Best Ways to Make Money Online Using a Forex Calendar

June 29, 2012 by  
Filed under Forex Trading System

Do you know what a forex calendar or economic calendar can do for you? And are you using it to the full potential in your forex trading? The economic calendar can be found at some of the forex websites, an example will be Forex Factory. It will help forex traders and investors about the upcoming major news and events. Here are some of the best ways to make money using a forex calendar.

Some of the very important and common economic information is interest rate announcements, non-farm pay roll, consumer price index, unemployment rates(which is the main concern in the financial world right now), retail sales, manufacturing PMI and lots more. There are news release almost everyday.

If you are trading on technicals and does not keep up with recent economics events, then you are missing out on a big part of the financial world. You will need to know the forex market conditions even if you are using technical analysis for your forex trading.

For example, you have a good forex strategy and it makes you nice profits consistently, but the strategy does not tell you when is a choppy market. Then how do you judge when is a choppy market? Here comes the market conditions that you will need to know. By keeping tabs on the forex calendar, you will be handed an extra edge on how your forex trading systems should be trading.

By knowing the timing of economic news release, it is not a forex signal for trading. In fact, you should not be trading 2 to 3 hours before any data is released which has got to do to the related currency pairs. For example, when there is going to be a interest rate announcement (a very big event) for U.S, then you should not be trading pairs like EUR/USD, USD/CHF, AUD/USD etc. This is to help you filter out those whipsaws that might happen when the announcement is being made.

Sometimes when a news is released, there will be a huge movement for a few minutes before the trend reverses again, those are fake signals that you would not want to take in. It is recommended that you take in trading signals around 15 minutes to 30 minutes only after the market is stabilized.

Without the aid of a forex calendar, you will hardly know when to act because you will have to be sure what is happening around and when is it happening. It’s very usual for a trader to check the forex calendar for a few times a day as it is one of the criteria in a trading plan.

So do you want to get the most out of your trading account? If yes, then you better start checking a economic calendar if you have not done so for your forex trading.

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Currency Trading Information: Forex Factory Calendar

February 14, 2010 by  
Filed under Forex Trading System

Article by James Roshwood







Any profitable forex trader needs constant access to forex trading news. World events, fiscal reports, economic index status changes, interest rate fluctuations all of these forex news items are essential for the trader to know.

You do not necessarily need to be able to predict the news and you do not have to spend hours studying statistical returns in order to work out what the next financial report is likely to mean. Naturally if you can do that, you could have a huge advantage in the forex market place, but most of us are not interested or knowledgeable enough to make best use of our time in this way. Forex trading from the basis of fundamental analysis is not the preferred choice of the average retail type forex trader.

But even if you prefer technical analysis, relying on charts and indicators for your predictions of price movements as most retail traders probably do, you should not ignore the economic and general news. It is still important to know what is happening in the world and when. In fact, the less you know about economics, the more important it is to be aware of the currency trading news calendar so that you can keep well out of the market at the time when major news is about to break. There is a very good economic news resource at the Forex Factory web site which gives an overview of the financial news events happening in the world on a calendar format which is free to view.

Since the foreign exchange market embraces countries from all over the world that operate in different time zones, you can be certain that there will be something that will be affecting trading conditions somewhere in the world pretty much most of the time. However, some of these events will be of more significance in causing price fluctuations than others. Because of the importance of the US dollar in the forex market, all traders need to watch for major announcements in the USA. Even if you trade a cross pair such as EUR/GBP you could be affected.

Then of course you need to watch the announcements in any country whose currency you are trading. So for example if you are trading EUR/GBP and EUR/JPY, you will need to keep abreast of announcements across Europe and Japan as well as those from Britain and the USA.

Fortunately, it is very easy to keep yourself informed. Many brokers offer forex news alerts and similar services. You can also find these elsewhere on the internet. You can consult a forex calendar to check when the next major financial results or announcements are due. You can transfer this to your own desk calendar or sign up for a service that will send alerts to your desktop.

In fact, if you are interested in finance and economics this type of information can be addictive. You may find yourself reading through forex blogs and financial trading forums for a large proportion of the available time each day. So do not take it too far. Remember, the whole aim of keeping up with currency trading news is to allow you to actually get online and trade armed with the information that has been gathered from the currency trading information news feeds.



About the Author

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