Reviewing an economic calendar is an essential part of your daily routine as a forex trader good, and should always be the first thing you do before decide together on the trade-ups and trading strategies for your trading day. Aware of the price-sensitive news before it happens allows you to reduce your risk.
Movements in the price of foreign currency pairs are often greatly influenced by ads related to economies the particular currency. For example, if you are trading the Australian dollar (AUD) ahead of an announcement of interest rate the Reserve Bank of Australia, you can expect some volatility after the announcement, especially if the ad is different than many analysts were expecting.
Be aware that the period immediately before the ad can often see a lack of direction that the announcement is expected, although it is not uncommon for the price to be volatile ahead of the announcement.
Due to the importance of the U.S. dollar (USD), specific ads for the economy I often have an impact on all coins.
Forex Economic Calendars
Many well-known financial sites provide economic calendar, updated with the recent economic data, which will be announced soon – all free.
The best forex calendar color coding of the ads, which indicates the impact of each ad can have on the coins in particular. Economic announcements most likely to drive the markets are coded RED. Those who may have a low impact are coded yellow.
Good Forex calendars also show the value that analysts expect to be announced, and provide a useful explanation than the number means and that publishes.
Ads individuals to watch out for that are guaranteed to have an impact are the payrolls not U.S. agricultural GDP (gross domestic product), interest rates, and also speeches being made by Treasury Secretary EUEU and Federal Reserve Chairman.
Keeping an eye attention on a economic calendar ensures that you as a forex trader can see immediately:
- that the notices are due in the next hours
- coins that the ads are likely to influence,
- how much influence they are likely to have.
Risk Management
By knowing the timing of key announcements related to special coin that you may be thinking of trading you may choose to stay out of that particular coin until the ad is gone. This can be particularly useful if you're a day trader with a trading tight stop loss.
Just imagine how you would be upset if you looked back on the charts for trade Long you were at night, which rose 20 pips down and hit your stop-loss (taking it out of the trade with a loss) only after an announcement, only to recover and then comes an additional 150 pips in profit …… without you.
Some Forex traders however will specifically choose to be a currency, an ad break, hoping benefit from a sharp price movement to predict the ad correctly.
The information provided in an economic calendar is more specific and more relevant to their trading decisions than most of the comments you'll hear on television or read in editorials – many of them is the belief, speculation and in most cases after the event happened.
In comparison, as a forex trader you want is precise, specific for your business, just when it is most relevant to your trading.
By knowing in advance the timing of the ads which influence the price of the currency, forex economic calendar allows you as a forex trader manage the risk and should be one of its main trading tools. It should be noted, however, that no economic calendar will never be able to alert an operator of unforeseen events, which can often have a greater impact on the markets.
The http://www.profitable-fx-trading.com website provides immediate free access to some excellent economic calendars which you can use right away, along with many other free tools, free training videos, strategies and useful contacts to make your forex trading as profitable as possible.
Forex Trading Outlook – DailyFX News November 30, 2009
|
|
Boosting Returns: New Twists to Time-tested Trading Techniques with Tom Gentile [VHS] $64.95 … |
|
|
Fibonacci Trading (Interactive CD-Rom) Fibonacci numbers and ratios point to specific turning points in the markets movements. Mike Mc Mahon will take you through this fascinating study, one step at a time. Fibonacci works on trends, gaps, intraday and interday price movements. This CD course features a comprehensive online test with follow-up by one of Online Trading Academys staff to discuss your progress with these concepts. This … |
|
|
Unlocking the Profits of the New Swing Chart Method Jeff Cooper $2,500.00 8-DVD bound set with 302-page manual “This is the course your traders have been looking for.” Unlocking the Profits of the New Swing Chart Method The power of this revolutionary method unfolds in over 300 full-color charts. The methods are the result of years of trading, untold lessons from the market and countless hours of studying by Cooper and Reif. What’s equally as extraordinary as the … |
