Events Can Affect Forex Price
So depending on the Forex pair you are trading, please look at the events that is happening at the countries. We expect these events to have an effect on the country currency strength.To use this Forex Calendar Events to your advantage that hopefully turned into positive results, you should anticipate the announcement and the effects it will have on your interested pair. Click on the event and more details (including a chart) will help you in your anticipation of the results.
Trading Forex Calendar Events might require experience and is really not suited for new traders. It can either make you boat loads of cash in a short period of time or burn through your portfolio really fast as these events that we have highlighted are truly market shakers. Only trade events if you know what you are doing…
Consensus vs Actual Economic Results
So with the table below we have the previous results and also a consensus forecast. Comparing the previous and the consensus forecast, you probably have an idea if the numbers are improvement or declining. Almost all the time, the market is quick to factor in the improvement or decline in the results based on the consensus forecast. On the announcement date, it’s when there is a surprise that you will see an upward or downward spike when the actual results is too far from the consensus forecast.
If the actual result come inline with the consensus forecast, then they probably will be much volatility. If you like to trade Forex Calendar events, then you should do well if you can find and get into position early where consensus forecast has a history of messing up their forecast for certain countries or economic forecast.
We prefer to be aware of what’s coming and react only when there is a spike. Again, there is no right or wrong in trading… it all boils down to your trading preference and style.
Practice Trading Forex Calendar Events with Demo Accounts First
The best way to approach this is of course to trade on demo accounts until you have consistently profited from trading events for at least (and we emphasize) 3 months. This is one approach that we know works but requires plenty of skills and experience to make it work consistently.
The worse thing (that we do not want to see) is you make some fast cash without knowing what actually happened. When luck is on your side… yes you can make some fast cash. But to us, this is equivalent to gambling. Please do not fall into this trap. Demo account first before real money.
If you need a demo account, kindly use our preferred broker. They have simply been too excellent for us.