The economic year is brimming with a basketful of events and what not’s to look forward to. This will be a rundown of some of the events that you need to mark on your economic calendar to start elevating your trading game. First and foremost, the Economic Calendar is the professional and comprehensive calendar economist, traders, and market analysts use in order to track eventful dates that can lead to market-moving events.
See also: Pros and Cons of Forex Trading
Events to Remember
The number one thing to look forward to as a budding trader are the Gross Domestic Products or GDP reports; this is the time where you can adjust and gauge the state of the economy a country has before spending a lot of cash on it.
Trader Tip: Learn to revisit previous GDP reports from several countries you are willing to invest money on, sometimes, a pattern is seen or a trend can be followed with the increasing and decreasing of a country’s GDP, master the countries’ GDP reports and learn when to take a move.
The next one to look out to is the Purchasing Manager’s Index of PMI; what this is a report that can be used to determine a company’s economy through compounding several thousand of purchasing managers’ from the biggest companies make.
Trader Tip: Tracking the PMI is much easier and predictable as it is reported monthly, as a novice trader; this is one exercise you can practice on a monthly basis. Also, the PMI is a heavy influence that can sway a country’s GDP, so by tracking it regularly, you can come up with a forecast for a country’s future GDP giving you the edge you need in trading.
The last one would be the Consumer Price Index or CPI this is a kind of report where traders can take hold of consumer related data. Some of the useful data a trader can treasure are those of; incomes, financial situations, and consumption demand which are usually obtained by conducted surveys.
Trader Tip: the CPI is a very useful tool to determine a country’s current situation. Most of the time, if the results from the CPI reveals a better consumer spending, it means that the country’s economy is on the verge of rising. The CPI inflation rate means the CPI is below the goal of a monetary policy, which leads equities to rally, but seldom can be dependent on the communication coming from the country’s central bank.
Remember the Economic Calendar
Use the economic calendar is a daily basis, as a trader, it is your solemn duty to rely on the events that mark a big significant in the market. The economic calendar is simply fair and easy to understand, always consult and look for it before negotiating any deals and future trades to minimize any margins of errors and loss.
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