If you are new in the trading business then you need to understand the basics to turn it into a revenue-generating activity. You need to understand the markets, the very commodities that you want to trade, and such to become a better trader. Some people engage with the trading business on their own terms, by day they are at their old jobs and by night they are avid traders trying to make way for themselves into the business. So, at the end of the day, it is up to you whether you want to adopt this business fully or if you are alright with doing your old job and stepping into this business as well. The economic calendar is another aspect of the forex market that you need to understand as without the basic knowledge of this thing you can’t make any solid progress as a trader;
What is the economic calendar?
An economic calendar is a resource that allows traders to understand or learn about the important economic information that is scheduled for a specific day or time. All such events are dictated in a dedicated timeline on the economic calendar, in easier words think of it as a panel on which all the important and upcoming financial elements will be displayed. You are less likely to miss these events as the calendar issues proper notifications to the trader and this way they know which event is up and in how much time.
Some of the events that you can learn about with the help of the economic calendar involve GDP, the consumer price, and even the turns and twists the forex market is taking. It doesn’t matter at what time frame you trade or how active you are throughout the day it would still be great to have an eye on the upcoming market trends and events as a way of refining your trading and increasing your odds of making good money in the process. You can have further details in the Fomc meeting as conducted by your dedicated forex representative.
Tips on how to use the economic calendar in a better way
Well, there are a bunch of things that you can do such as staying active on your dedicated forex partner site and having the economic calendar in front of you at all times. Following tips will help you to make the most out of your economic calendar;
- When the market is in tumble, this is where an intraday trader shines and volatility is their absolute go sign. The economic calendar can help them understand the upcoming financial events and then make a suggestion such as would it be able to increase market volatility or not.
- With technical traders, the continuation patterns are an absolute hit and that is where they learn about the current goings of the market and what they need to do about it. The economic calendar can be of huge help here.
- Right before the market close time there is either going to be a strong bullish or bearish run associated with the currencies or commodities you are trading with, keep an eye for any news pertaining to a specific currency or commodity with the economic calendar as it just might make your day