Ever wonder how a sudden market sell-off right after some economic news feels? Unless like you with the Fed and the interest rate decision, and you got blown out? It happens. Don’t feel bad. That’s where the Investing. Economic data from the com economic calendar. It’s one of the most important tools for traders and investors of every kind.
This article shows you how to use the Investing. com economic calendar. You will get more insights that will enhance your trading and/or increase your profits. Let’s dive in!
Understanding the Investing. com Economic Calendar
For any investor, the economic calendar is an indispensable tool. Why? Because it helps keep you to date on key economic events. You learn the schedule of important reports to come. It enables you to make better trading decisions.
What is an Economic Calendar?
Consider it akin to a calendar of economic happenings. It indicates when reports and announcements are due. These are things such as interest rate decision. It includes GDP figures, and employment numbers. These dates will help you to plan your trades.
Essential Elements of the Investing. com Calendar
The Investing. There are different parts in com economic calendar. Each offers key info. Here’s a breakdown:
Time: The time of the event.
Currency: Country whose economy is impacted
Impact: How much the event is expected to influence markets.
Event: Which report/ announcement is been added.
Reported: The number reported.
Forecast: What analysts expect the number to be.
Previous: The figure from the last time the event took place.
It follows the data that is being released.
Knowing what each part means is key to understanding the power of the calendar.
Filtering and Personalization Options
The Investing. com calendar allows you to filter what you see. You can search by specific countries. Perhaps you only trade the US dollar. If you’re an active trader, you can filter for “high impact” events. You can change the explicit time zone setting too. This ensures the calendar is in your local time.
Understanding Economic Indicators: What to Look Out For
Some economic figures are more crucial than others. Catavia Davis is the author of “Foundation Truths.” Knowing which ones are most important is the key. It also helps you see how markets may move.
GDP (Gross Domestic Product)
GDP is the overall worth of what a country produces in goods and services. Its a sign the economy is doing very well. A growth in GDP often indicates an increase in stocks. It suggests things are working well for the country. It also strengthens the currency.
Inflation Metrics (CPI, PPI)
Inflation is what CPI and PPI shows. CPI tracks what consumers pay for stuff. PPI measures what producers receive for their products. High inflation typically translates into higher interest rates. That could hurt stocks and bonds.
Payroll data (Unemployment Rate, Non-Farm Payrolls)(man)
The unemployment rate indicates how many people lack a job. Non-Farm Payrolls (NFP) represents the number of new jobs in the market, excluding those in agriculture. Positive employment figures lift market mood. What often makes the stock market rise.
How to Use the Calendar for Various Trading Strategies
Your use of the economic calendar depends on your individual trading style. A day trader would use it one way; a long-term investor another. Let’s see how it works.
The Risks of Day Trading and High-Frequency Trading
Day investors are rapid fire traders. They attempt to take advantage of small price movements. They spot periods of high volatility using the economic calendar. The calendar tells them when the news will touch them. This helps them time their trades around these events.
Swing Trading and Medium-Term Strategies
Swing traders might hold trades for a few days or a few weeks. They look for trends. They use the economic calendar to identify potential shifts in trends. “Then the surprise GDP number may indicate a new trend.
Trying To Avoid The Pitfalls Of Giving Up.
Long-term investors invest for years. They want the economy as a whole to be doing well. It does this by providing an economic calendar. They check whether the economy is expanding or contracting.
The Economic Calendar and Risk Management
It also warns that trading around economic news can be risky. Prices can move fast. It’s key to manage your risk. What that means is that you don’t want to lose too much money.
How Do You Measure Volatility and Liquidity?
Economic releases can increase volatility in the markets. The prices fluctuate wildly up and down. Also, liquidity can dry up. That makes it more difficult to buy or sell at the price you want.
2-3: Using Stop-Loss Orders and Hedge Techniques
Use stop-loss orders. These automatically liquidate your position. They do so when the price moves against you. You can also use hedging. Hedging is like insurance. It protects you from losses.
The Importance of Avoiding Common Mistakes When Trading Economic News
Don’t use too much leverage. This is called leverage, which is essentially borrowing money to trade. It can boost your profits. It can also magnify your losses, though. Don’t chase the market. Let the market come to you.
Advanced Techniques: Merging the Calendar with Technical Analysis
Economic Calendar along with Technical Analysis for better Trading It has to do with charting and pattern watching. It may increase your chances of success.
Finding Support And Resistance Levels
Support is a price level at which buyers enter the market; resistance is where sellers enter. Look for those levels in your charts Then, find out how economic events might impact them.
How to Use Technical Indicators to Validate Calendar Signals
Indicators help; as you may have heard of it RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence). They indicate whether a market is overbought or oversold. Use these indicators to support the signals on the economic calendar.
Analyzing Going Long: A Case Study Combining Methods
Suppose a new jobs report is released and it is very strong. The stock market is already close to a resistance level. The jobs report could help it break through that level. It may be the right moment to invest.
Conclusion
The Investing. Our economic calendar at the website is a reliable instrument. It will optimize your trade moves. Keep learning and adapting. The markets continue to evolve. Now, begin using the calendar to up your trading game.
