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The forex market is the largest financial market in the world. With a daily volume of over $3 trillion a day, it is hard not to pay attention to the possible movements and trading opportunities apparent in this market. It is also difficult to ignore the fact that you can be trading 24 hours a day, six days a week, which beats the trading hours imposed in the stock markets. But how different is the currency market as compared to the stock market? Shares Investment is fortunate enough to have an exclusive interview with Kathy Lien, one of the biggest names in the forex market to take an inside scoop of this market.
Shares Investment: A lot of people have been harping on the pound[euro](TM)s weakness right now after it got downgraded. We[euro](TM)ve also seen the power of political action or inaction, which could impact the respective currencies, how do you identify an entry point in such circumstance?
Kathy: You are right that the fundamentals will be a call for a weaker pound, you know we have a lot of event risks coming up in the next couple of months, particularly the chance of more easing from the Bank of England, which could be a catalyst for the pound to move lower. For me personally, I like to sell on weaknesses instead of strength, because in the forex market, if we get into a trending mode in a currency pair, it can move so quickly and aggressively over a period of time, which was very well...