A 10-Point Plan for Advice (Without Being Overwhelmed)
Helping Your Trade with Financial Calendars
Tracking global events that could impact the exchange rate of the currency pair you are trading in is important if you are doing trades in the forex market. These events can easily be tracked using a financial calendar. Changes in GDP of the currencies you are trading in, interest rate decisions of these countries, consumer price index, etc. are some events that influence exchange rates.
While it is possible to create your own financial calendar from online research, it is best to use the financial calendars offered by online platforms which contain indicators that are automatically updated at regular intervals. There are financial calendars that you will find that gives you a clue of which indicators will likely influence the market.
Success in using these events to your advantage is in anticipating the direction the market will move and why. But then, most of the time, market movement is unpredictable but it can present you will excellent opportunities to succeed in your trade. It remains curial to know when these events will occur but whether to use them or not, is completely up to you. The first step, of course, is to choose a financial calendar that you are comfortable with.
If you will look at all the macroeconomic indicators, you need to choose which the best one for you is. You should look first at the asset you are trading when looking at a financial calendar. There are certain indicators that affect currency pairs either directly or indirectly.
If you are going to choose an indicator to follow, then it should be according to the type of trading that you do. There will be different indicators that will affect the market temporarily or long-term if you are a buy-and-hold or intraday trader. But some indicators affect both. The sentiment of the market can either be bolstered or hurt short term, and price is affected long term. Price is affected by the direct correlation with inflation and reverse correlation with the exchange rate.
Regularly monitoring your financial calendar will help you follow trends better and it can benefit you if you spot a trend before the market does.
All the political and economic factors that can impact your current fair should be considered when using a financial calendar. This means that you need to keep the bigger picture in mind and not just focus on specific events or announcements. Events may have an impact on currencies you are not trading in but you will never know its impact on your currency pair. So you should choose indicators to follow carefully.