February 23, 2021 | AtoZ Markets – Economic calendars are a useful tool for traders for many reasons. They act as a weather gauge to guide traders as they navigate the markets, knowing when to expect rough or smooth seas and which way the wind will be blowing as they take sail.
While some might think that economic calendars are only useful for traders who use a fundamental approach to the markets, the truth is that any type of trader will benefit from using one.
So, what is an Economic Calendar?
Much like a normal calendar that is used to remind individuals of important upcoming dates and events, the economic calendar helps traders to keep track of events that might have an impact on the markets that they trade on.
This primarily includes planned news events, such as speeches, meetings and data reports relating to employment and economic activity.
Economic calendars, however, will vary according to what markets a trader is interested in, be it Forex, cryptocurrency or stock markets. Yes, there may be overlaps between these calendars but the more information that can be included, the better. It’s now easier than ever to receive Economic Calendar notifications, with brokers such as LonghornFX providing weekly updates directly through your Instagram feed!
Who Needs an Economic Calendar?
As we’ve already mentioned, every type of trader can benefit from using an economic calendar. All it takes is a few minutes a day to catch up on the news. Skilled traders may even choose to curate their own calendars to include the events which, from their own experience, have had the largest impact on the assets they trade.
Moreover, many of the important events that have the potential to impact the markets are recurring. This means that with time, a trader will be able to know exactly what events will be taking place and be prepared and available to trade.
How Does an Economic Calendar Help you Trade?
News stories are one of the main factors impacting markets on a day-to-day basis.While many news stories may be unplanned and unexpected, there are several pre-scheduled events that can trigger market volatility. This is why economic calendars are one of the key tools to help traders mitigate risk.
Some traders may choose to use stop loss orders and take profit orders at the time of an expected news announcements to protect their funds, while others might set their alarm to trade as soon as an event begins.Usually, economic calendars include forecasted results and market sentiment predictions.
For example, if a data release shows worse-than-expected results, a bear run could be expected. Should the data show better-than-expected results, traders could anticipate a bear run.
Get Free Economic Calendar Updates Straight to your Newsfeed
Whichever way you choose to integrate economic calendars into your trading strategy is down to you.But luckily, there’s no need to input too much effort to put together your own economic calendar. By following LonghornFX on Instagram or Facebook, you can get weekly economic calendar updates, straight to your newsfeed!
Don’t miss out on opportunities to profit. Offering narrow spreads and swift withdrawals, LonghornFX provides the opportunity for traders to trade smarter. Create a free demo or live account today at LonghornFX.