Economic News Reports………….. ……………...Timing is Everything Other than being fodder for water-cooler chatter or intellectual debate, why is this news important to you, and why should you pay attention to it? It pays to be aware of the major news releases and dates (see report info below), because if youre ready when the news does hit the street, and there IS a trading opportunity that fits your plan and strategy...youll be poised to take advantage of it. Whats one of the major difficulties of trading? Timing! When a futures market will make an anticipated price move. Various trading indicators (RSI, MACD, Bollinger Bands, etc.) can give you some idea of a pending price move. But thats about all. But no futures trader knows WHEN a move will take place. With one possible exception. Economic news reports come out on an EXACT date and time schedule when they are released to the public. GOOD NEWS! Since you know when the CPI, Industrial Production or Retail Sales economic reports will come out, doesnt it make sense to plan to around at these exact times...and to be ready to take advantage of potential trade opportunities the news may present? This is another tool to put into your futures trading arsenal that can help you trade better...and at the least....in a more informed fashion. Want another reason to use this tool? How about because many other traders dont? It can help give you an extra trading edge. And what trader wouldnt want a little more edge or help when trading futures? If you are considering trading the financials (bonds, currencies, etc.) or the FOREX, be advised that the importance of several of these economic reports and the news they contain tends to be even more critical and important. Economy has to do with money, and these money markets are more sensitive to, and more easily moved by the data key economic news like interest rate changes and Federal Reserve announcements...sometimes in very major ways. You DEFINITELY dont want to be holding an open trading position(s) in the financial markets, and be asleep at the wheel when these major economic reports come out. As a large move occurring on big news (causing a price move against your position) can potentially make for a very short trading career. Bottom line - economic news and their respective economic reports can be another source of futures trading opportunities and profit for you...IF you take the time to learn about them, and potentially trading their news. But, there are no guarantees what will happen, which is why it pays to be aware of and prepared for this economic news, because the news they contain is time sensitive...and the potential trade opportunities they may present are short-lived. So, lets learn a bit more about some of the major economic reports.
Posted on: Sat, 17 Jan 2015 12:32:15 +0000
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