Who better to explain the nuts and bolts of trading in the currency market than someone who successfully directs the trading strategy of the world’s largest currency broker online? The author of Day-Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Swings is just such a person. Kathy Lien has many years of experience in the FOREX markets and does an excellent job of sharing her immense knowledge with readers.
The view from the inside
One of the best things about Day-Trading the Currency Market is the truly insider’s view you get of all aspects of the FOREX market. From the very basics of market structure to the more advanced concepts and strategies for successfully day-trading in the FOREX market, everything you need to know is laid out in a very logical and easily understandable manner.
In fact, readability is one of the noteworthy aspects of this book. The details of the FOREX market are not exactly riveting content, but Lien succeeds in presenting a range of material in a way that is exceptionally readable and interesting whether you are a complete novice or an experienced FOREX trader. Her writing style is informative without being boring, making it one of the most readable books on the subject of FOREX market trading you can find anywhere. She has an outstanding ability to take what can easily be a stale and tedious subject and turn it into an engaging and appealing read.
The information you need to be successful
The wealth of information in Day-Trading the Currency Market is much greater than you might expect. It is a comprehensive guide to the FOREX market that also provides the insight and practical tips that can only come from someone who has significant experience in this trading arena.
The book begins with the basics of the FOREX market, including:
Once the foundation has been laid, Day-Trading the Currency Market moves into the real heart of the FOREX market to discuss a wide range of topics that are critical to successful trading.
Taking a closer look at FOREX market topics
The book contains excellent discussions about key FOREX market topics that are crucial to understand and apply to your trading approach. Day-Trading the Currency Market delves into some of the deeper insights about the mechanics of the market and how to make the most of the opportunities they present.
The topics discussed at this deeper level of detail include:
Market movement – Why does the currency market move? What factors influence that movement? Which factors affect long-term movements of currency prices and which factors affect short-term movements of currency prices?
Trading times – How do various currency pairs trade in the market based on different time zones? Which pairs are best traded at which times? What is the best strategy related to each of the major market sessions (Asian/Tokyo, U.S./New York, European/London, U.S./European overlap, European/Asian overlap)?
Changing market conditions - As market conditions change, which market parameters are most important to track and monitor? How do you use these indicators to create an accurate profile of the changing environment for trading?
Trading strategies (technical) – Which technical strategies are most useful for day traders and/or swing traders? Are there some strategies you should avoid in some market conditions? How do you match the strategy to the market conditions?
Trading strategies (fundamental) – Which fundamental strategies are most useful for day traders and/or swing traders? How do you conduct trades related to fixed income instruments, prices for commodities, and the volatilities associated with options? What is intervention-based trading and how should it be used? What key strategies are most often used by larger entities such as hedge funds?
Currency pair profiles – Which currency pairs should you look at closely and consistently? For each of these pairs, what are the main drivers affecting their price action? Which pieces of economic data are most important to each pair?
More reasons to use this resource
Of course there are a lot of different books that provide some of these same details, but what makes Day-Trading the Currency Market stand out is the depth of information presented and the extremely readable way in which it is presented. Let’s face it, you could buy a book packed with all sorts of details and specifics but if reading it bores you to tears then it does you very little good. You are much better off buying a resource like this one that combines complete and accurate information with clear and straightforward language anyone can understand.
Take the topic of technical trading strategies, for example. The author doesn’t just list some useful strategies, she explains and describes each one in terms of how it works and in what market conditions it is likely to work the best. By the time you finish with the technical trading strategies section you will be well versed in several different, specific strategies such as:
The information on fundamental trading strategies is just as complete and thorough. This particular type of trading strategy has been the subject of many, many articles, books, and other resources, yet Day-Trading the Currency Market still manages to present key information in a way that is fresh and interesting. Some of the areas of fundamental trading strategies examined include:
Another particular area of strength in this book is the chapter containing detailed profiles of the world’s major currencies and the most common characteristics of different currency pairings. For each currency profile – U.S. dollar, Euro, Swiss Franc, Australian dollar, British pound, Canadian dollar, Japanese yen, New Zealand dollar – you will find not only accurate technical information about the currency itself, but also some of the author’s personal insights gleaned from many years on the inside of one of the world’s largest FOREX market trading companies.
The bottom line
The bottom line for Day-Trading the Currency Market is that it is one of the best resource books available on the subject of FOREX market trading. It does an excellent job of explaining not only the basics of currency trading, but also the details and nuances of the FOREX market that can make all the difference between losing money and turning a profit. Even the most experienced of traders will find something useful in this book, and most will take away a rich collection of ideas and notes they can put to immediate use.
So called “expert advice” can be found all over the place, but much of it is not really expert at all. This book is entirely different because it truly delivers the kind of advice and guidance that both beginners and experienced traders can apply to their trading activities. It is the kind of actionable information often promised but rarely delivered, so it is refreshing to find a book like Day-Trading the Currency Market that fully delivers on its promises and more.