Saturday, 1 March 2008

Further Tips on Making the Best Use of Economic Data


In the last post we looked at some hints for making sets of economic data work for you in Forex trading. Here are one or two further things to remember:


  • Concentrate on the finer points of the data, rather than the headline figure of each set of data. For example, the PPI (Producer Price Index) measures changers in producer prices of different commodities. However, experienced traders will know not to pay so much attention to the food and energy components of the data set. This is because they are aware that these components are so volatile that they do not provide an accurate picture of economic conditions.

  • Remember that economic indicators usually contain revisions to previous data sets. So although we said in the previous post that the importance of figures lies in the extent to which they fall outside market expectations, be aware that an unexpected rise could be the result of a downward revision to the previous month. So look at revions to older data before you use this as a basis for making a trade.

  • Never forget that there are two sides to a trade in Forex trading. You always trade one currency against another. Therefore you must pay attention to the economic data from both of the countries whose currencies you are trading. Remember that not all countries are as efficient as the USA or Europe in releasing their economic information so you have to be careful about judging how much weight in the market the data from each country will carry. Always do your homework.

If this all seems difficult and complicated, don't forget Easy-Forex will give you plenty of help if you are trading with them, and you can also get help on many aspects of Forex trading at http://www.bizwrite.co.uk/Forex/forexindex.html


14 comments:

Anonymous said...

Very informative. Where does the investor place his stop and limit orders respectively, determines the amount of risk he is taking up. It is advisable not to place your stop/loss orders too close to the normal market price, as a little fluctuation in the market, can then trigger the order. Likewise, limit orders should also reflect a rational hope of profits you are expecting, based on the market's trading activity. They should be set at the rate which is not overexposed to the trade, and also not too close to the market.
'Stop-loss' and 'limit' orders can lower an investor's exposure to risk by a large proportion.
MyInvestorsPlace - trading, value,investing, forex, stock, market, technical, analysis, systems

Anonymous said...

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Betty

http://www.my-foreclosures.info

imyatrader said...

I always do trading based on technical analysis.
Your blog gives me different perspectives for my trading style.
Waiting for newer posts.
imyatrader | trading journal

Unknown said...

Hi
Thank you very much for a great blog!
I am a blogger too and I have tried several affiliate programs to make some money from blogging, such as Forex Yard, E-toro, and Earn Forex.

By far the best program I came across so far is a Cashback program where you get a discount on all your trades. I use it myself and last month I got $270 in cashback from trading two Alpari Uk accounts with a deposit of about $5000 in total. Spreads remain the same so it is essentially “free money” if you are already trading.

This is the best thing: for every person you recruit to this program you receive 10% of their cashback discount on their trading forever! Two months ago I got $700 from people that has joined the program through me and last month I got $900, and this is just from about 30-50 accounts.

For more information check:

http://tinyurl.com/forexcashback


Maybe this could be something for you to promote on the blog or even write about in your next newsletter to your subscribers.


Many of the well known brokers are connected to the program such as:

Alpari UK
Alpari US
Avafx
Dukascopy
Etoro
FXCBS
FXCM
FXDD
Fxopen
GallantFX
Liteforex
Marketiva
PFG
Tadawul FX



Good luck!

Best Regards,

Mike

Alternative Loans said...

"FOREX" is also known as "foreign exchange trading" or "currency trading". By buying and selling currency actively, you can make tons of money fast.

However, the most important thing is to find out which FOREX Guide programs you should spend time with, and which ones to avoid. On this page we have reviewed the Top 5 FOREX Guide Programs that are proven to work.

Unknown said...

good site , compliments, if want news about forex forex finance

Unknown said...

In order to learn to trade of forex you must have the appropriate knowledge Information to help educate yourself on strategies, analysis, how to choose among the many forex trading brokers and we even offer a free course!

Unknown said...

With currency trading becoming ever more popular, the number of brokers is growing at a rapid rate. What should one look at when deciding which broker to open an account with? These are the important points to consider.[Read More]

Unknown said...

Most investors who trade forex stocks use a broker. A broker is an individual or a company, who buys and sells stocks according to the investor's wishes. Brokers earn money by collecting commissions or fees for their services

Unknown said...

Investors and traders can trade currencies worldwide, in any trading zone, 24 hours a day, in today's foreign exchange market. London, Japan and New York top the top three currency traders among the currency dealers. These currencies are being traded 24 hours a day

Unknown said...

Hi there, I'm just wondering if u heard about Forex striker which I`m currently using right now, the first ever U.S.A. patented that destroys brokers and makes cash everyday. Pls visit my FOREX STRIKER REVIEW and discover how i earned almost $18,000 in less than a month.

J D C said...

Thanks for giving us this useful information. I have come some advice to about forex trading nationwide. Do YOU believe that it is POSSIBLE to DOUBLE a small forex system 8 times in less than 10 years? Absolutely! It is possible, but only with a great deal of luck.
Thanks for sharing.....

www.invesindo.com said...

Thanks,

I like this site .. if you need the forum for learning and discussed about forex. please coming to Forum

Blogger said...

I would recommend that you stick with the #1 Forex broker.