This review is from: The Little Book of Currency Trading: How to Make Big Profits in the World of Forex (Hardcover)

Kathy Lien’s The Little Book of Currency Trading: How to Make Big Profits in the World of Forex is a good primer on the subject. Unlike so many Forex websites and some books that make sales pitches and then overwhelm with information, Lien starts with the basics, building as she goes along, weaving interesting sidebars, bits of information and examples as she traverses her subject.

The beauty of this book is that it is ‘up to date’. It was published Dec. 28, 2010 and brings the reader through the events up to and including the financial crisis as well as the beginning of the sovereign debt problem in the Eurozone. Many other Forex books were written before the financial crisis, thereby are somewhat obsolete.

She states: The subprime and the sovereign debt crisis showed us how we cannot focus solely on what is happening in our own little part of the world because, as we have seen, the problems in one country like the United states could destroy the economies of other countries.

In light of the recent financial crisis, she offers her investing philosophy, that of a well researched opportunist. She states: Financial crises are becoming increasingly common. In time of crisis, currency trading is a way to turn headlines into opportunities.

After the introduction Lien delves into first, the basics, then the complexities of Forex trading.

Chapters include:

Chapter 1: When Lightening Strikes

Chapter 2: Rubles and Bahts and Euros — Oh, My! Forex is not as foreign as you think.

Chapter 3: The A to Zs of Forex: Basic Knowledge You Need to Have. In this chapter Lien examines 25 Forex definitions and terms needed to start trading.

Chapter 4: Step Right Up: Getting Started in Forex.

Chapter 5: Shakers and Movers: What causes Currencies to Go Up or Down?

Lien discuses everything that effects currencies, including headlines, political and economic news and releases, yet her most poignant piece of information in this chapter is Listen to central bank officials. What they say can impact currencies

Chapter 6: The Investor Versus the Trader

Chapter 7: What All Winners Do

Chapter 8 So You’re an Investor?

Chapter 9: So You’re a Trader?

Chapter 10: Risky Business

Chapter 11: The Top 10 Mistakes

Chapter 12: Greetings from Nigeria, Please Help!

Chapter 13; Getting Down to Business

Chapter 14: Crash, Burn, And Learn

The biggest scams in the Forex market and the top 10 mistakes that currency traders/investors make. Also, her discussion on using Bollinger Bands (technical analysis) is straight forward, easy to understand and practical.

In summary, The Little Book of Currency Trading is a great first book to those new to currency trading and a great refresher course for those of us who are seasoned veterans.