Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading) [Hardcover]

Kathy Lien (Author)

Book Description

Series: Wiley Trading | Publication Date: December 2, 2005

Written by Kathy Lien—chief strategist for the number one online currency broker in the world—Day Trading the Currency Market reveals a variety of technical and fundamental profit-making strategies for trading the currency market, and provides a detailed look at how this market actually works. It contains actionable information and strategies, which can help you enter this highly competitive arena with confidence and exit with profits.

Editorial Reviews

Review

"...a leap forward in sophistication..."  (The Technical Analyst, June 2006)

"…well researched ideas…Lien’s expertise really shines through…" (Shares, August 2006)  

From the Inside Flap

The currency/foreign exchange (FX) market is by far the largest financial market in the world, with trading volumes surpassing $1.9 trillion a day. Although primarily dominated by a worldwide network of interbank traders, a new era of Internet-based communication technologies has recently allowed individual investors to gain direct access to this popular—and profitable—market.

Written by Kathy Lien—chief strategist for the number one online currency broker in the world—Day Trading the Currency Market reveals a variety of technical and fundamental profit-making strategies for trading the currency/FX market, and provides a more detailed look at how this market actually works.

Designed for both the advanced and novice trader, Day Trading the Currency Market contains something for everyone. It touches on the major FX market basics or currency characteristics that all traders—particularly day traders—need to know, and contains actionable information on which you can base some of your trading strategies. This comprehensive guide opens with a straightforward discussion of general issues, such as the emergence of the foreign exchange market, who the major players are, and significant historical milestones, but quickly delves into more detailed topics in the following sections:

• What moves the currency market—factors that impact both long- and short-term price movements
• What are the best times to trade for individual currency pairs—through an outline of major currency pair trading activity (in different time zones), you'll discover when pairs are most attractive
• Trade parameters for different market conditions—teaches you how to first profile a trading environment and then know which indicators to use for that trading environment
• Technical trading strategies—covers some of the most important trading strategies for day traders and swing traders. They run the gamut, from "Fading the Double Zeros" to the "Inside Day Breakout Play"
• Fundamental trading strategies—illustrates how to trade off commodity prices, fixed income instruments, and option volatilities; and covers intervention-based trades as well as the secret moneymaking strategies used by hedge funds
• A profile of major currency pairs—discusses the unique characteristics of each major currency pair, from what drives their price action to which economic data releases are most important

Filled with in-depth insight and expert advice, Day Trading the Currency Market can show you how to enter this highly competitive arena with confidence and exit with profits.

See all Editorial Reviews

Product Details

• Hardcover: 256 pages
• Publisher: Wiley (December 2, 2005)
• Language: English
• ISBN-10: 0471717533
• ISBN-13: 978-0471717539
• Product Dimensions: 9.2 x 6.3 x 1 inches
• Shipping Weight: 15.2 ounces
• Average Customer Review: 4.0 out of 5 stars  See all reviews (39 customer reviews)
• Amazon Best Sellers Rank: #424,179 in Books (See Top 100 in Books)
  • #79 in Books > Business & Investing > International > Foreign Exchange

More About the Author

Kathy Lien is an Internationally Published Author, Managing Partner of BKForexAdvisors.com and the Director of Currency Research of FX360 and GFT. Her trading books include the following:

1) For beginners, "The Little Book of Currency Trading (2010, Wiley)."

2) Second edition of the highly acclaimed, internationally published "Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit form Market Swings (2008, Wiley)."

3) Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game (2007, Wiley)

4) High Probability Trading Setups for the Currency Market E-Book (2006, Investopedia)

As Director of Currency Research, Kathy is responsible for providing research and analysis for GFT. She also runs an FX Signal Service BKForexAdvisor.com, with Boris Schlossberg - one of the few investment advisory letters focusing strictly on the 3 Trillion/day FX market.

Kathy is a "Trader First, Analyst Second." She publishes both technical and fundamental research reports, market commentaries and trading strategies. A seasoned FX analyst and trader, Kathy has direct interbank experience. Prior to joining GFT, Kathy was the Chief Strategist of DailyFX.com and worked in JPMorgan Chase's Cross Markets and Foreign Exchange Trading groups using both technical and fundamental analysis to trade FX spot and options. She also has experience trading a number of products outside of FX, including interest rate derivatives, bonds, equities and futures. She has taught seminars around the world on day and swing trading the currency market.

Kathy is also one of the authors of Investopedia's Forex Education section and has written for Tradingmarkets.com, the Asia Times Online, Stocks & Commodities Magazine, MarketWatch, ActiveTrader Magazine, Currency Trader, Futures Magazine and SFO. She is frequently quoted by Bloomberg, Reuters, the Wall street Journal, and the International Herald Tribune and has appeared on CNN, CNBC, CBS and Bloomberg Radio. She has also been on a few episodes of Wall Street Warriors, hosted trader chats on EliteTrader, eSignal and FXStreet, sharing her expertise in both technical and fundamental analysis.

Many people have asked how Kathy has managed to achieve so much at such a young age, but if you consider that she graduated New York University's Stern School of Business at the age of 18 in 1999, she actually has a wealth of experience.

Customer Reviews

Most Helpful Customer Reviews

218 of 227 people found the following review helpful:

3.0 out of 5 stars Good when taken into context, September 26, 2006

By 

Scott Shubert (Santa Fe, NM tradingmastermind.com) - See all my reviews
(REAL NAME)   

This review is from: Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading) (Hardcover)

I have had the pleasure of seeing Kathy Lien speak twice at Forex seminars. She is very intelligent and has a wonderful personality. You will find some interesting and informative content in this book that can be useful in your educational path in Forex. But it is important to keep in mind that the book is written not by a trading entrepreneur but by a representative of one of the largest Forex brokers. To become a successful trader it is essential to recognize the vast difference in agenda between winning traders and brokers. The entire industry is driven by brokers and almost all material available on learning to trade is tied directly or indirectly to the broker industry whose agenda is to teach trading strategies that make the most money for THEM. Because the industry is unregulated, brokers are able to get away with many less than ethical practices. For instance, it is ironic that another reader mentions how Kathy covers the subject of the "carry trade" in detail. The last time I spoke with FXCM I discovered to my shock that they had adopted the policy of charging a negative interest regardless of which direction one was trading which I believe should be criminal. But there is no regulating agency to prevent them from doing that. Neither the CFTC nor the NFA actually regulate the activity of Forex brokers. Some other brokers, refuse to publish their interest rates or display them in their trading platforms so they can change them behind the scenes every day according to what benefits them the most. You may notice that others have a negative interest that is twice as much as their positive interest. All of this is part of the overall objective to keep the majority of traders focused on day trading which makes the most money for brokers. Studying trading material published by brokers is like asking a casino owner how to gamble. Most of the trading "mentors" are also introducing brokers who make money when you trade. A word to the wise, is that if you intend to succeed in Forex trading consider looking to sources of information that are not tied to any broker such as other traders who have learned to master this arcane art.

41 of 41 people found the following review helpful:

3.0 out of 5 stars good look at forex market, January 10, 2006

By 

financeworker "fred" (Toronto, Ontario Canada) - See all my reviews

This review is from: Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading) (Hardcover)

This work presents a fairly complete overview of the forex market, its major participants, currency pairs and how those pairs are influenced and behave. In fact, there was more information about the forex market in general than I was anticipating.

I had purchased the book, believing it was mostly geared towards strategies and techniques for trading the market on an intraday basis. There is one chapter, wherein Kathy gives some very good and reliable techniques for trading intraday, which are essentially built around the 4 Week Rule of trading (a very reliable way of identifying new highs/lows and entering the market when a new trend--or existing trend--is breaking out, along with derivatives of that rule. Anyone who is unfamiliar with the rule can learn the particulars by doing an internet search or purchasing a book such as John Murphy's, Technical Analysis of the Financial Markets.

The small amount of material devoted to actual trading is the only reason I didn't give it more stars, but for someone new to forex trading in general, it would be worthy of more stars and a further look.

58 of 67 people found the following review helpful:

5.0 out of 5 stars Desktop Reference, December 12, 2005

By 

Mercer King - See all my reviews
(REAL NAME)   

This review is from: Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading) (Hardcover)

This book will be a worthwhile addition to the trader's library. After reading Ms. Lien's very thorough presentation there should be few unanswered questions about how the currency market works and how to find profitable trading opportunities. The breadth of currency market information is well beyond what I was expecting. Many of my questions were answered, including some that I didn't know to ask. My knowledge of this activity has increased significantly as a result.
Although written for traders, readers interested in the general subject will find it provides a good overview of what the currency market is all about.