Economic Calendar

Economic Calendar

Economic Calendar

If you have ever done anything that has to do with stocks and markets, you have probably heard of the term “economic calendar”. Economic calendar is a type of calendar used by traders in order to keep track of all important market events. Traders should pay close attention to an event’s date and time and to various announcements marked in the calendar because this is what affects the way the market behaves. Economic calendars can be found on the various sites and are very easy to use. We will discuss this topic in the rest of our article, so keep reading!

Economic Calendar | Main elements

If you’re going to use an economic calendar, there are three elements you should pay attention to. First of all, there is the date. All Big Market Events that are supposed to happen in the future and those that have already happened are clearly marked on your calendar, so plan ahead and mark the events that will affect your investment target. You should also be aware of the currencies because the big market events usually affect only one currency, depending in which part of the world they happen. For example, if the news is coming from the Eurozone, then the euro is going to move a lot, so you are supposed to look for the Euro pairs to move the most. Last but not least, another important thing to look at is the values. Economic calendars usually have some sort of prediction next to an event, so you can use that to get the general idea what’s going to happen. By combining these three elements, you can predict how an asset is going to move and maybe detect a trend forming, so analyze them carefully. In the next paragraph we will introduce you to another important element that can help you a lot to interpret your economic calendar: economic indicators. Keep reading!

Economic Calendar | Indicators

An economic indicator is a piece of (macro)economic data that can help you interpret current or future investment possibilities. They can potentially be anything, but there are some specific pieces of data released by governments and non-profit organizations that are generally widely followed. The most important is the CPI (Consumer Price Index), an index measuring the weighted average of prices of a basket of consumer goods and services. Then there is also the GDP (Gross Domestic Product). As you can read in our article on Causes of Market Movements, GDP has a massive influence on all currencies. Apart from these two indexes, you should also be aware of Industrial production, Producer Price Index and Consumer Credit Report, just to mention some of them. Announcements and news regarding each of them are clearly marked in all good economic calendars, so that traders know what to follow and when to react.

Economic Calendar | Conclusion

Economic calendar is an indispensable tool for all serious traders. If you learn how to read it and how to interpret it, your chances of winning are going to increase significantly. Although there are a lot of elements that you should keep in mind, you really don’t have to be an economic genius to learn how to handle this tool. With it, you will know exactly when the market is going to shift and in which direction, so you will be able to react at the right time.

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FURTHER READING:

1. The Intelligent Investor (B. Graham, 1973)
2. The Mathematics Of Money Management: Risk Analysis Techniques For Traders (R. Vince, 1992)
3. Irrational Exuberance (R. Shiller, 2000)
4. Trading By The Minute (J. Ross, 1994)
5. The Ascent Of Money: A Financial History Of The World (N. Ferguson, 2008)

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