October 8, 2013

Using Calendars on the Foreign Exchange Sydney Market

Foreign Exchange Sydney

Using Calendars on the Foreign Exchange Sydney Market

When entering the foreign exchange Sydney market you will be introduced to various trading tools.  One of these tools is known as a forex or economic calendar.  This trading tool is used as a means of notifying traders to different economic and political events that can impact the forex market.  There are various events that can do this including a rise in unemployment rates, a change in the consumer price index or the results of a country’s elections.  The foreign exchange calendar overlooks all of these happenings, but it will only supply you with the most relevant and useful releases.  Due to this feature it is used by both fundamental and technical traders alike.

Using a forex calendar on the foreign exchange Sydney market

The majority of traders will utilise a foreign exchange calendar due to the impact forex news can have on the market.  As effective traders must keep abreast of global events, traders will view this trading tool as essential.  It makes reviewing forex news much simpler as you are able to examine influential news without having to sift through the multiple releases.  Furthermore, it provides the most relevant news for your currency pairs making it highly beneficial as well as convenient.

Forex calendars have been associated with fundamental analysis where traders use news releases to predict market movements.  The traders who use a fundamental strategy will utilise the forex calendar making analysis simpler as it categorises the global events based on their influence on the foreign exchange Sydney market.  This will allow the fundamental trader to identify which is the most important item and which can be deemed irrelevant.  For experienced traders these calendars can mean the difference between experiencing profits or losses on trades.

Not using a forex calendar on the foreign exchange Sydney market

As with all trading tools, the foreign exchange calendar is not a compulsory item to have in your trading system.  However, if you choose to eliminate it from your strategy there is a chance you will be placing limitations on what you are able to do.  By not having the information this calendar can provide you will be damaging your analysis of the market.  It is recommended you have the calendar available even if you do not use it.  These calendars are generally built into a trading platform’s system or can be downloaded from the internet free of charge.

Final words on using the forex calendar

When trading the foreign exchange market is it imperative you are aware of all influences, especially if you choose to use a fundamental trading strategy.  You must be able to determine how factors will influence the market and how you should behave when placing any pre-emptive trades.  Of course, you must realise that the market is highly volatile and can experience unpredictable changes in market movement at any time.  Yet, by utilising a forex calendar you have a better chance of predicting and managing any volatile periods on the foreign exchange Melbourne market.  As a final note, it is recommended that you check your calendar regularly with the frequency being dependent on your trading strategy.



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