How to trade on financial markets? This is a question that all interested beginners ask themselves. To begin with, one should find a reliable platform and broker who can advise on how to act, as well as will serve as an intermediary. There is also the feasibility of copy-trading a successful market participant.
An economic calendar, as implied, is the source of news and announcements of the financial world. Learn how to read it to gain profit in the Forex market.
Despite the initial strategy a trader chooses, gaining some experience, you would like to increase the profit and to proceed to a more advanced level. Thus, you become interested in using more advanced tools provided by a particular trading platform.
Reading and understanding charts with trading indicators, utilizing a trading calculator to decide if a certain deal should be carried out. Among such tools, an economic calendar is provided on a trading platform.
What an Economic Calendar Is
In general, this is a compilation of events and breaking news of the economic world that have a significant impact on the global financial market. Thus, if a trader would like to be among the first to discover the future trends and enter or exit from a profitable trade, checking an economic calendar and analyzing it is a must. Which information will one find on such a calendar?
- Major events from the countries participating in the financial markets;
- Data is automatically refreshed upon a piece of news release;
- Notifications on major events that can be set or turned off;
- The countdown for events that have got a certain timeframe;
- News and information related to a particular recent event;
- Filter by keyword, impact on the volatility, category, date, country, etc.
Who Might Need an Economic Calendar
First and foremost, traders interested in long-term investments should keep abreast of the news and announcements in the world of finances. Based on microeconomics, the economies of countries across the world influence the trends of the Forex markets. Thus, if a trader wants to invest profitably and reduce the risk to lose money, reading and analyzing an economic calendar is a must.
How to Read It
- Pay attention to the time: The events are presented chronologically with the view of the local time of a particular country. What is more, the calendar shows when a new release is expected so, a trader can wait for a new announcement or set notifications.
- Currencies are indicated: When something crucial is happening in a certain country, next to the geographical location, one will find the currency. Thus, it is easy to predict which one will be influenced.
- Indicators: a calendar also provides indicators showing the probability of a certain event impact on the financial market.
All in all, an economic calendar is a useful tool for long-term trading. Besides, the data provided there is structured and well-arranged. Thus, a trader should just start using the information regularly provided on the calendar so that not to miss out on great chances to gain profit.
Recommended Online Brokers for Stock Trading in India
Kathleen Brooks is UK and EMEA research director and based in London. She uses both fundamental and technical methods in her analysis. Her philosophy of market analysis is to break things down to their most simple parts and build from there.
Kathleen has regularly contributed to Yahoo Finance, Reuters and often quoted in international publications such as Financial Times and the Wall Street Journal.