In this article will be explained what the economic calendar is and how to find it and use it.
You have probably heard the name many times and you have asked yourself: what is the economic calendar?
If so please read here the full guide for it!
What is the economic calendar?
When you want to start trading you need to decide in which market to invest and when to invest. A good techinque is to read the economic calendar first.
A good source for it is the website investing.com where the calendar is foundable and visible in all the languages.
In it you can find the main events of the day, the week and the net week.
For every event is visible the interested market (i.e. USA, Europe, Japan, etc.), the time when this event is happening, what it is about and its importance.
The importance of an event is showed by the number of bulls or stars next to it. It can go from 1 to 3 and three means that the event is very important and can change a lot the price and make the market very volatile.
How to trade with the economic calendar
There are 2 different ways you can trade following the economic calendar:
- the easy way
- the volatile way
1- Easy Way
Following this techinque means to invest in the markets which are not touched by the coming event.
For example if at 14:00 there is an important event in the Japanese market, a trader following this techinque will invest in all the other markets but in the japanese one.
Doing so ensure a more stability in the trades, but on the other side probably less profits.
2- Volatile Way
This is the techinque which involve the use of the economic calendar.
For example if there is an event coming soon in the american market marked with 3 bulls a trader waits till that time to see how the price changes to eventually enter in the market.
This technique exploit the volatility cause by the event. It is possible to make a lot of profits following it but at the same time it involves more risk.