So first visit our economic calendar – forex calendar – Forex calendar important events and releases that affect the forex market
There are correct and incorrect ways to use an economic calendar. Even though it may seem obvious how to use one, that isn’t always the case. Economic calendars normally contain the following information; news released in the US, European and Asian world regions, the time in GMT when that information will be released, and how the foreign exchange market will respond to that information.
Many traders who are new to the foreign exchange markets believe that you should trade based on the economic information that is announced. However, this is not the case. Often times, traders don’t have the available knowledge and ability to respond to the information. Imagine that you are privy to this economic information. By the time you have analyzed it and then made a decision about what trade strategy to follow, that information is no longer valid. You might be entering the market on a trend that is ready to change.
Just because an economic calendar and news information is pointing in a certain direction, don’t use that as a reason to make a trade. Releases of new news information can cause a short-term change in the market. It doesn’t necessarily mean that something long-term is going to take place. Because of that, if your chosen trading strategy indicates that you should make a certain trade, then go ahead and do it.
The economics calendars help you manage your trades but you shouldn’t make trades based only upon the information that is presented. Basically, economics calendars allow you to do the following. First, they let you make an education decision about whether or not a piece of news information is going to have a large or small impact upon the direction of the market. This can help you decide what to do with current trades. For example, if you believe that the information released will not be detrimental for your trade, then you can make the decision to do nothing. However, if you believe the information could have an impact on your trade, you can take the steps necessary to minimize your losses.