USING THE ECONOMIC CALENDAR TO IMPROVE THE BENEFITS OF FOREX TRADING
Modern traders are not just market warriors, first of all, they are serious analysts with a variety of interests. And there is nothing more important than information for the analyst. Professional traders are attracted to almost everything about the world economy. They are interested in retail prices of goods and presidential elections, up to wars and natural disasters. You need to see, hear, read and realize in time, everything that can affect the financial market.
The Forex market economic calendar allows you to collect all world financial news concurrently that is important practically when things are published. Where in it, the calendar does not only store real history. But it also places it in a ranking based on its interests and strength in influencing the market. Everything you need for a successful Forex analysis and trading. History of economic data and predictions from analysts are also stored in it. Usually, online calendars are published before a trading week is opened. Then the main regular data output is planned for a period of several months in advance and is constantly adjusted to the current situation.
The use of the economic calendar for trading is carried out in the following ways. Every economic event that is announced has at least three meanings. That is the event, the agreement (estimate) and the previous meaning. To be precise, the deviation from an event, first of all – from analysis predictions, the second, from previous data that can be adjusted. Relatively compared to the assessment issued in the previous period.
If the estimates of the facts published have been confirmed. That is related to calculated values (predicted). Then the market reaction will often appear mild or none at all. If the actual data is different from what has been estimated, then the market will display a movement. His movements are speculative fast and sharp, and a greater difference, along with the strength of the reaction.
It concerns international events. Such as statements and press conferences from key financial market figures. In addition, it concerns statistical data from leading countries. This will result in an effective practical response on all trading instruments.
When the news comes out, better than expected (for output of a country’s currency), recommendations generally appear. Recommendations such as opening a buy order, if worse than expected – open a sell order. If the value is appropriate (although rare, it happens!) – keep calm and trade neutrally.
If the trader knows beforehand when the news will appear, then the concerned person can plan his activities. Especially when it’s time to enter the market or close the position. The principle of “buy the rumor, sell the news” means practically the market will begin to respond to that information in advance. And when it is published, prices may move somewhat in the opposite direction, forming a “surge” of speculative markets.
Everything happens in just a few minutes.
Which for capital whose value is small, this situation is very dangerous. The economic calendar gives an early warning, when the news will be released. In addition, it gives an opportunity for traders to close positions that have been opened on time, or vice versa. Of course to gain profits from a fast movement, if the trader is ready for a greater risk.
Each financial source offers an economic calendar. The results may be presented in different designs, and sometimes offer functional content. But there are several benchmarks that show the character of a quality calendar:
… the economic calendar will act as a partner who guides you on your journey to profit …
First of all, the Forex economy calendar must be complete.
In addition, it must be relevant and constantly updated, which must have direct access to news sources.
The interface display must be understandable. Also visually and functionally, without advertising tricks and other disturbing elements.
The application of calendar software must support the logic system of various types of information filtering. In addition, it must have the ability to store its settings in the personal profile of each user.
In the end, to summarize all of the above: always try to understand the meaning of a news for the market. General understanding and for your trading instruments in particular, analyzing historical data. In addition, it also considers the psychology of market behavior over the crowd when the news is released. And most importantly, the economic calendar that will act as a partner in guiding you to profit.