Reading an Economic Calendar while Trading in Forex
About 80% of the Forex market participants shed away from their career due to the marketplace’s hostile and harsh nature. Only a few instruments have been developed solely to ease down the life of a trader. An Economic Calendar is one among them.
What’s an Economic Calendar (EC)?
It is a kind of resource that enables investors to reach different financial information and its release schedule. Examples of such information include the consumer-price-index, GDP, and Non-Farm-Payroll.
An ideal financial journal segmentizes all these information and events basing on their forecasted impact level on the market. So, investors can keep track of them without entangling themselves with a massive hassle.
How to Read an EC
Traders who are a fan of various fundamental and technical factors to keep track of impending price movement are likely to be fond of an economic eventtracker. Reading the timetable at the beginning of the day will familiarize the reader with the approaching critical events.
If one doesn’t customize the user interface, the default mode will expose every single piece of financial news covering the major economic zones. If the interface gets overwhelming to an investor showing massive information, a customization option is also available to his rescue. He can deploy the chance to bring a cozy look to the interface. Check over here and keep yourself tuned with the latest market updates so that you don’t take the wrong decision in the wrong time. Be strategic with your approach to beat the market.
Customization of the Calendar Interface
One has to look into the previous, current, and future events by clicking the buttons for respective types of events such as Today, Tomorrow, and the Next Seven Days. It is recommended to set the timezone for the most suitable one. One can do it merely by pounding the “Timezone” button. Then he can click the button “Currency” and then the “Important” to find the most relevant and crucial events. Typically, people choose GMT -4 or GMT -5, or the Eastern-Standard Time as the most comfortable time.
One can also select every single event to learn details about them.
Advantage of Deploying an EC
The overall benefit of using a journal is three-fold:
- Better risk management
- Position for planning ahead
- Extra features and functionalities
1. Risk Management
When a trader starts to follow a financial calendar, it enables him to plan his trade by analyzing the events. It also helps him prepare for any potential turbulence or breakout in price movement. Once an event enlisted in the EC appears, he can recognize the nature of volatility that comes along, judging the data in contrast to pre-expectation.
If one has the basic idea of managing risks properly, using a financial event schedule will make the process more feasible.
Nothing can help a trader more than an EC in planning for the upcoming market condition. When a potential report is about to be published or aired, he knows what changes should get adopted to cope with the impact brought about by the story.
Such awareness of the upcoming events is necessary to effectively devise a plan for an impounding critical situation.
3. Getting benefit from different features of the calendar
A comprehensive and user-friendly financial event schedule provides its users with various beneficial features. You can name the above-mentioned customization option as an example of such features. Other than that, a calendar comes with functionality offering the convenience to choose a particular timeframe, to set notifications and alarms for some events and activities, and to apply various filters. Such options increase the relevance of trading strategies.
Reading an Economic Calendar can be incredibly beneficial to a trader. It will raise his trading standard and add an extra perspective to his trading method. Only traders who exploit such a events’ schedule for some days can realize the difference.