At present, an estimated $5.1 trillion is traded through the forex market every single day. Even though this has fallen incrementally since its peak in 2013, it distinguishes an incredibly lucrative and popular marketplace for traders of all descriptions.
The volatile and liquid nature of the market poses a unique set of challenges for investors, however, making it difficult for them to identify the wealth of opportunities that can present themselves during each 24-hour period.
In this post, we will discuss three ways in which investors can keep up-to-date with these and optimise their daily trading:
- Utilise real-time news rooms
Whether you decide to day trade (which requires you to open and close multiple positions during a 24-hour period) or adopt a longer-term outlook, you need to time your efforts in line with the prevailing macroeconomic climate. This means monitoring real-time news and trends, before using knowledge and a keen sense of determinism to decide how to organise your trades. Fortunately, contemporary trading platforms offer live newsrooms that are accessible 24-hours a day, while they also provide analytical tools that helps to make sense of individual reports.
- Keep an economic calendar to hand
In addition to this, you should also make sure that you keep an economic calendar to hand at all times when trading. Independent learning resources such as Sharp Trader feature a detailed economic calendar that lists relevant events from all over the world, including key data releases, international summits and the scheduled meetings of major banks and monetary policy-makers. This will highlight potential opportunities ahead of time, which could be particularly important for those with a long-term trading strategy.
- Choose your Trading Period wisely
The forex market is open for 24-hours, six days a week, while all activity is stretched across three distinct trading sessions. You therefore need to select your trading period and time your orders carefully, so that you can manage your strategy and ensure that you are aware of every conceivable opportunity. So, create a schedule that enables you to access the market and monitor price movements in real-time, and time your trades to capitalise on trends and developments as they unfold.
By following these small but significant steps, you can tailor your trading strategy and make the most of the opportunities that present themselves each day. This is true regardless of your outlook as an investor, as leveraging opportunity and real-time trends is central to success in the forex market.