Forex Trading: How to Trade a Breakout

Forex Trading: How to Trade a Breakout

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Clearly understand this: Information contained in this product are not an invitation to trade any specific investments. Trading requires risking money in pursuit of future gain. That is your decision. Do not risk any money you cannot afford to lose. This document does not take into account your own individual financial and personal circumstances. It is intended for educational purposes only and NOT as individual investment advice. Do not act on this without advice from your investment professional, who will verify what is suitable for your particular needs & circumstances. Failure to seek detailed professional personally tailored advice prior to acting could lead to you acting contrary to your own best interests & could lead to losses of capital. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. – See more at: http://tradeempowered.com/#sthash.jZ5Lm5PB.dpuf

In this weeks FMP I take a little time to walk you through a couple breakout trades including a false breakout. You can see more great videos on my youtube page or at http://www.tradeempowered.com

High Yield Notes Auctioning – Forex Trading Strategy Q&A

High Yield Notes Auctioning – Forex Trading Strategy Q&A

How does the Treasury Department affect the FX Market when auctioning the High Yield Notes?

The answer to this question is quite simple. It all depends on the demand and where that demand is coming from. High Yield Notes are obviously the government bonds. The high yield means that you get a higher return than you would get in the other places. So, basically, if the treasure department is auctioning their high yield bonds the investors will, obviously, want to buy them. Simply because it will give them a good return.

When we say Tresure Department we are talking about the US Treasury. Furthermore, we are talking about American bonds. If the demand for them is coming from outside of America, let’s say foreign investors. Think China, Japan, Europe, anywhere outside of America. Those entities, those institutions are going to have to buy US dollars in order to buy those high yields in treasury. So, obviously, that can have an impact on the US dollar. In the scenario we’ve just discussed it’s would force the the value of the US dollar up.

If the demand, during these auctions, is coming from internally. For instance, from internal investors. Obviously it is not going to have the same kind of impact. There will be no currency exchange going on so the impact to the FX market will be much smaller.

The impact the high yield bond auctioning has on the FX market is quite limited. Particularly, on a day to day basis. It is very difficult to determine when this is happening and in what quantity. So in terms of trying to trade this – it is fairly tricky. But in general, that is how Fx market is affected by the Treasury Department Auctioning of those High Yield Notes.

Hope that helps and keep those questions coming!

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