Today I am reviewing Kathy Lien's book Day Trading & Swing Trading in the Currency Market. I originally thumbed through the first edition in Borders and though it had some good ideas, but it didn't appeal to me enough to buy it at the time.
I kept an eye on it and ended up getting it as a gift. I read through it here is my breakdown of the book.
Like most books that are meant to appeal to a wide range of traders, Lien goes into the history of forex, the fundamental factors, market correlations, etc. She does a good job of this, but in my opinion,
a lot of this information is largely theoretical doesn't necessarily directly lead to trading profits or consistency.
This brings me to my main question about Kathy Lien. Does she actually trade? From what I have read about her, I gather that she is just an analyst. If she was actually a trader, I highly doubt that she would need to be employed at GFT. I could be wrong, but if you have any insight into this question, please feel free to leave a comment at the bottom of this page.
That doesn't mean that I can't learn something from her. I strongly believe that everyone has something to teach me, even if it is only what NOT to do.
Anyway back to the book. In spite of my lack of faith in the author's actual trading prowess, there were some good trading ideas in this book. I found the chapter on technical trading strategies the most interesting and I will try backtesting some of the ideas.
There was also some good information on the relative volatility of the pairs during different trading sessions and the use of option volatility to time market movements. This last idea is one that I found interesting, but I am in no rush to test it out.
In conclusion, I feel that this book is worth getting because there are some trading ideas that can possibly be of value to any trader. However, in my opinion, the majority of the book is filled with a lot of theory and history that will be boring for the more experienced forex trader. Not what I would consider a must have book, but if you are looking for some new trading ideas, you may find a couple in this book.
Click here to get more information on this book.