Whenever a forex trader enters the market, he or she should have a good reason for doing so, not to mention an advantage. Usually, that edge will be a technical aspect of price action. For many forex traders, these chart patterns are their bread and butter. However, savvy traders have also mastered the technique of extracting value from the news.
If you Google “forex calendar” you will find that several retail forex brokers make online news event calendars available to anyone who wants them. What’s more, they are free to use. Built into the “forex calendar” is information which you can routinely exploit. Every trader should make it a regular part of his or her arsenal.
Mr. Jordan Lindsey, the founder of JCL Capital, has declared that by eking out a 7 percent return from the market each month, any trader can become a millionaire. To accomplish that objective they will need to be able to find value wherever they can, and act on it often.
The “forex calendar” will define upcoming news events as either critical, not so significant, or inconsequential. Most of the time a flagging system is used. Red flag news events are the ones you should be anticipating. They are the ones most likely to cause price action to surge in one direction or the other. Forex traders are in a position to execute a plan to gold mine the news, and as Jordan Lindsey says execution is key to success.
When important news is released, the market reacts, and almost like clockwork within 15 to 20 minutes prices will retrace. In other words, prices rebound as if controlled by some gravitational force. The astute forex trader will enter the market to capture pips on the anticipated reversal. There will be times when these trades do not perform. However, this strategy represents an edge. Therefore it should be a part of every trader’s trading plan. The more often this advantage is executed, the more profitable you will become over time.
To achieve Jordan Lindsey’s stated goal of growing your account by 7 percent every month, traders must look for an edge wherever one exist and execute on it. Mr. Lindsey has admonished traders not to seek to get rich overnight. Instead, he advises that traders devise a plan that works and stick with it. Every dedicated forex trader should be combing the news calendar for their next significant opportunity.