Hanging out next to Gary Shilling at the Barnes & Nobles Union Square.
The Little Book of Currency Trading is the perfect introduction to the forex market for investors looking to get a taste of how the largest market in the world works. Written in an easy to understand tone with some practical approaches, this book is designed for people who have no clue what pips, stops and lots mean.
Little Book of Currency Trading is the title of my new book! I didn’t want to mention it until the book is officially out (only on iBooks and maybe Kindle right now), but its already #1 of best FX books. Thanks Rob Booker for the plug! More on the book in the next few weeks, I promise! Its a beginner for those of you who need one!
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex (Little Books. Big Profits)
***If you bought a copy and like the book. Post a review on Amazon or iBook, send me the link via the Contact Box and I’ll invite you to a special Live Trading Webinar next month!
I was on the Business News Network this morning talking about today’s developments including the Japanese elections, the prospect of intervention, the UK CPI numbers, the reason why euro is weak and U.S. retail sales. Click on the image to access the Video
One of the new chapters in my book, Day Trading and Swing Trading the Currency Market, Second Edition is on seasonality.
Technical analysis is based on the idea that price patterns repeat themselves and seasonality is rooted from this very same concept.
According to the following chart, over the past 10 years the EUR/USD depreciated in the month of January 7 times. If we expand the chart to include 1997, which I cover in the book, that would be 8 out of 11 times.
Of course, like all technical analysis, the pattern does not always repeat itself which is why we saw the EUR/USD rise in the month of January during 2003, 2006 and 2008.
For an explanation of why there is a strong case for seasonality in the currency market during month of January and for other examples of seasonality, treat yourself to a copy of second edition of Day Trading and Swing Trading the Currency Market
Forex trading ranges have exploded over the past few months. The daily average trading range has doubled for all of the actively traded currency pairs in 2008, with some currency pairs even seeing a 200% rise in their average daily range.
However the big explosion in volatility has actually happened in the past 9 weeks. EUR/GBP, USD/CAD and the AUD/USD have seen the largest increases to their average daily range, but the range for the EUR/USD and GBP/USD has also increased materially.
More specifically, in 2007, the EUR/USD had an average daily range of 84 pips. Since October, its average daily range has been 267 pips, a more than 300 point rise.
Understanding trading ranges is very important because it plays a big role in developing effective money management strategies. I explore this concept in more detail in the second edition of Day Trading & Swing Trading the Currency Market.
EUR/GBP which use to known as one the range trading currency pairs saw its average daily trading range increase from 36 pips in 2007 to 142 pips since October, a whopping 400 percent rise. Say goodbye to the days of the hiding in low volatility of EUR/GBP because it is currency pair that has seen the largest expansion in volatility.