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The Little Book of Currency Trading

by Kathy Lien 8 min readForex
4/5

Quick Summary

Best For: Concise forex education with practical strategies

Key Takeaways:

  • Carry trade fundamentals
  • Technical levels that matter in forex
  • News trading protocols
  • Correlation between currency pairs
  • Position sizing for forex accounts

Review: The Little Book of Currency Trading by Kathy Lien

Rating: ★★★★☆ (4/5)

Best For: Concise forex education with practical strategies

Category: Forex

Overview

The Little Book of Currency Trading by Kathy Lien is a highly regarded contribution to the forex literature. This book has earned its place on the shelves of many dedicated traders for good reason — it delivers profound insights that can meaningfully impact trading performance when properly internalized and applied.

Who Should Read This Book

This book is ideal for concise forex education with practical strategies. It is considered essential reading in its category and frequently appears on 'must-read' lists compiled by professional traders and trading educators.

Key Takeaways

1. Carry trade fundamentals

This insight is particularly valuable because it addresses a fundamental aspect of forex that many traders overlook or underestimate. Understanding and applying this concept can create a meaningful edge in your trading approach.

2. Technical levels that matter in forex

This insight is particularly valuable because it addresses a fundamental aspect of forex that many traders overlook or underestimate. Understanding and applying this concept can create a meaningful edge in your trading approach.

3. News trading protocols

This insight is particularly valuable because it addresses a fundamental aspect of forex that many traders overlook or underestimate. Understanding and applying this concept can create a meaningful edge in your trading approach.

4. Correlation between currency pairs

This insight is particularly valuable because it addresses a fundamental aspect of forex that many traders overlook or underestimate. Understanding and applying this concept can create a meaningful edge in your trading approach.

5. Position sizing for forex accounts

This insight is particularly valuable because it addresses a fundamental aspect of forex that many traders overlook or underestimate. Understanding and applying this concept can create a meaningful edge in your trading approach.

Strengths

The primary strength of The Little Book of Currency Trading is its depth of insight. Kathy Lien brings significant experience to the subject matter, and the writing is clear and practical. The concepts are presented in a logical progression that builds understanding incrementally.

Weaknesses

The book could benefit from more practical examples and case studies. Some readers may find certain sections require multiple readings to fully absorb. Additionally, as with any trading book, the specific examples may become dated even as the underlying principles remain timeless.

How to Apply This Book

To extract maximum value from The Little Book of Currency Trading, we recommend reading it cover to cover first, then returning to highlight key passages that resonate with your current trading challenges. Create a summary document of actionable insights and review it weekly. Most importantly, implement one concept at a time in your trading — attempting to apply everything simultaneously leads to overwhelm and inconsistency.

Final Verdict

The Little Book of Currency Trading earns its 4/5 rating as a highly recommended read in the forex space. If you're serious about improving your trading, this book belongs in your library.

This review reflects our assessment based on the book's content, practical applicability, and reader feedback. Individual results from applying the book's concepts will vary based on experience level and market conditions.