Economic calendar as a tool to boost profitability
Who can benefit from the economic calendar?
The question of how to increase trading profits is brought up by both beginner and professional Forex traders. The thing is the financial market is dynamic and unsteady and it easily adapts to new trends. Demand, offer, currency crashes, crises, - the market has to adapt to new daily events and unsteady conditions. Your indicator may make accurate forecasts today, but once the system adapts to a new factor, your indicator will be no longer useful. Just like a rapidly mutating virus, the market becomes stronger, and traders need more and more "medicines". So, a trader needs to keep abreast regardless of what is going on here and now. As they say, "fix the roof before it starts to rain". In other words, look for alternative ways of increasing the profitability of your trading strategy because the old one may grow out of date.
What is a trader's economic calendar?
The economic news calendar keeps traders abreast of the most important financial news. This information is extremely important to a trader because the market gets literally stormy when economic news is released, and it's hard to make the right forecast. What's more, a market fever can start a few hours before an important news release, which will no doubt affect your abilities to forecast prices. It's essential to know when a news release will take place since a real professional starts working, i.e. buying or selling, at a right moment, when the Forex market is easier to make a forecast about.
There are a number of strategies based on news trading. However, they are associated with high risks and tiny timeframes. The economic calendar is indispensable to the lovers of this kind of trading. When, what time, where and by whom news is broadcast - every detail is important to them to catch the moment and profit the most from Forex trading.
In general, the economic calendar will help you stay tuned and save your money on pursuing distant goals.
How to work with the economic calendar
Let's start with selecting our time zone. It will help us to get news in time. Remember, it's a very important moment! You can select your GMT zone from the drop-down list in the top left corner of the calendar (1).
The economic calendar also filters news by date. You need to select a date and click on “Search” (2).
The Holidays Calendar (3) keeps you abreast of any changes to trading sessions.
The "Filter" tab (4) is worth much more attention as it allows us to focus on what we are interested in by limiting news to be displayed. You can choose a country and news priority from this tab. However, you should be careful when dealing with news priority as you never know what is going to affect your favourite forex tool. Economics is a complicated system where all the components are interrelated.
Besides, you can acquaint yourself with worldwide interest rates (5).
Those are the basic aspects of working with the economic calendar. So, use it wisely!
Happy trading my friends!