Although FOREX dealers in general aware of the importance of daily economic calendar, to be profitable, must they go further, and the difference between surprise and expected.
To capture these concepts, you need to know that this attempt a game between the tax authorities and the community of analysts to predict the numbers.
While natural disasters, accidents and political movements can be expected, and therefore they are always considered news surprise, the economic calendar from the investment community is known.
In an environment with highly speculative investments such as the FOREX market is creator main volatility the economic calendar.
Indicators such as GDP (gross domestic product), CPI (consumer price index), PPI (producer price index), unemployment rate, interest rate, retail sales and trade balance are largely followed and evaluated.
Before each report estimates are published and traders try itself after which you want to position the numbers be.
These estimates are the sound and hit the market before the publication of each report set.
Here is a rule that you have to integrate, the market in your trade discounts each piece of information. Simply put, the price is the result of all that is known and expected from the investment community.
Although the report is a good economic results on whether this expected by the estimates, doesn't move the market much as it early on already discounted this information in the process.
However, comes the economic announcement not in line with the expectations, then have we the so-called surprise reports. The investment community quickly digest and adaptation to the new expectations and it tries it drives the market towards the surprise news.
Professional FOREX operators avoid, that open positions before the most important economic reports. You both, the expected as the surprise scenarios to prepare trade plans and which thus limit their risk exposure is published, Act.
Always remember, you think that the market will move only surprise messages. Even if the report shows a strong economic sector, if the actual figures in line with the expectations of analysts, moves the market has already absorbed and booking facility on the numbers, that is why it much is not.
Bogdan Vasile
Mr VASILE is the founder and President of vertebra capital management, an experienced FOREX trader, Member of the securities & investment Institute in London and author of the revolutionary SyncronDec? training program used in his professional FOREX course. He is dedicated to the owner of http://www.forex-arena.com, a professional website, FOREX analysis, and education.
This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.
No comments:
Post a Comment