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Kathy
Lien is the Chief Currency Strategist at Forex
Capital Markets LLC (FXCM). She is responsible
for providing research and analysis for DailyFX,
including technical and fundamental research reports,
market commentaries and trading strategies.
Prior to joining FXCM, Kathy was an associate
at JPMorgan
Chase, where she worked in cross-markets and foreign
exchange trading. She has vast experience
within the interbank market using both technical
and fundamental analysis to trade FX spot and
options. She also has experience trading
a number of products outside of FX, including
interest rate derivatives, bonds, equities and
futures. Kathy has written for MarketWatch
from Dow Jones, Active Trader, Futures and SFO
magazines. She has taught currency trading
seminars across the country, has appeared on CNBC
and is frequently quoted on Bloomberg and Reuters.
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AUTHOR TEAM |
Adam Oliensis
Andy Chambers
Brian Schad
Chuck
Hughes
Darrell
Jobman
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Caplan
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Wagner
George
Angell
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Fontanills
Glenn
Neely
Jack Schwager
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Najarian
John
Weston
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Williams
Lawrence
McMillan
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Gettess
Mark Fisher
Murray
Ruggiero
Paul
Forchione
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Frazier
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Sands
Scott
Krieger
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Tesser
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DeMark
Tony
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Wilder
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Inside
Trading features
Kathy Lien this week. In
her article, Kathy discusses
how the forex trader can
discern a true breakout
from a false breakout.
Next, Lee Gettess gives
us his perspective on the
both the S&P and the bond
market for the coming week.
George Angell provides the
third article on how institutional
traders affect the market,
and their trading style.
Last, Paul Forchione gives
some tips for trading options
with the delta neutral strategy.
Enjoy!
Adrienne
LaVigne
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| Filtering
False Breakouts |
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By: Kathy Lien
The
following is an excerpt taken from Kathy Lien's Day
Trading the Currency Market
Trading breakouts can
be a very rewarding but frustrating endeavor as many
breakouts have a tendency to fail.
A major reason why this occurs frequently in
the foreign exchange market is because the market
is much more technically driven than many of the other
markets and as a result there are many market participants
who intentionally look to break pairs out in order
to suck in other nonsuspecting traders.
In an effort to filter out potential false
breakouts, a price action screener should be used
to identify those breakouts that have a higher probability
of success.
The rules behind this strategy are specifically
developed to take advantage of strong trending markets
that make new highs that then proceed to fail by taking
out a recent low and then reverse again to make other
new highs. This
type of setup tends to have a very high success rate
as it allows traders to enter strongly trending markets
after weaker players have been flushed out, only to
have real money players reenter the market and push
the pair up to make major highs.
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| Lee
Gettess' Market Sense |
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Lee
Gettess is a top trader who is excited to bring
you his new video newsletter. Each week, Lee will
share his predictions on what he anticipates from
the bond and S&P markets.
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Institutional Footprints
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By: George Angell
The
following excerpt was taken from George Angell's
New
Market Strategies How To Trade With Pinpoint Accuracy
One
of the biggest indicators that a trade is ripe for
the taking is when the big players, the financial
institutions, get aboard.
These big-money players could be fund managers,
who might manage enormous pensions funded with billions
of dollars, or banks and brokerage firms.
Because of their size, they are almost always
easy to spot.
Moreover, they have a certain "herd instinct"
that causes them to act in concert with one another.
This serves to maintain trends and accentuate
a move.
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Options: Delta Neutral Trading Tips
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By: Paul Forchione
The
following is taken from Paul Forchione Trading
Options Visually
Neutral
options trading generally refers to Delta Neutral
options trading.
The Delta of an option is defined as the
amount the options price moves in relation to
a one point move in the underlying commodity.
So, an option that moves .65 points for
a one point move in the commodity has a Delta
of 65 or 65%. An options pricing model is needed
to calculate the Delta of each option, and calls
have positive Deltas while puts have negative
Deltas.
Tips
for trading a delta neutral strategy
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Day
Trading the Currency Market
Technical
and Fundamental Strategies to Profit from Market Swings
This
book is broken down into chapters ranging from a beginner's
guide to  terminology
and the history of FX markets through to trading strategies,
all of which briskly moves forward into more advanced
and comprehensively fleshed out sub-sections. Filled
with in-depth yet accessible information, thanks wholly
to the author's no-nonsense writing style, Day Trading
the Currency Market can show you how to enter this
highly competitive arena with confidence and exit
with profits.
Included
with this book are two bonus items:
1. The
Beginner's Guide to Success in Today's FX Currency
Markets
2. Secret
Forex Trading Techniques
Click
here to learn more
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