I just started reading the economic calendar every day but still, I am not able to understand how to take decisions! whether to buy or sell. What kind of news will help us to enter trade?
I wouldnât recommend you to take trades based on the economic calendar only. It shouldnât be more than an extra confluence within your trading plan.
But I donât know how to take a trade based on the calendar thatâs why! I donât understand, actually, I am confused after reading the calendar, whether to buy or sellâŚ!!
It takes practice. Focus on high-impact news, consider market expectations, analyze the context,
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i would be, too
i think many of us who have been trading successfully for many years would also be confused if we tried to use the calendar to decide that
i respectfully suggest that what underlies your confusion is the (perhaps mistaken) premise from which youâre starting - namely that the purpose of the economic calendar is to tell you whether or not to buy or sell
many of us start from a completely different premise from yours: we look at the economic calendar (very briefly, in many cases!) for the primary purpose of deciding whether or not itâs a safe time to have a trade open at all
thatâs all many of us use it for - itâs a way of âavoiding red newsâ because those are the times not to have a position open
itâs a completely different perspective from yours, i think
iâm not saying âthis is right and your perspective is wrongâ: if you can find a way to use it to determine whether to buy or sell, that would be commendable, helpful and beneficial, of course - i just donât think youâll manage it; i know i canât; i know many other people canât; i know thatâs not its primary use
in my opinion (it may not be a universal opinion but i think itâs a widespread one among successful traders!) a big shift in perspective is likely to help you, here: determine whether you want to open a long or short position by other means, maybe technical analysis (i.e. maybe price action and/or maybe indicators and/or maybe a mixture of the two, whatever works for you) and then just use the calendar to check whether or not itâs a safe time to trade at all 
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Hi,
Start with a simple explanation of how to trade the news. This link will give you a good start. There are many trading the news strategies out there. I went to a seminar in London over a decade ago, and spent 2 days listening to a guy who had traded the news as one strategy from many for two decades and had his trading records to show it - some on the old chart printouts before computers LOL
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How to interpret based on economic calendar is challenging , but you can improve your skill with practice and experience on that.
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maybe sanjfer can ⌠i never could, myself 
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Advice
Dont trade half an hour before or after the news release. So if release is at 13:30, dont trade between 13:00 and 14:00
News just brings in volatility; and you probably going to take Big hits if you trade during news releases.
Normally institutions already know the data before hand, so the fundamental effect of news is normally âpriced inâ. Thatâs why most news have the Forecast column, and most of the times, the data is quite accurate.
The only news that normally but not always can start a new strong trend, are interest rates adjustments by central Banks. If interest rates are increased, normally the affected currency has a bullish Bias and viceversa. When this happens, you may find a nice trend to Hop on, Little after the release.
The rest of news and economic data, doesnât Make much sense normally, It just brings volatility as I said before.
News not in the calendar can Also give you a Bias for certain currencies, economic crisis and crude oil/energy crisis normally affect currencies in a particular way.
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check forexfactory, its a news outlet and it helps you to decide, tells you what to expect, of course its not 100% accurate
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Well, aint news trading a valid trading strategy? I mean, some people only open trade before news and still win big, dont you agree?
As I said before⌠Nope!
Traders do not trade news releases.
Gamblers Who want to try and Make a quick buck do. You want to gamble⌠give it a try. You Will learn whatâs slippage⌠stops not filled⌠double sided runs⌠and all kind of nasty things. Give it a try.
Trading is not about quick money, itâs about long term consistent, slow and steady profits.
You want to Make money fast⌠honestly⌠find another job. Honest opinion here.
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- Know Key Indicators: Understand major economic indicators like GDP, interest rates, employment data, etc., and how they impact markets.
- Analyze Forecasts and Actual Figures: Compare actual data with forecasts. Better-than-expected figures usually strengthen the associated currency, worse figures may weaken it.
- Study Impact Levels: Pay attention to âhigh impactâ news, which can cause significant market volatility.
- Risk Management: Use stop-loss orders and other risk management techniques to protect against market swings during news releases.
- Practice: Gain experience by trading in a simulated environment, learning from the impact of various news events on your strategies.
Economic indicators provide information to help make informed decisions, not guarantees of future performance. Keep practicing and refining your trading strategies.
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Believe it or not, I have seen a lot of successful traders who trade news and win big time.
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I think study historical data , and focusing on key indicators and also getting acquainted with these economic calendars help traders in interpreting.
Only whatâs relevant to the right now - what is it that the market is preoccupied with this very moment.
Sometimes it is US budget negotiations between the 2 political parties (look to TV news) , other times talk of imminent recession ( look at consumer spending) maybe risk on/off (look to corporate earnings or geo political news)
The right now is inflation - itâs been on the rise big time but like all trends it must come to a stop sometime. The market is anticipating that for the US that time is now - is it right - if so then the Fed will slow/stop their programme of rate rising.
As for risk - many corp earnings incoming week - can affect Usd/Jpy
TA has fixed rules so to speak, FA is more fluid, focussing on whatâs likely to happen up ahead.
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