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Home Insights & Advice Why you need to employ an economic calendar

Why you need to employ an economic calendar

by John Saunders
16th Oct 20 3:06 pm

Effective work in the financial markets is only 1% of luck and intuition; 99% of your success is dependent on your knowledge and expertise in this business. Success in trading is associated with the ability to predict the movement of assets and make bets on their behavior. The latter may seem to be chaotic and unpredictable; in fact, it obeys the general laws of the market.

In order for the trader to keep track of key news and events on the stock exchange, the economic lich Forex calendar was created. Anyone who wants to trade on Forex should be able to use it. Let’s take a quick look at the main feature of the tool so that you have an idea of what information you can get out of it.

What is an Economic Calendar?

All trading assets, ranging from currency pairs to oil and gold, are subject to the influence of external general economic factors, such as inflation, unemployment, changes in the lending rate, the central bank, and more. All these non-obvious things ultimately affect any market product offered to other participants. The economic calendar is a summary of the financial and economic indicators of the world countries that affect the market value of exchange trading instruments:

  • Currency pairs;
  • Raw materials and precious metals;
  • Stock indices;
  • Shares and securities;
  • Cryptocurrencies.

The summary of the economic calendar can contain a variety of events, so the task of every trader is to correctly interpret the information received and use it in the trading strategy.

Important events in the Economic Calendar

Using the calendar is easy; the main thing is to learn how to filter events by importance for your own trading strategy in order to drain or buy assets at a bargain price. The following indicators deserve your special attention:

  • Parameters of economic growth
  • Inflation index
  • The size of the interest rate of the Central Bank
  • Unemployment rate
  • Growth in real estate sales
  • Retail turnover
  • Fluctuations in the value of securities

The most important indicator is the level of economic growth, which largely determines the significant financial changes in the exchange and world trade markets.

It consists of three factors: consumer opportunities, investment, and budgetary spending, which together determine the growth rate of the state’s economy.

Final verdict

The economic calendar is an important and effective tool in the arsenal of any Forex trader who wants to be successful and make stable money trading in the market. The fragmentation of information and its diversity in the economic calendar does not allow keeping track of all the events from the primary sources. However, the calendar collects all the data in one place, providing concise information about the most important aspects.

 

 

 

 

 

 

 

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