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For traders to succeed with economic calendar

Understanding and using information from the economic calendar is extremely important for traders. Grasping important economic events helps them predict and react on time. From there, optimize your forex trading strategy and minimize risks. In a volatile market like forex, this is not only an advantage, but also the key to success. Let’s explore more deeply about what an economic calendar is with Learn Forex Trading in the article below!

What is the economic calendar that has a strong impact on trading?

The economic calendar is an important tool in economic analysis and financial trading. So what is an economic calendar?

Concept of economic calendar 

The economic calendar can be considered a “powerful arm” of traders in the field of finance and trading. It is used to track and predict important economic events that can affect financial markets and trading. Specifically, information about important economic events and indicators such as unemployment rate, GDP growth, inflation… Or political or financial events that can affect the market.

Learn about the economic calendar
Learn about the economic calendar

This information is collected and published on a certain schedule, usually weekly or monthly. The purpose is so that investors and experts can evaluate the economic situation. From there, find smart trading opportunities. The economic calendar also helps them adjust their trading strategies to react to fluctuations in the market.

See more: Inflationary and the Secret Behind Depreciation

What information does the economic calendar provide?

Below is the information for the economic calendar :

The world economic calendar includes publication time

The economic calendar provides information about expected times. Or the exact time when economic indicators or important events will be announced. This helps investors and market participants prepare and shape their trading strategies.

The economic calendar shows the time displayed

Economic calendar often provide information about the timing of economic events. This allows users to know the time of impact of information on the market. They can adjust their trading strategy accordingly.

Provides economic events that impact Forex trading

The economic calendar can affect the foreign exchange (Forex) market. It includes data releases on what is inflation, unemployment rates, retail sales, and key political events. This information can create big fluctuations in the Forex market. From there, it strongly affects the prices of currency pairs.

The economic calendar shows asset movements

Besides information about economic events, the world economic calendar also provides indicators such as the cpi index … statistical data that can influence the prices of various assets such as stocks, commodities, and currencies. This helps investors evaluate and predict fluctuations in the market. From there, look for suitable trading opportunities.

The role of the economic calendar in Forex trading

The economic calendar plays a very important role and greatly affects traders’ trading decisions. Here are two specific points about this role:

The world economic calendar helps predict trending price action

What an economic calendar is, it also provides information about the time and content of important economic events. These events can create major fluctuations in the Forex market. It can affect the prices of currency pairs.

The economic calendar can impact the prices of currency pairs
The economic calendar can impact the prices of currency pairs

Through monitoring and evaluating this calendar, investors can predict how price action will react before and after events are announced. This helps them make smart trading decisions. For example, open an order before an event occurs to take advantage of the opportunity. Or close the current order to avoid unwanted risks.

Helps Forex traders seize profit-making opportunities

The economic calendar provides investors with an overview of the global economic situation. Especially the factors that can affect currency pair prices. This helps them identify potential trading opportunities based on economic data and market movements.

By using information from the economic calendar accurately and thoroughly, Forex traders can take advantage of short- and long-term trading opportunities. This way they can make profits and optimize their trading strategies. At the same time, they can also reduce risks. This is achieved by intelligent risk assessment and management based on information from the calendar.

Instructions for trading Forex according to the economic calendar

Below are specific instructions, let’s take a look!

How to process calendar data provided for Forex trading 

  • First, observe the world economic calendar. The purpose is to identify important events to be announced.
  • Next, consider the impact of these events on the Forex market. Especially the currency pairs that interest you.
  • Perform technical and fundamental analyses to evaluate potential price movements. From there, find smart trading opportunities.
  • Create a specifLearn Forex Trading plan. These include the decision to open a position, profit target, and risk level.

Tips to limit risks thanks to the world economic calendar

  • Set stop-loss: Use stop-loss to limit risk in every trade. This will help protect your investment. Especially in cases where the market reacts differently than expected after economic events are announced.
    Set SL on every trade to manage risk
    Set SL on every trade to manage risk
  • Diversification: Diversify your portfolio by trading multiple currency pairs. Combined with that is using different strategies. This can help reduce risk. Especially when a currency pair is strongly influenced by events in the economic calendar.
  • Use safe trading techniques: Follow risk management principles. Remember not to risk too much on each trade. Consider the reward-to-risk ratio and only open an order when the profit potential is higher than the risk.

Information about Forex that needs attention on the calendar 

Interest rate: Information about the Central Bank’s interest rate decision. Also, comments from officials can affect currency prices.

Key economic events: Includes data releases on inflation, unemployment, industrial production, and retail sales.

Political events: Policy changes or geopolitical events can create large fluctuations in the Forex market.

Where can I view the economic calendar?

You can view the economic calendar on many different financial platforms and websites. Some suggestions are below:

Several platforms offer reputable calendars for Forex trading

  • Forex Factory: This is one of the most popular websites providing economic calendars and analytical tools for the Forex market.
  • Investing.com: This platform not only provides information about the world economic calendar but also provides technical and fundamental analysis tools for traders.
  • DailyFX: This is one of the leading websites for Forex information and analysis. The platform offers an economic calendar along with in-depth analytical articles and videos.
  • TradingView: This platform not only provides a calendar but also allows users to create and share technical charts. You can also discuss with the community that is trading currency pairs.

Follow the world economic calendar with Investing

With Investing, you can easily track and evaluate information from the calendar to support your trading decisions in the Forex market.

Select Investing to track the economic calendar
Select Investing to track the economic calendar

Search for events

Use the search function on Investing.com to find economic events that interest you. You can search using keywords such as country name, event type, or economic index name.

Filter and sort

Use filtering and sorting features to display economic events as you desire. You can filter by country, event type, or by impact level.

View details

When you find an event you’re interested in, click it to see detailed information about that event. You’ll get information about the event’s timing, relevant economic data, and forecasts from experts.

Set up notifications

Use Investing.com’s alerts feature to receive notifications about economic events directly on your mobile device. This helps you not miss any important information (news).

Use other analysis tools (tools)

In addition to the economic calendar, you can also use other TA and FA tools for Investing. Simply evaluate the market and make smart trading decisions.

Instructions on how to view the economic calendar on the Investing platform

Step 1: Visit Investing.com’s website. Select “Economic Calendar” in the menu bar above.

Go to the Investing website to find the economic calendar section
Go to the Investing website to find the economic calendar section

Step 2: On the economic calendar page, you can filter events by country, event type, time, impact level…

Use the filter to find events by country, time, level of influence...
Use the filter to find events by country, time, level of influence…

Step 3: You can also click on each event to view detailed information. There are also many predictions from experts.

See specifically each piece of information that the economic calendar provides
See specifically each piece of information that the Economic Forex Calendar provides

How to build a Forex trading strategy based on information from the calendar?

To build an effective trading strategy from the economic calendar, you can take the following steps:

Choose a calendar that suits your Forex trading style

If you are a scalper, you will focus on opening and closing positions in short periods, from seconds to minutes. In this case, you will be interested in short-term fluctuations in prices and often need specific and detailed economic information.

If you are a trend follower, you will look for opportunities to buy or sell based on the long-term trend of the market. You may be interested in major and long-term economic events that can affect the overall market trend.

If you are a long-term investor, you will focus on holding positions for long periods, even from a few weeks to a few months or more. In this case, you can focus on global economic events and long-term strategy.

Carefully note Forex-related impacts on the calendar

To carefully note Forex-related impacts on your calendar, you can take the following steps:

Follow events in the economic calendar that have a major impact on the Forex market:

Observe important economic events such as interest rate announcements, currency rates, inflation and GDP data.

Monitor information about monetary policies and economic situations of major countries, especially countries that have a great influence on the currency market.

Notes on expert forecasts and historical charts of similar events:

Follow experts’ forecasts on the outcome of upcoming economic events.

Record information about experts' forecasts of economic events
Record information about experts’ forecasts of economic events

Compare forecasts with actual results and note the differences. From there, evaluate the impact of the event on the market.

Review historical charts of similar events to better understand how the market reacted in the past and make predictions about how the market may react in the future.

Be conscious of checking the economic calendar regularly

Regularly checking the Forex calendar is an important part of an effective trading process. Here are some things to keep in mind when doing this:

Determine frequency

Determine how often you check the economic calendar by your trading strategy. You may need to check daily, weekly, or even hourly. It depends on the scope and frequency of your trading.

Set up notifications

Use tools or apps to set up notifications for important economic events on the calendar. This helps you not miss any important information and can be prepared for market fluctuations.

Impact assessment

When examining this calendar, evaluate the impact of expected events on the markets and currency pairs you trade. This helps you understand what factors can create price fluctuations. From there adjust your trading strategy if needed.

Take notes and highlight

Take note of important events and mark them on the economic calendar so you can easily refer to them in the future. This helps you build a history and gain a deeper understanding of how economic events affect the market.

Integration into the transaction process

Finally, make sure that checking this becomes an integral part of your trading process. Integrate checking the Forex Calendar into your daily or weekly trading plan so you can make smart and effective trading decisions.

Forex traders need to adjust their schedules to suit their needs

To adjust the schedule to suit each forex trader’s personal needs and conditions, below are the detailed steps:

Determine experience and available time

First, assess your level of experience in forex trading. Do you have more or less experience in reading and understanding information from economic calendars?

Next, consider your available time. How much time can you spend each day or each week monitoring and reacting to economic events?

Seriously determine how much time you can spend monitoring and updating economic events
Seriously determine how much time you can spend monitoring and updating economic events

Decide how to access information from the economic calendar

Based on your experience and available time, decide how you want to access information from the forex calendar. You can choose an automatic or manual solution.

If you have experience and plenty of time: you can choose to follow the world economic calendar in detail and perform your analyses and assessments.

If you have limited time or little experience: you might consider using automated services or tools to receive notifications of important economic events.

Adjust the inspection schedule to suit your trading schedule and goals

Determine your trading schedule and the best time to perform an Forex Calendar check. This may be in the morning before the market opens. Or at the end of the day when the market closes.

Set reminders or alerts to check the economic calendar daily or weekly, depending on your trading frequency. This helps you not miss any important economic events and optimizes the process of managing risks and finding trading opportunities.

See more: Instructions for registering an Exness account

How to limit risks on economic news?

To limit the risk of trading on economic news, here are some measures you can take:

Use Stop-loss

Set stop-loss levels for each trade to limit your risk. This helps you automatically cut losses when the market moves negatively and minimize losses.

Manage trading volume

Make sure that each trade does not exceed a certain portion of your total trading capital. This helps minimize loss on each trade.

Manage trading volume to manage capital well
Manage trading volume to manage capital well

Diversification

Diversify your portfolio by trading multiple currency pairs. Even trade different asset classes. This helps minimize the impact of a specific economic event on the entire portfolio.

Be careful with leverage

Use leverage carefully, especially when trading on economic news. Leverage can increase profits, but can also increase risks.

Update on news

Always stay updated with information from reliable economic calendar sources. Remember to monitor market movements after economic events are announced.

Remember, trading on economic news can be very risky. There is no way to eliminate these risks. However, by applying the above measures, you can minimize the risks. Most importantly, it increases the likelihood of success in trading.

Conclude

In the exciting and volatile world of the forex market, understanding and using information from the world economic calendar is an indispensable part of successful trading. Smart traders will always be those who update and adjust their strategies based on economic events. This can be the deciding factor between success and failure in the forex market. Learn Forex Trading hope you have a detailed understanding of the economic forex calendar and can effectively apply it to your trading strategy.

frequently asked Questions

What types of events are typically published on the economic forex calendar Forex?

Important economic events are often announced on this site. It includes interest rate releases, consumer indexes, data on inflation, retail sales, and global political events.

How to take advantage of information from the calendar to trade with trends?

You can leverage information from the economic calendar to identify long-term trends. Even find trading opportunities based on signals of important events.

Should analytical tools be used to adjust trading strategies from the economic calendar?

Using technical analysis tools can be an important part of adjusting a trading strategy. Based on information from this calendar, it provides buy or sell signals to traders. 

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