Posts Tagged ‘Forex Trading’
Bank Order Flow Strategy
June 8th, 2011
What is the bank order flow trading method used by the Forex Cash Flow Machine?
Would you like fries with your $3.5 billion of currency trades?
Did you know McDonald’s, home of the Big Mac and Ronald McDonald, put aside $3.5 billion of foreign exchange debts for hedging exercises?
More significantly: Do you know you can “piggyback” your own trades off the foreign currency positions of multi-national corporations like Mcdonald’s?
It’s among the hottest and most lucrative trading opportunities.
You see, McDonald’s has 32,737 restaurants in 117 countries.
That means they have a lot of money exposed to currency risk, the effect of fluctuating exchange rates on their bottom line.
In fact, if you search for the word “currency” in McDonald’s 2010 annual report, you’ll find it appears no less than 114 times.
According to McDonald’s, “A significant part of the company’s [McDonald's] operating income is generated outside the U.S. and about 40% of its total debt is denominated in foreign currencies.”
So McDonald’s hedges their currency risk. “The hedges typically cover the next 12-15 months for certain exposures and are denominated in various currencies.”
Currency hedging is the only place multi-billion-dollar companies like McDonald’s intentionally, willingly and deliberately try to LOSE THEIR MONEY.
Sounds crazy until you think about it.
But multi-national companies must hedge their currency risk. They’re basically buying insurance
in case currency interest rates go against them.
In other words, when you hedge, you’re not trying to make money on trade, you’re HOPING you will lose money on the hedge. Just like you HOPE you never need major medical insurance, but you pay the premium, (just in case).
All that hedging creates stellar trading opportunities for you if you’re NOT trying to hedge your bets over 12 to 14 month time periods like McDonald’s.
So what’s the obvious trading opportunity?
First, ask: where do multi-national corporations place their trades?
Answer: through the big banks like Barclay’s, UBS and Citibank.
That’s one of the reasons why the top 10 banks are able to turn over up to $3.2 TRILLION of currency trades in a single trading day, or more than all the U.S. stock markets combined.
These banks are the source of all the non-trading money-flows we call “the global economy”.
If can execute your trades in harmony with these money flows from the big banks, you can make enormous amounts of money.
Test-drive the ONLY service that lets you automatically trade alongside the big banks
That’s why Mike Maffei’s bank order flow trading strategy has delivered such outrageous returns.
His Currency Cash Machine program is the only one I am aware of that provides retail traders an automatic,
hands-free and turn-key method to trade the bank order flow.
You can try it for 90 days in a demo account or a live account. Click here for all the details.
The 90-day test-drive might disappear. Pull the trigger on your test account before it’s too late!
I’ve never seen a trading method make more money, faster, than Mike’s bank order flow methods. I highly recommend you kick the tires with a 90-day test account while you still can.
Click here for all the details.
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Forex Trading Education is free? Possible?
May 4th, 2010
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