Today, with a diverse variety of books focused on financial markets, finding something worthy about trading strategies suitable for Forex appears to be quite a challenge. Day Trading the Currency Market absorbs you into the world of currency pairs and analysis providing you with an insight into the essentials of the foreign exchange market.
Kathy Lien, a respected expert in Forex trading, is CEO of a financial company. She is also an author of a number of books dedicated to trading on financial markets and some personalities who are successful in trading.
Day Trading the Currency Market reads about practical use of trading strategies. In her book, Kathy Lien also pays much attention to fundamentals like news and macroeconomic releases and also the way they affect the rates of national currencies. Kathy Lien believes that a wise combination of technical and fundamental tactics will bring a trader success.
The book splits into three logical parts. The first one – Chapters 1-4 – features general questions and basic factors of the foreign exchange market. It covers the history of this market, introduces you its participants, dwells upon their behaviour patterns, short- and long-term factors of Forex including fundamental and technical analyses as well as intriguing principles of short-term price fluctuations.
The second part of the book – Chapters 5-8 – deals with technical analysis and profitable short-term trading strategies. Kathy Lien touches upon conventional strategies such as Fading the Double Zeros, Inside Day or False Breakout that could be useful for experienced traders. On the other hand, she also tells about modern trading methods using analysis of indicators, stressing the importance of systematic approach to decision making (employing filters such as ADX when entering the market, etc).
The third part of the book brings into focus fundamental aspects of currency pairs. Kathy Lien gives a comprehensive description of all Forex majors, including fundamental and psychological factors to take into account when trading them, and reviews fundamentals-based strategies (Risk Reversal, Intervention). This section of the book might lack some information on technical specifics of currency pairs. However, this is what is up to a reader, because the vision of Forex assets dynamics tends to stem from individual experience of using various strategies.
Day Trading the Currency Market is great for beginning traders longing for deeper knowledge in day trading, its variations and principles of trading systems development. As to experienced traders and technical analysts, this book could seem to be too facile as it mainly describes the classy trading approaches, not actual price formations in place on Forex today.