Kathy Lien On Forex Market

 

  • Kathy got her start in forex trading in 1999. She started at JP Morgan in a rotational program that gave her introduction to many markets, which is how she realized currencies is something she wanted to focus on.
  • Kathy identifies herself as both an intraday trader and a swing trader. She is in and out of positions in the same day for many of her trades; for some of her swing trades she will hold positions for a few days, but rarely more than 5.
  • Kathy focuses less on risk/reward and more on identifying high probability trades.
  • She always places a stop and a limit.
  • She trades EURUSD the most for her intraday trading, but uses other cross pairs for her swing trades.
  • She develops a fundamental view, based on how she sees things shaping up over the next week or 2 months, then looks for technical signs that give her the okay to enter.
  • She is a breakout trader, looking to follow momentum.
  • She believes news events can serve as the catalyst that validate her fundamental viewpoint, and thus will place trades in anticipation of market reactions to news events that validate her thesis.
  • She pays close attention to data from China, as it can have a big impact on currency markets. She does not believe China is in for a hard landing.
  • Kathy views open-ended QE in a positive light, believing it is helping to fortify financial markets and avoid a crash.