When trading currencies, you want to surround yourself with as many useful resources as possible, in order to maximize your chances of profiting and success in the Forex market. Some Forex traders will focus more on technical analysis, by looking at price charts and graphs more than studying fundamentals. Similarly, some will focus on fundamental analysis more and neglect the technical aspects of trading currencies. No matter what type of analysis you prefer or focus on, you should try to conduct both types of analysis. An economic calendar can prove to be a great tool and these types of calendars can greatly assist a Forex trader’s conducting of fundamental analysis. These types of calendars can definitely help to increase your chances of profiting and success in the market for currencies.
There are many Forex trading calendars available on the internet. The majority of them are free too, so you have nothing to lose when implementing a calendar of economic events into your trading of currencies. Some are obviously going to be better and more thorough than others though, so you should really just look around and perhaps even consider using more than one economic calendar. The calendar you use might even depend on your Forex trading system and the currency pairs that you trade.
When looking for a Forex trading calendar, you should definitely look for one that has all of the financial world’s most important economic events, such as the ones that develop in the United States. The US is very important and plays a significant part in the world of the financial markets.
Some news, announcements, releases and such will come out on the same day. Some will be recurring too and come out on the same day of each month, for example the US nonfarm payroll (AKA the job report), which is published on the first Friday of every month.
The currency trading calendar you implement into your trading should also provide updates of any other related news and information that you may want to take into account, as well as scheduled announcement highlights.
The real benefit of implementing an economic calendar into your Forex trading, is that you can take advantage of fundamentals more easily and plan ahead. A Forex trading calendar will allow you to plan for future opportunities that might allow you to make an easy profit. By keeping updated and knowing about certain, important events in advance, you will put yourself at a great advantage. If you learn to understand how the effects of financial announcements that are planned ahead of time on, you will be able to avoid times of higher volatility and you will be able to predict currency market movements around certain events more effectively.
In conclusion, by using an economic calendar in Forex trading, you will be able to potentially make more profits, as you will be able to predict FX market movements in advance and stand more of a chance of benefiting from your fundamental analysis. By using a Forex trading calendar, you will put yourself at a great advantage in the market for currencies. The Forex market can be very unpredictable at times and its volatility can cause many to deduce significant losses. By planning ahead of time and using a currency trading calendar, you will be able to potentially avoid less desirable market conditions and you will be able to potentially spot profitable opportunities in advance. This will in turn help you to both maximize your profits and minimize your losses, which is what Forex trading is essentially all about. Remember, some Forex brokers will provide their own economic calendars for free to all their clients, however even if your broker does indeed provide a good and solid calendar, you should always consider diversifying your sources of information and keep track of more than one calendar in case the calendar you use misses an important event out, for example.