Tool Box cont.. Economic Releases & Other Resources

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Economic Releases

Being aware of economic releases within the world economic calendar is generally fundamental analysis, but technicians use this data too.  For instance if The UK Consumer Price Index (CPI) is to be released at 08:30 GMT this may affect a GBP Forex cross-currency trade.  How? If CPI is larger than expected it may lead The Central Bank to raise interest rates in the future.  This "threat" increases GBP valuations against other currencies. Other releases like unemployment, consumer confidence, trade data etc... will also affect central bank policy, so it's important to have the calendar at hand while you have open trades.

You also need to be aware of Company Statements and Releases.  These can affect your held positions too.  Think of a scenario where your holding 100 shares in a blue chip company trading on the German Dax and suddenly there's a profit's warning.  Your stock could plummet.  Stay tuned to Company release calendars too.

https://www.forexfactory.com has a good world economic calendar with detail of how releases will affect trading. In fact there are a few web sites that will supply this info, eg. Dailyfx.com also has up to date information. We'll explore more on Trading The News in a later module.

Other Resources

There are plenty of other resources out there that are used by day traders to long-term investors alike. Below we'll look at some of them.  

Television and radio play a large part in a day traders life, specifically financial news channels like CNBC and Bloomberg.  These channels are available in most countries and online (CNBC is subscription based and Bloomberg is free at this time).  They are fabulous at breaking news that may affect trades and for gathering trading tips.  You can usually be sure that the experts they have dissecting the markets trade as a living, but remember it's only their opinion and confirmation is always needed.

The web is awash with Forex, Options, Commodity and Stock Market web sites, blogs and forums.  Use these to gather info on potential trades that suit your strategy, to bounce ideas off of other like minded people and to educate yourself on new techniques and strategies.  Always get confirmation on all info that you gather from web sites, as you don't know how experienced the supplier is.  The more established sites like FT.com, Fool.com and Yahoo business to name a few will be more professional than a blog, but don't discount bloggers.  

Stock Analysis sites are also important to understand a bit about the market you are about to jump in to.  Although they hold mainly fundamental data, both Google and Yahoo along with YCharts will supply charts, quotes, sector performance and statistics like earning per share and dividends.  This is great for comparing stocks with a sector, or making sure your stock pick is in line with the broader market.  They're also awash with up to date market news that may affect your trading day.  The last thing you want is to be stuck in a trade when there's a profits warning announced.


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Previous...


Economic Releases

Being aware of economic releases within the world economic calendar is generally fundamental analysis, but technicians use this data too.  For instance if The UK Consumer Price Index (CPI) is to be released at 08:30 GMT this may affect a GBP Forex cross-currency trade.  How? If CPI is larger than expected it may lead The Central Bank to raise interest rates in the future.  This "threat" increases GBP valuations against other currencies. Other releases like unemployment, consumer confidence, trade data etc... will also affect central bank policy, so it's important to have the calendar at hand while you have open trades.

You also need to be aware of Company Statements and Releases.  These can affect your held positions too.  Think of a scenario where your holding 100 shares in a blue chip company trading on the German Dax and suddenly there's a profit's warning.  Your stock could plummet.  Stay tuned to Company release calendars too.

http://www.forexfactory.com has a good world economic calendar with detail of how releases will affect trading. In fact there are a few web sites that will supply this info, eg. Dailyfx.com also has up to date information. We'll explore more on Trading The News in a later module.

Other Resources

There are plenty of other resources out there that are used by day traders to long-term investors alike. Below we'll look at some of them.  

Television and radio play a large part in a day traders life, specifically financial news channels like CNBC and Bloomberg.  These channels are available in most countries and online (CNBC is subscription based and Bloomberg is free at this time).  They are fabulous at breaking news that may affect trades and for gathering trading tips.  You can usually be sure that the experts they have dissecting the markets trade as a living, but remember it's only their opinion and confirmation is always needed.

The web is awash with Forex, Options, Commodity and Stock Market web sites, blogs and forums.  Use these to gather info on potential trades that suit your strategy, to bounce ideas off of other like minded people and to educate yourself on new techniques and strategies.  Always get confirmation on all info that you gather from web sites, as you don't know how experienced the supplier is.  The more established sites like FT.com, Fool.com and Yahoo business to name a few will be more professional than a blog, but don't discount bloggers.  

Stock Analysis sites are also important to understand a bit about the market you are about to jump in to.  Although they hold mainly fundamental data, both Google and Yahoo along with YCharts will supply charts, quotes, sector performance and statistics like earning per share and dividends.  This is great for comparing stocks with a sector, or making sure your stock pick is in line with the broader market.  They're also awash with up to date market news that may affect your trading day.  The last thing you want is to be stuck in a trade when there's a profits warning announced.


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