. She is responsible for providing technical and fundamental analysis research reports, market commentaries and trading strategies.  Before joining the GFT Forex, Kathy was the Chief Strategist for DailyFX.com.

Anyone who is interested in Day Trading or Swing Trading the Currency Market must read Kathy Lien’s book Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (Wiley Trading).  Kathy has organized her book in a neat manner. She starts from the very basics of the forex market and discusses how the forex market is organized and how the stocks, bond and the futures market are interlinked with the currency market. Forex market is in essence an over the counter market that makes it somewhat different than the stocks, bond and futures market. She compares each market with the currency market and gives the pros and cons of trading these different markets.

In the next chapter, she gives a historical perspective on the development of the currency market and how the fall of the Bretton Woods System in 1973 ushered in a new era of floating currencies and led to the development of the present currency markets.  In chapters 3 and 4, she discusses the factors that move the currency market in the short term and the long term. As a trader, you need to have a big picture of what moves the market. In these chapters, Kathy tries to give you that picture.

In Chapter 5, she gives the best times to trade the individual currency pairs. The 24 hour nature of the currency market confuses many new traders. What you need to understand is that there are certain times that have higher chances of making winning trades as compared to other times. This chapter is very important, it gives you the best times to trade the different currency pairs.

In the next few chapters, she discusses how correlations and seasonality affects the currency market plus the trade parameters for the different market conditions.  Chapters 9 is one of the most important in my view in which Kathy gives Technical Trading Strategies like the Multiple Timeframe Analysis, Fading the Double Zeros, Waiting the Real Deal, Inside Day Breakout Play, The Fader, Filtering False Breakouts, Channel Strategy and How to Trade The News.

In Chapter 10, she gives Fundamental Trading Strategies like Picking the Strongest Pair, Leveraged Carry Trade, Commodity Prices and Bond Spreads as Leading Indicators, Using Equities to Trade Forex, How to use Options Volatility to time the Market Movements and so on. Chapter 11 is about How to Trade Like Hedge Fund Managers.

One thing that Kathy did not mention is the importance of money management for any trading strategy. Perhaps the book is only focused on Day Trading and Swing Trading Strategies. All in all, Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (Wiley Trading)
 is a very good resource book on Day Trading an Swing Trading The Currency Market that you shouldn’t miss!