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Books and articles on foreign currency trading strategies and advice. All articles and books are written by experienced and successful currency investors or brokers.

Understanding Currency Trading Dynamics

Most books and courses on the subject of currency trading say that it is normal for beginners to lose money at first. Some even go as far as to say that it is normal to have a losing streak that lasts several months! This philosophy stems from the rationale that after losing significant amount of money, you will have more experience and knowledge in your future trading endeavors. If you went by their standards, how much of your hard earned money will be left in a few months? This type of attitude sets you up to fail. Why enter a battle if you are destined to lose?

The only purpose for such advice is for currency and futures brokers and dealers to make money on the spreads and commissions that you will pay to them. More often you trade, more profits for your broker or dealer. Day trading in its purest form may have worked in the late 90`s for traders who were trading volatile high tech stocks. Some traders also called "Scalpers" were getting in and out of positions in matters of minutes, even seconds and were making their profits on small differences between bid and ask price. However, those days are now gone.

In currency trading, if you are planning to scalp, or if you are planning to jump in and out of positions all day long you will not last long. I can guarantee you that. Also if you plan to purchase an X amount of Euros, GBP, or Swiss Francs and just forget about them in a "buy and hold" fashion most likely you won`t get anywhere. Currencies do not behave in the same fashion as stocks or stock market indexes. Well, if you should not day trade and you should not buy and hold, what should you do? The best approach to currency trading is called swing trading or short term trading where you hold your positions for periods anywhere from few days to few weeks, and very rarely for a few months.

Futures Long Hedging Strategy

Recommended Books

Getting Started in Currency Trading : Winning in Todays Hottest Marketplace (Getting Started In.....) - Getting Started in Currency Trading is both an introduction and reference tool for beginning and intermediate foreign exchange (Forex) traders. This information-packed resource opens with a description of the Forex market and a section of clearly defined Forex terms with examples. You'll learn how to open your own trading account by following step-by-step instructions and numerous screen shots that show you what expect inside a dealer's trading platform. You'll walk through the physical process of placing and liquidating currency orders. Later chapters introduce various trading strategies and tactics in detail, along with some fundamental and technical analysis that will help you win in the exploding foreign exchange trading market.

Day Trading the Currency Market : Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading) - Praise for DAY TRADING the CURRENCY MARKET "This is an extraordinary book that is many levels above other books on currency trading. It's filled with practical tips deriving from Kathy's experiences as a trader at JPMorgan and as an analyst and educator to online traders. A must-read for novice and experienced traders alike, this book will save readers a lot of money in expensive trading lessons." -Drew Niv, Chief Executive Officer, Forex Capital Markets LLC "I thought this was one of the best books that I had read on FX. The book should be required reading not only for traders new to the foreign exchange markets, but also for seasoned professionals. I'll definitely be keeping it on my desk for reference. "The book is very readable and very educational. In fact, I wish that Kathy's book had been around when I had first started out in FX. It would have saved me from a lot of heartache from reading duller books, and would have saved me a lot of time from having to learn things the 'hard way'. "I look forward to reading other books from her in the future." -Farooq Muzammal, Head of Foreign Exchange, Europe, Refco "Kathy's book is an indispensible tool for Forex traders, whether you are a professional or novice. It not only lays the groundwork for an in-depth understanding of Forex trading, it also contains numerous fundamental and technical strategies . . . I suspect that many traders will be keeping Kathy's book within arm's reach for many years to come." -Eddie Kwong, Executive V.P./Editor in Chief, Tradingmarkets.com "In Day Trading the Currency Market, Kathy Lien provides traders with unique, thoughtful, and profitable insight on trading this exciting market. This book should be required reading for all traders, whether they are novices to Forex or experienced professionals." -Cory Janssen, Cofounder, Investopedia.com "There are aspects to trading currencies that are different from trading equities, options, or futures. In this book Kathy Lien gives a deep insight into all the mechanisms that take place in the currency markets. Any currency trader will gain more confidence in their trading after reading this book." -Jayanthi Gopalakrishnan, Editor, Stocks and Commodities magazine "Kathy has done a brilliant job with this book. She speaks directly to traders and gives them guidance to improve their performance as Forex traders. I took some notes and ideas from the book myself that are going to be very useful for my business." -Francesc Riverola, CEO, ForexStreet SL

Trading in the Global Currency Markets - An in depth look at the tremendous potential of this vital market with expert advice from one of the foremost authorities. The foreign exchange market is the world's largest and fastest growing financial terrain. Despite its high trading volume, it is also a market little understood and little regulated. This definitive resource brings the universe of foreign exchange within reach of every investor. The revised edition includes complete comprehensive coverage of the euro and the latest historical and economic changes in the market. Cornelius Luca, a renowned authority on international investing, draws on the insights of leading experts in diverse fields of specialty to explain every crucial aspect of foreign exchange. He provides investors with an arsenal of trading weapons, many on the cutting edge of technology. Demystifying the intricacies of these markets, the book includes: Analysis of the mechanics of the market, the major players and markets, the pertinent risks, corporate trading, and methods of trading execution. A thorough overview of foreign exchange instruments and major option strategies, with clear explanations of why currencies are traded and how to forecast currency behavior. An in-depth look at the three types of analysis: fundamental, technical, and econometric. Featuring 200 charts and graphics, TRADING IN THE GLOBAL CURRENCY MARKETS is an indispensable guide to a daunting yet promising financial playing field.

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