How long the economic data can be used?
According to a study conducted by Martin DD Evans and Richard K. Lyons published in “Journal of International Money and
Finance” in 2004, the market for economic data to act out sometimes for hours, sometimes many days after their publication.The
study showed that the effect of data on rates of return reflects the market is usually the first or second day, but sometimes it
is visible even to the fourth day.Usually, however, most spontaneous reactions in the market are visible immediately after the
publication of data.
On which currencies should therefore focus your attention?
Eight major currencies this, which should be your area of interest are:
1. U.S. Dollar (USD)
2. euro (EUR)
3. British pound (GBP)
4. Japanese yen (JPY)
5. Swiss Franc (CHF)
6. Canadian Dollar (CAD)
7. Australian Dollar (AUD)
8. New Zealand Dollar (NZD)
The most liquid currency pairs, which most investors turn are:
1. EUR / USD
2. USD / JPY
3.AUD / USD
4. GBP / JPY
5. EUR / CHF
6. CHF / JPY
As you can see these currencies span the globe, many different time zones and economies. And it gives you a chance to choose
the specific currencies and economic information, which we want to look at in particular. However, since the vast majority of
currencies is rotated in tandem with the dollar, tracking the news from the U.S. is essential, because they have the greatest impact
on the market(detailed information about the U.S. economic data were included in the article: U.S. dollar – the basic currency of the
investment).
Trading on the basis of economic data is a very good method, but this is not a simple matter. Importance because they not only
official information given to the public, but also even unofficial information on earnings per share (EPS), and all kinds of searches.
You should also know that the information is more important than others. This may depend both on what country is the author of the
information, as well as the degree of validity of information in relation to other data, released at the same time.
Investments based on economic data
One of the biggest advantages of currency trading is that forex is open 24 hours a day. This allows you to customize the style of
investing to signals from the market and use them to achieve their goals. Great price volatility rates allows for short-term investment
and rapid profits.
Economic data are regarded as the main catalyst for any short-term movements in all markets. This factor is particularly important
for the currency market, since it reacts not only on the data coming from America, but the news from around the world. At least
eight major currencies available from any broker, and some times with a multitude of different currencies are available and their
combination, always for the use of the investor is more economic information, which he can use to make specific decisions.
Usually every day, no less than seven economic information is released from the eight major currencies of countries that most
investors follow very closely. So if somebody wants to build its strategy based on economic data, has a lot to choose from. In this
article I would like to clarify when the data show the economic information that are most useful for investors in the forex and how to
use data when making investment decisions.
20. The betting on gamble
From putting a high risk of no benefit. If you set to close a position, say at a profit of 20 points on 60 points, then your chances are 3-
1 defeat. Commands must be realistic and reasonable. Are you interested in gambling? Play on the slot machines …
19. Too quick surrender
The first investment in general, or the first investment of the day, it may not be the best, but this does not mean that you should let it
go. Rome wasn’t built in one day.
18. What too much is enough
If you invest based on the indicators, do not try to base its decision on all the possible indicators. Do not get in the way of
information reliably and applications can be very misleading (more on indicators of investment you will learn from the article: 4 types
of indicators that every investor must know …).
17. The lack of rational thinking
A very important thing. Purchase of currency and let the investment has taken place according to the established at the beginning
of the road. If you work to stop loss, the investment is over. Moving down command makes no sense. The investment can go even
worse. Do not ignore the obvious situation where there was a closing position, it means that taken the wrong decision. Accept it with
class and come back the next day to the play. A small loss will not hurt you, emotionally, trying to save the investment, you could
lose too much (more on reducing the risks when investing you will learn from the article: Investments based on the mini flights recipe
for success).
16. The prolonged investment
Sitting all day and looking for a good time or investing in power, for example, to make up for losses is not a good strategy. Take no
more than 3 hours a day. Focus up and use this time as best you can. It is the time interval at which your brain is able to operate at
full capacity. Remember to be 100% focused on what you are doing. Only in this way you can succeed.
15. The lack of consistency
When you earn money on a well thought-out investment, not a retreat. Invest earned money on yet another well thought-out
investment. In this way, you build confidence and become better every time investor.
14. The incorrect interpretation of market information
Not derive information from newspapers because journalists do not necessarily know their stuff. Learn to read the original reports
and documents and try to draw their own conclusions.