How to manage well Economic News on Forex.
How to manage well
Economic News on Forex.
For many traders, the most important before taking action step is to be well informed. Economic news is crucial to perform well in Forex trading.
To learn about economic news, consulting an economic calendar is essential, it will help you to see and understand the currency or currencies you’re going to trade in the market.
The economic calendar is a database containing the various programs and financial news in real time of the different currency areas. Freely available on various finance sites, it allows us to see the most important news about the pair to trade.
Some websites offer an economic calendar with in front of each pair symbols such as “!” or “*”. The more “!” or “*”, the higher impact the information on the volatility of the pair. For example, it will be the case of the EUR/USD today, Thursday, November 7, with the meeting of the ECB (European Central Bank) and tomorrow, Friday, November 8, with the Fed (US central Bank) publication of the unemployment rate. These two events will have a significant impact on the pair EUR/USD.
When events are important, traders should not rush, the best strategy is to wait and close position if they were opened or not open any new positions. Also, it is important to analyze carefully the trend on the graph, because in a very short period of time, the economic news could affect the trend which could be unfavorable to your trade. Ten minutes later, the trend will be clearer and it will be easier to follow the trend and continue safely with the trend without significant looses.
Posted by MBCFX