How to Trade Forex with the Economic Calendar

Insuroke.com – Using the economic calendar to make money in forex trading. Using an economic calendar with your forex trading methods can help you predict and figure out when to open a position in the forex market. Technical traders and people who use fundamental analysis need to understand this trick if they want to do well in the trades they try.

Using the economic calendar, technical traders can determine when to stay away. On the other hand, this calendar and information are essential for traders who use fundamental analysis because it helps them plan their analysis and trading strategies.

What is the economic calendar, though? What does it matter? And what about using an economic calendar to make money with forex trading? In this post, the admin will discuss the economic calendar and how it affects trading strategies.

What is a calendar of economic events?

In trading, investing, and business, an economic calendar is used to track how the market is moving. The economic calendar is a list of events and information about how the economy, market, and currency of a country or industry change over time.

It’s called an economic calendar because it looks like it and can be read like a regular calendar. This calendar has boxes for each day that show what happened.

Some economic calendars can tell you the main effect of what happened on a particular day. For example, if there is a lot of chaos in country A, it could slow down the economy and make the currency worth less. Or when an industry from country B is successful at creating new ideas and the most up-to-date technology, which makes it stand out.

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Whether you are a trader, investor, or some other kind of investor, you can make predictions about what will happen in the market.

Traders who use fundamental analysis must fully understand Forex trading methods that use an economic calendar, so they don’t lose money when trading.

Also, many trustworthy traders who have been successful always look at how information in the economic calendar can be used before trading on the open market. They are not careless when they sell and don’t give in to desires that can lead to significant losses. Before trading, they use everything that has to do with their analysis to draw accurate conclusions.

How to Trade Forex with the Economic Calendar

Using the economic calendar to trade is a highly complex way to do business. But if you work hard, you can figure out where the gap is and how to use it correctly. And no matter how hard it is for you to use this economic calendar to practice forex trading methods, you should always study it because it is helpful.

And for those of you who are just learning about the economic calendar, here is a short guide on how to use the economic calendar to improve your fundamental analysis when trading forex.

1. Choose the calendar you want to use

Many websites give you an accessible outline of the world’s economic calendar, like the site Forex Factory. You can get pretty complete information about how each week’s events are low, average, or high impact.

Some other sites, like Investing, OctaFX, and FBS Forex, offer the same services. So, please pick an easy-to-find and easy-to-read calendar.

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2. Pay attention to high-impact events

In the economic calendar, information or events are usually broken up into three groups:

  • Low Impact with one bull’s head or green color
  • Normal Impact with two yellow bullheads or symbols
  • High Impact with three bull heads or red color

As a trader, you should only pay attention to information and events that significantly affect you. An example is when there is a Monetary Policy Meeting, when rules about the economy and activities change, when the Federal Open Market Committee meets, and more.

Because information with a high impact wants to share the effects of changes in currency numbers quickly and helpfully.

3. Check the calendar for the forecast

Next, you need to pay attention to what the calendar says about the forecast and actual and previous weather. Previous means numbers for a future time frame, forecast means predictions of currency numbers for the current time frame and represents the recent currency numbers.

The forecast and the previous will be listed first before the market opens most of the time. On the other hand, the latest actual will show when the latest news is shown on the web or on TV channels like CNBC that cover business news.

When doing the analysis, you need to look at whether the numbers from the past and the ones from the future are bigger or smaller. Because the difference between what happened and what was expected is usually not very big.

If the current number is higher than the last one (shown in green), the currency is about to get stronger. On the other hand, if the value goes down, the money will weaken.

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4. Open the position when all the analysis is done

When all the research has been done, the latest economic news has come out, and the currency you want to buy has moved in the direction you expected, it’s time for the OP, another name for an open position.

The OP is tried 3 to 5 minutes after the latest economic news is released most of the time. Remember that earth financial information uses time in New York, USA. Because of this, the time in Indonesia is 11 to 12 hours different. You need to know the best times and lengths of time to trade forex to do that.

In trading, don’t forget about how to handle risks. If you don’t want to lose a lot and use up your trading capital or difference, don’t let your ego get in the way of fundamental analysis. Even though you are very good at forex analysis, your personality and passion are what will bring you down.

It’s like combining an economic calendar with a forex trading method. You might have to get used to reading the calendar and using techniques for fundamental analysis. If you want to learn how to trade forex, you have to keep trying.

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