Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves

YOUR INVALUABLE GUIDE FOR PLAYING THE FOREX MARKETS WITH CONFIDENCE AND SKILL

Thoroughly revised and updated, the Third Edition of Day Trading and Swing Trading the Currency Market outlines for traders the most current strategies and information needed for developing the skills to win in the highly competitive forex marketplace. Kathy Lien an expert in forex trading includes the latest statistics, data, and analysis of recent events that combine to create an up–to–date depiction of the fast–moving foreign exchange markets.

Written in jargon–free language, this comprehensive resource describes the technical and fundamental strategies and offers explanations of approaches involving inter–market relationships, interest rate differentials, option volatilities, and news events. The author also includes information on the best times to trade currencies, the most market–moving economic data across market correlations, and unique currency characteristics.

Discover how to borrow tactics from the most successful players in the game to profit from trends and compete with the big boys on your own terms.

Preface

About the Author

Chapter 1: Foreign Exchange The Fastest Growing Market of Our Time

EURUSD and Corporate Profitability

Nikkei and US dollar

George Soros

Chinese Yuan Revaluation and Bonds

Comparing the FX Market with Futures and Equities

FX versus Futures

Who Are the Players in the FX Market?

Chapter 2: Historical Events in the FX Markets

Bretton Woods: Anointing the Dollar as the World Currency (1944)

The End of Bretton Woods: Free Market Capitalism is Born (1971)

Plaza Accord Devaluation of the US Dollar (1985)

George Soros The Man Who Broke the Bank of England

Asian Financial Crisis (1997 98)

Introduction of the Euro (1999)

Chapter 3: What Moves the Currency Market?

Fundamental Analysis

Technical Analysis

Currency Forecasting What Bookworms and Economists Look At

Chapter 4: A Deeper Look at the FX Market

What Are the Best Times to Trade for Individual Currency Pairs?

Chapter 5: What Are the Most Market Moving Economic Data

Relative importance of data changes over time

Chapter 6: What Are Currency Correlations and How To Use Them

Positive/Negative Correlations What They Mean and How to use them

Chapter 7: Trade Parameters for Various Market Conditions

Keep a Trading Journal

Identifying a Trading Environment

Risk Management

Chapter 8: Technical Trading Strategy: Multiple Time Frame Analysis

Chapter 9: Technical Strategy: Trading with Double Bollinger Bands

Using Double Bollinger Bands to Pick Tops and Bottoms

Chapter 10: Technical Trading Strategy: Fading the Double Zeros

Strategy Rules

Chapter 11: Technical Trading Strategy: Waiting for the Deal

Strategy Rules

Chapter 12: Technical Trading Strategy: Inside Days Breakout Play

Strategy Rules

Chapter 13: Technical Trading Strategy: Fader

Rules

Chapter 14: Technical Trading Strategy: 20–day Breakout Trade

Strategy Rules

Chapter 15: Technical Trading Strategy: Channels

Examples

Chapter 16: Technical Trading Strategy: Perfect Order

Examples

Chapter 17: Fundamental Trading Strategy: Pairing Strong with Weak

Chapter 18: Fundamental Trading Strategy: The Leveraged Carry Trade

How Do Carry Trades Work?

Why Do Carry Trades Work?

When Will Carry Trades Work Best?

How much risk are you willing to take?

When Will Carry Trades not Work

The Importance of Risk Aversion

Chapter 19: Fundamental Trading Strategy: Macro Event Driven Trade

Know When Big Events Occur Here is a List Of a Few Important Ones.

Chapter 20: Quantitative Easing and its Impact on Forex

US Quantitative Easing

UK Quantitative Easing

Japan Quantitative Easing

Eurozone Quantitative Easing

Chapter 21: Fundamental Trading Strategy: Commodity Prices as a Leading Indicator

The Relationship

Chapter 22: Fundamental Strategy: Using Bond Spreads As a Leading Indicator for FX

Calculating Interest Rate Differentials and Following the Currency Pair Trends

Interest Rate Differentials: Leading Indicator, Coincident Indicator, or Lagging Indicator?

Chapter 23: Fundamental Trading Strategy: Risk Reversals

What Does a Risk Reversal Table Look Like?

How Can You Use This Information?

Chapter 24: Fundamental Trading Strategy: Using Option Volatilities To Time Market Movements

How to Use Option Volatilities to Trade Forex

Tracking Volatilities on Your Own:

Chapter 25: Fundamental Trading Strategy: Intervention

Japan

Switzerland

Eurozone

Chapter 26: Currency Profiles and Outlook

United States – US Dollar

Chapter 27: Currency Profile: Euro (EUR)

Broad Economic Overview

Monetary & Fiscal Policy Makers The European Central Bank

Important Indicators for the Euro

Chapter 28: Currency Profile: British Pound (GBP)

Broad Economic Overview

Monetary & Fiscal Policy Makers Bank of England

Important Economic Indicators for the UK

Chapter 29: Currency Profile: Swiss Franc (CHF)

Broad Economic Overview

Monetary & Fiscal Policy Makers Swiss National Bank

Important Characteristics of the Swiss Franc

Important Economic Indicators for Switzerland

Chapter 30: Currency Profile: Japanese Yen (JPY)

Economic Overview

Abenomics

Monetary and Fiscal Policy Makers

Important Economic Indicators For Japan

Chapter 31: Currency Profile: Australian Dollar (AUD)

Broad Economic Overview

Monetary & Fiscal Policy

Important Economic Indicators for Australia

Chapter 32: Currency Profile: New Zealand Dollar (NZD)

Broad Economic Overview

Monetary & Fiscal Policy Makers Reserve Bank of New Zealand

Important Characteristics of the New Zealand dollar

Important Economic Indicators for New Zealand

Chapter 33: Currency Profile: Canadian Dollar (CAD)

Broad Economic Performance

Monetary & Fiscal Policy

Important Economic Indicators for Canada

Index

KATHY LIEN is Managing Director of FX Strategy for BK Asset Management and Co–Founder of BKForex.com. Having graduated New York University′s Stern School of Business at the age of 18, Kathy immediately started working on Wall Street, where she earned more than 13 years of experience in the financial markets with a focus on G20 currencies. Her career started at J.P. Morgan Chase where she worked on the interbank FX trading desk and later in the cross markets proprietary trading group. As an expert on G20 currencies, Kathy is often quoted in The Wall Street Journal, Reuters, Marketwatch, Associated Press, UK Telegraph, Sydney Morning Herald, and other leading news publications. She is also an internationally published author of the bestselling book Day Trading and Swing Trading the Currency Market as well as The Little Book of Currency Trading and Millionaire Traders: How Everyday People Beat Wall Street at its Own Game.