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Forex Factory The Website Tool You Should Know!
I use this website to reduce my losing trades which by default increases my returns!
Read on to see how you can do the same.
Forex factory’s useful free tool that I use is the economic calendar.
This is a calendar with a difference.
Every day, economic data is released. Central bank meetings and events that may impact the financial markets are released from different countries.
A coloured icon is next to the data, along with the currency it may impact and the time of release.
Red for high impact, amber for medium and yellow for low impact.
Forex factory have made it really simple to navigate. Plus there is historical data from previous data releases. This is good to gauge trends, such as in unemployment for example.
You can navigate to the economic calendar like below.
In the below screen shot you can see that at 2pm (US time) there was an FOMC meeting.
Forex factory have simple format to see what Forex pair it may affect. The possible impact with coloured icon and the data description. You can also see the data figures from previous releases.
on the 21st Sept. Any USD currency pairs will very likely be affected by increased volatility. That’s why on their calendar they colour codes the icon.
You will see later in the post the chart of AUDUSD and the affect this data release had on the Forex pair.
Traders need to be mindful of which currency pairs they are trading.
If high impact data is due for release this can increase volatility in the markets. (large outsized moves)
It is for this reason it’s better not to enter any new trades around the time of release.
This would increase your risk of getting stopped out and this is prudent risk management.
Or potentially you may be in a trade and it is near your stop loss or take profit. It may be wise to cut the position ahead of the data release.
Forex factory are relatively quick in releasing data. However, trading Forex during the news release is better left to the professionals.
Unlike Forex factory they have access to the live data and they receive it upon immediate release.
Retail traders (that’s us) get the data slightly delayed from the website to those that pay for the news and data stream.
For this reason it is a high risk approach to trade the news and not worth the risk. We are already trying to realize the statistical edge in trading. We don’t need more losses than we already have in our winning strategy!
Forex factory’s economic calendar is an essential tool for any serious forex trader.
Those that do not pay attention to the data will end up with more losses than necessary. As we know trading losses cannot be avoided. But they can certainly be made infrequent with proper risk management.
The way I approach trading is I check the economic calendar for the week ahead and every morning and set an alarm for 30 mins before.
That way I’m well prepared to not enter any new positions. You can check my performance from the live trade alerts shared in the trading room every week here
You can see what happened to AUDUSD when the FOMC meeting occurred. This was made clear on their economic calendar release. Volatility increased and whipsawed violently up and down. I’m based in the UK so there is a time difference. That is something that you must check. Although I’m sure Forex factory can be set to your local time.
When it comes to Forex trading our job is to limit the losses and maximise the winners.
Forex factory and their economic calendar really helps me navigate the market and limit losses.
It may seem overwhelming, however, it needs to be part of your routine and process.
At Able Trading every morning I share my morning note in my trading room. This contains the economic data releases for that day.
The forex pair that may be affected with the description and the time of release is included. I also put the link to their website.
Anything we can do as traders to limit the losses we should do. Lazy traders will never make it long term.
This I found out the hard way!
Forex factory’s calendar is always updated and can be see ahead of time.
This allows you to prepare for the week ahead. It can aid you with your watchlists. Which Forex pairs to avoid.
Some weeks are very data heavy. Others not so much so you can trade more freely.
Summary: Forex factory offers a great free tool that should be used by Forex traders to manage their risk.
It’s helped me remain consistently profitable by keeping me out of highly volatile periods and reducing my losses.
When I was learning to trade Forex I did everything I wasn’t supposed to. I didn’t listen tot he right people. Thought I knew best. It took me years to establish a consistent profitability.
Forex Factory Video
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It is much harder to succeed now as a Forex trader.
For the simple reason that there is so much invalid information and education out there. You Tube and social media are dominated by fake forex traders. They define the reality of what successful trading is on social media. But that isn’t successful trading. They talk the talk but do not walk the walk.
This is a serious issue if you are learning to trade Forex.
I share my trades in real time at the time of the trade with entry, stop loss and take profit. That way you know my trading method works. I’ve done this for a few years and before that I released 12 months of my live trading account statements.
I did this to reassure anyone that wants to learn to trade Forex that you are with a trader who trades.
So many do not trade and not offer this kind of transparency for the simple reason is they can’t trade Forex.
If you want to become one of the Able and learn a simple 100% proven trading method then sign up here
Economic calendar visit here
Thanks for reading!
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