Stocks: 10 Mistakes that Most People Make
Helping Your Trade with Financial Calendars
Knowing the global events that impact currency exchange rates are important for traders in the forex market. A financial calendar can help you keep track of these global events that move the market. 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 some financial calendars that highlight the importance of each indicator and this gives you which of them will likely move markets.
If you want to be successful in using these events to your advantage, then you not only need to know when they will occur, but you need to anticipate which direction that market will move as a result 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. The kind of asset you are trading determines what to look at in a financial calendar. The effect of certain indicators on currency pairs can be direct or indirect.
When choosing which indicator to follow, you should also consider the type of trading you do. Buy-and-hold or intraday trader then there are different indicators to choose that affect the market temporarily or long-term. There are indicators that affect both, though. Short term it either bolsters or hurt market sentiment and long-term if affects the price. Price is affected by the direct correlation with inflation and reverse correlation with the exchange rate.
You need to regularly monitor your financial calendar so that you can follow trends better and who knows, you can spot a trend even before the market does and it can benefit you greatly from your trend analysis.
All the political and economic factors that can impact your current fair should be considered when using a financial calendar. You don’t just focus on specific announcements or events but keep the bigger picture in mind. For example, if an event only impacts some currencies that you are not into trading, but it can have an impact on your currency pair too. This is why it is good to choose the indicators that you will follow carefully.