Last update 2121.01.18
If you have had to access our content on the Wiseinvest trading Academy, you certainly remember how many times we emphasize the importance of education and information in Forex trading. In this article, we will share with you the essential news releases to trade forex, which you must consider when engaged in trading.
🎯 We expect to help you invest in forex efficiently and improve your results. Get extra forex trading insights from leading finance experts on the trading Academy and on our free forex Telegram channel.
💹 When trading forex, we suggest you consider long term results.
What you will learn ahead 🎓
- The importance of economic news and fundamental analysis in trading
- What are the most relevant economic events for forex trading
- How to take advantage of trading with fundamental analysis
- The use of AI trading, the most efficient way to trade forex.
It turns out that geopolitical factors do continue to have a bearing on global markets, and, as such, it is worth being aware of the potential impact of the foreign policies of various countries.
Commodities markets 🛢 are especially sensitive to geopolitical changes, with the likes of oil and gas being hugely responsive to threats of military conflict in particular regions of the world. And political risk can often be a significant factor when deciding whether to invest in frontier and emerging markets. In such instances, portfolio diversification becomes especially crucial for the investor to ensure that the risk emanating from one market is limited and does not decrease overall return.
Think for example about a large number of relevant events in 2020. We have Covid-19 😷, plus threats of wars with North Korea or Iran, an anti-capitalist getting elected in the US, cyber attacks, earthquakes, and so on. How does it affect forex trading? Has been this news so important for forex? How can I take advantage of that to improve my trading performance?
The importance of economic events for forex 📰
One effective way to improve your forex trading performance is to utilize the impact of economic reports and studies when you are trading.
This type of approach is a form of sentiment analysis and we will try to help you find out how to best utilize these trading tools, as part of your strategy.
There is no rule-of-thumb to determine the most important source of information in forex markets, but a good place to start is to “follow the money.”
From among the major currency pairs in the forex markets worldwide, it is clear that the most significant one is the USD 💵. For over thirty years, the USD has represented more than 80% of the total forex market volume.
Here below we present two pictures of the forex market, one snapshot from 1989, and the other from 2019 (source BIS).
Forex market in 1989 compared to 2020
We can see that from 1989 to 2020, there was an important increase in the number of currencies being traded in the forex market. This progression is a clear signal of maturity for the forex market. Helping its evolution was the more stable world economies over the last thirty years.
Since all the major and minor currencies represent significant volumes in forex, so too are their economies’ important sources of information relevant to know what is happening in the respective currency pairs. Below we will discuss where you can find the main sources of information relevant for each currency pair.
Relevant economic news releases for forex
- Interest rate decisions: we already talked about the importance of interest rate decisions in forex. Serious forex traders must monitor the US, Europe, and major Asian economies when their central banks release news announcements of their intentions and commentary about monetary policy. Whether they hint at keeping or changing their interest rates, or taking other measures that can immediately impact financial markets.
- Inflation (consumer price or producer price), Trade Balance, Unemployment, Industrial Production, and Retail sales: those real economy variables are also very important and are the subject of many online reports such as forex economic calendar items.
- Business sentiment surveys, Consumer confidence surveys, and Manufacturing sector surveys: Private sector influencers are frequently surveyed about their views about the economic future of their business or industry. That poll information is systematized and published. It represents a very good source of information for the governmental public data and communications which frequently try to avoid unexpected results. When the results are in line with the forecast markets do not get surprised. Whereas, when the results are different than what was expected, the markets can overreact.
Education and the right source of economic and market information is what Wiseinvest Academy provides to you. You can significantly improve your profitability potential by signing up for our premium content and AI trading solutions.
It’s easy to write about making money but it is hard to actually make profits! That is why we carefully prepare our content to educate and inform our subscribers. There is no magic way to increase your trading profits, it takes time and resilience.
Most of the trading gurus on the internet are bragging about 500% or more returns in a short period of time, but none of those is long-lasting, and often hide their real losses in their misguided operations.
The use of Artificial Intelligence can help prevent you from experiencing huge losses, unfortunately, it must also limit the gain. This is because risk and reward are proportional to each other. However, you can capture a steady and more safe increase of your principal, if you put in the time and are successful trading. It doesn’t matter if you can make a 1500% gain on $ 50.00 if soon you realize a 100% loss of $800.00, that is why you must avoid any miracle promises of enrichment when it comes to forex trading.
Choose wisely and look for proper education and information that is transparent about the risk of potential high return investments.
The relation of economic news and spreads in trading 📊
When trading forex, there may be instances when spreads widen beyond the typical spread. These spreads are a function of market liquidity and in periods of limited liquidity, at market open, or during rollover at 5:00 PM ET, spreads may widen in response to uncertainty in the direction of prices or an uptick in market volatility, or lack of market liquidity. It is not uncommon to see spreads widen particularly around rollover. Trade rollover is typically a very quiet period in the market, since the business day in New York has just ended, and there are still a few hours before the new business day begins in Tokyo.
Being cognizant of these patterns and considering them while trading with open orders or placing new trades around these times can improve your trading experience. This may occur during news events and spreads may widen substantially to compensate for the tremendous amount of volatility in the market. The widened spreads may only last a few seconds or as long as a few minutes.
Just as an example, during the rollover time spreads that are usually 2 pips, can reach up to 40 pips. It is an example of how dangerous might be trading without knowledge and the right tools. With an automated AI trading system, you do not need to concern about spreads and monitoring economic news.
It is important you utilize caution when trading forex around news events and always be aware of their account equity, usable margin, and market exposure. Widened spreads can adversely affect all positions in an account including hedged positions.
The best way to trade forex
There are two ways to invest with our AI in forex without concern about economic news.
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Automated AI trading benefits
- Setup in 3 minutes.
- Totally hands-off, from anywhere.
- Invest from just $100.
- APY of 40% over the past 13 years*.
- Lightning-fast execution & no slippage.
- No commissions, no management fees.
- Portfolio with 40 different automatic strategies.
- No MT4/MT5 or other platforms required.
- Test with a risk-free practice account.
- Trading results directly on our dashboard.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker FXCM. Click here to open an account.
2. Manually with AI forex signals.
Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.
There are five unique variables for each AI signal, and each must be copied exactly, to match the performance of the signal as close as possible.
Each AI forex signal alert consists of the following five data points:
- Symbol (forex pair)
- Direction (long or short)
- Position size (number of units or lots)
- Take profit (price level to exit with maximum gain)
- Stop loss (price level to exit with maximum loss)
Check out how to trade with our AI forex signals.
- Subscribe to a Wise-Plan.
- Open a Brokerage account. Check this article about the best forex Brokers.
- Set an amount and a position size on our Wiseinvest dashboard.
- Our AI will send you real-time trading alerts by email and Telegram.
- Copy the signals and paste them into your Brokerage account.
All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.
Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.
You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading by clicking here.
What is the AI performance in forex trading?
The Win Rate of our AI moves as shown by the period and can reach up to 95%. The introduction relies upon the capable wild estimation metric, which infers that our model is valuable at whatever point the Win Rate is more noticeable than 60%. All methods of our AI trading system search for stable returns and sufficient results to achieve an ordinary return of 40% consistently (APY), without the usage of high impacts.
We appreciate that what is significant in forex trading is the definitive result. Thusly, the money related master needs to consider that Win Rate isn’t commonly the best estimation to measure execution in forex, as other signal providers uncover. For instance, out of 100 trades, solitary 1 trade may be an adequate disaster to make the 99 trades not gainful. For this circumstance, the Win Rate would be 99%, yet the convincing result would be unfeasible (negative).
We revolve around the appearance of 40% of APY and not just on Win Rate.
It is essential to see that forex brokers may charge spreads, commissions, and overnight costs in your trading account, and these components can impact the AI execution. You can check our forex trading history to see more about AI trading execution by clicking here.
How much do I need to trade forex with AI?
You can start in forex trading with free AI forex signals or AI trading record and make a store from just $100 in the broker. It is moreover possible to test using a danger-free practice account with our AI trading structure. Regardless, to do a capable peril, the board in authentic records, we suggest you start from at least $100. Notice that some forex traders require assorted beginning stores to trade forex.
What is the trading strategy of our AI?
Our AI methodology is the blend of different AI trading structures, with more than 100 features, that portray 40 particular procedures which simultaneously consider: Quotes of the 28 forex pairs, Supports, and Resistances in different timeframes, Trends and Counter-designs, Cross-markers, Index of each pair, Economic Calendar, Investors Sentiment.
Our AI looks at those fundamental, technical, and sentiment factors that impact forex trading, and all models are surveyed constantly using different burdens. In the wake of completing the examination, the choice of the signal transmission procedure is made considering the improved likelihood of flashing advantage and the total open for theory.
Using technical analysis, our count considers not simply the instances of various examples, including sponsorship and deterrent levels and cross-pointers, yet our AI is moreover prepared to make its own progressing record for each cash pair, that is used to recognize what is the best course and target.
Practically identical to fundamental analysis in forex, the AI makes an association inside the budgetary calendar to find news data that can impact express money sets.
Learning Finance Is Critical to succeed in forex trading
Having financial skills can bring success in your professional and personal life. We always recommend learning more about finance and trading. This is why we founded the free Trading Academy. It is also important to keep up to date on the most important economic news from serious sources of financial information. Our automated AI trading system can analyze economic news from Bloomberg, Forbes, and the New York Times in real-time, to evaluate the impact of forex trading.
- If you have any doubt as to where to find information for your trade analyses, start from where the money is. It means to follow the major currencies.
- The USD is the most traded major currency in the forex for the last few decades when currency rates first began to float.
- Following the sources of information announcements directly from central banks and government, data releases can help put you ahead of the crowd, when it comes to trading outlooks.
- Using trading tools such as an economic calendar, or AI-powered trading signals such as Wise Signals can help give you an edge.
- Continue to read the Wise Blog, so you don’t need to spend your time following dozens of economic sources, you can read the best content here.
To have a profitable strategy you must follow the money! Our Artificial Intelligence learned to do it. Subscribe today and give AI-Trading a test-drive in your brokerage account.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.