Items Tagged With Forex Book Review

I was in the same Barnes and Noble today where I first started reading about Forex 18 months ago.  I always peruse the Investing section to see if there are any new and interesting books to explore.  Today, I stumbled upon a book just released by Jared Martinez titled, The 10 Essentials of Forex Trading.  I looked through it for about 30 minutes and I have to say that it is in the same class as James Dicks book, Forex Made Easy.  It contained the same drivel that you can find plastered all over the internet.  There's the self-promotion of the Market Traders Institute of which Jared is the owner of and absolutely nothing insightful.  I couldn't even believe that such as book is allowed to be published.  It sucks that people write books with disregard for others and only for self benefit.  I understand that the point is for the author to make money but come on.... provide some value. 

I was browsing Kathy Lien's book, "Day Trading the Currency Market" today in the bookstore.  The book was just released on December 2nd, 2005 so it may very well be the newest book related to Forex out there.  I know Kathy from her articles on the market that are on dailyfx.com and tradingmarkets.com.  I believe her official title is Currency Strategist.

The book is a little over 225 pages and contains the standard chapters on fundamental analysis, historical events in Forex, and technical analysis.  It was refreshing to see some new content unrelated to other forex books such as the chapters on What Moves the Currency Market in the Long Term, What Moves the Currency Market in the Short Term, What are the best times to trade for individual currency pairs, trade parameters for different market conditions, and profiles of the major currency pairs.  She also includes her recommended trading systems, one of which I am about to mention:

Here are her strategy rules for entering a Long Position:

1.    Locate a currency pair trading well below its intraday 20 SMA on a 10- or 15-minute chart.

2.    Next, enter a long position several pips below the figure (no more than 10)

3.    Place an initial protective stop no more than 20 pips below the entry price

4.    When the position is profitable by double the amount that you risked, close half of the position, and move your stop on the remaining portion of the trade to breakeven.  Trail your stop as the price moves in your favor.

Reverse the strategy rules for a short position.

There are conditions for using this strategy, the most important being that no major economic numbers should be released during this setup.  

She states that this strategy should work best for pairs with tighter trading ranges, cross, and commodity currencies.  This strategy does work for the majors but under quieter market conditions.