It is impossible to trade Forex if you don’t know anything about things that happen there. But it’s possible to get all knowledge required to become a successful trader. Just several decades ago people believed that knowledge was the amount of information acquired through experience or education and kept in memory. But today the concept of knowledge became different – it’s the information available anytime you need it. Therefore, today people prefer saying, “I know where you can get information about this”.
For traders, information is the most important tool. Therefore, to become a successful trader, you need to know where to get this tool and how to use it.
Let’s figure out what kind of knowledge traders need? The world news that affects financial markets, of course! This data involves everything – price fluctuations for different assets, political instability and even the weather forecast. No kidding – the market is extremely influenced by everything! Hence, a trader needs to analyze everything. And in order to analyze the world’s news, you need to find it and collect in one place. Seems too complicated? Not really, if you have access to the economic calendar that includes all useful information about the most important global events.
What is the economic calendar?
The economic indicator calendar is one of the most important tools a trader should utilize. It allows monitoring all economic news right after their publication and get all necessary data for trading. One of the most useful features the calendar has is the ability to determine, which of the events are the most important, also traders can view the history of market changes and get acquainted with the suggestions of analysts. It turns out that without the calendar, Forex trading would be very difficult.
How to use the Forex trading calendar?
Before some important economic news is released, market analysts make forecasts. If the forecast is justified and the predicted results correlate with actual data, the market’s reaction won’t be significant. But if the actual indicators go up or down, then the Forex market will become volatile. That is why there is a basic rule you should remember when trading on the news. When the news is better than the forecast – it’s a signal to “buy” an asset. When the news appears to be worse than expected – you should “sell”. If the values remain the same – you need to maintain neutrality.
With the help of the Forex trading calendar, a trader can freely navigate the world economic events, such as data on unemployment or inflation rate, compare received information with forecasts and choose the moment when it’s worth entering or exiting the market. Since all important events have a direct influence on market trends, the economic calendar tells about the publication of this data in advance, and traders can take care of their deals.
How to choose the best economic indicators calendar?
All economic indicators calendars are similar. They can have differences in their design and functionality – but they all serve the same purpose. So, the main factor you should pay attention to when choosing the economic calendar is your personal needs and preferences. However, there is a number of features that you need to take into account.
First, a good Forex trading calendar should display the latest information. This is quite understandable, but sometimes you can come across the calendar that does not update the page automatically. As a result, users can’t see the published news until they manually refresh the page.
Second, a good economic calendar is to be simple, convenient and intuitive. The less advertising banners and other distracting elements the calendar page contains, the easier it will be for you to work with it.
Third, if the website is multilanguage, then make sure there is an option to switch languages and change the time zone.