This is one of my favourite technical reference books; full of great nuggets to help the Long Term or IntraDay Forex Trader.
The author is well-respected in the world of currency trading, has appeared on CNBC, has her own website and blog that discusses currency trading and a director of Currency research (whatever that means!) at GFT. Anyway, she is it well “out there”.
The book attempts to cover The Currency Market from a very wide perspective and does it relatively well in Kathy’s relaxed writing style. She starts off with a few short Chapters on the history of the currency market and the fundamentals that drive it. The middle section of the book talks a lot about the market characteristics such as, the best times to trade some pairs, daily ranges, managing different market conditions and even seasonality.
For me the best bits are Chapters 9 onwards. She highlights some valid technical and fundamental trading strategies, mainly on the daily charts. But my favourite (that I am working on myself) is the 20/100 period Momentum strategy. When backtested it works well, although there is still some degree of discretion as to when to take entry, which I think is valid otherwise a robot could do it and then where is the edge ?
The book finishes with a Chapter called “How to trade like a hedge Fund manager” (read – how to be more professional). In a dozen pages she captures very well what all the expensive courses try to teach you. Read it, read it again and save yourself some money!
I like the paragraph on “The Art of Exiting and Entering a Trade”. Here she describes the 4 ways that you can get into and out of a trade. So many people say you must scale out or you must scale in to get maximum profit. The point is, whether you have Single Entry/Single Exit (which is what I prefer on IntraDay Trading) or Multiple Entries and Multiple Exits, your style, your trading strategy and timeframe will all play a part in deciding what your entry and exit strategy will be – there is no best way.
Have a Great Read