Kathy Lien is a famous Forex author, analyst and blogger. Although she is best known for her 2005 title Day trading in the currency market, his more recent work certainly deserves a review – The Little Book of Currency Trading: How to Make Big Profits in the Forex World. It was published at the end of December 2010 and quickly became a very popular book on currency trading.
What is this book about
The Little Book of Currency Trading is part of the “Little Book, Big Profits” series by John Wiley & Sons. If you know of other “little books,” you’ll quickly recognize the style – short read, lots of little chapters, a bit of everything that is said, shallow subject coverage, and little accomplishment at the end. It won’t teach you “how to make big profits”, but it will certainly get you started on the path to follow. may lead to big profits.
As you read this book, you will learn the following things:
- The currency market is a world full of potential opportunities, where money can be earned even during crises.
- Currency trading is closer than you might think as export / import and travel currency exchange is a part of almost everyone’s life these days.
- How to Get Started in Online Retail Forex Trading.
- What determines exchange rates.
- There are two main approaches to the Forex market: investing and day trading.
- How to trade using the Double Bollinger Band technique.
- How to trade using the news headlines.
- What a high probability
configurationsare and how to use them.
- Top 10 Mistakes Beginner Traders Often Make.
- There are many Forex scams and how to avoid them.
- Traits of successful traders.
- How a trading journal can help you become a better trader.
While the book certainly isn’t bad, it has one major downside and a few other minor ones:
- The biggest drawback is that the book is very superficial. If you are a fairly seasoned trader, you shouldn’t expect to learn a lot of new things from a book intended for complete beginners. Plus, even a new trader might find it a little less informative than it should be. Unfortunately, it also fails to direct the reader to sources of continuing education.
- Promotion of partial profit taking (scaling out). It has been proven to decrease business expectation. It seems that, in Kathy’s opinion, the psychological advantages outweigh this disadvantage.
- Kathy does not reveal the exact settings to use with Double Bollinger Bands. She doesn’t even discuss how the different periods affect her.
- The author of the book is a fan of flat numbers in his business. Rather than basing SL / TP levels on volatility, spreads, ATR, etc., she just pulls a number out of her head and tells us it’s good value. It doesn’t sound very professional, honestly.
- Some minor flaws, like the presentation of a rather complex calculation of a pip value for currency pairs quoted in dollars. It’s still $ 10 per standard lot – there’s no need to calculate it!
But don’t let such a number of disadvantages mentioned here fool you! The Little Book of Currency Trading is not the worst starting book. If you are new to Forex, you will certainly appreciate its advantages:
- You will familiarize yourself with almost all of the important concepts and terms related to Forex trading.
- Kathy pays a lot of attention to the really important things like keeping a trade journal, reducing losses, setting realistic goals, tailoring your trading style to your personality, etc.
- He shares at least one trading strategy that you can start using almost immediately.
- Kathy’s book does a great job of explaining the true meaning of the forex market – how various companies use it to hedge risk and how currency rates influence our daily lives.
- Low price and few pages. It won’t waste your time and cost you around $ 10 to $ 15 depending on the version and where you buy.
If you don’t know much about Forex and haven’t read any currency trading books yet, then The Little Book of Currency Trading by Kathy Lien may be a good
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