Best Ways to Make Money Online Using a Forex Calendar

Best Ways to Make Money Online Using a Forex Calendar

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.