Last update 2020.08.06
If you have had access our content on the Wiseinvest portal, you certainly remember how many times we emphasize the importance of education and information in Forex trading.
Regardless of whether you trade for fundamental or technical reasons, information and knowing how to act upon news is important when it comes to investing in forex.
One effective way to improve your forex trading performance is to utilize the impact of the 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 significanct one is the USD. For over thirty years, the USD has represented more than 80% of total forex market volume.
Here below we present two pictures of forex market, one snapshot from 1989, and the other from 2019 (source BIS).
Forex market in 1989 compared to 2019
We can see that from 1989 to 2019, 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 it’s 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 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 internet are bragging about 500% or more returns in a short period of time, but there none of those are long lasting, and often hide their real loses 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% of 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 traidng.
Choose wisely and look for proper education and information is transparent about the risk of potential high return investments.
- If you have any doubt as to where find information for your trade analyses, start from where the money is. It means follow the major currencies.
- The USD is the most traded major currency in 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.
The best way to trade forex
There are two ways to invest with our AI in forex:
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker Oanda. Click here to open an account.
2. Manually with AI-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, in order to match the performance of the signal as close as possible.
Each AI 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)
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.
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. The forex broker Fxcm warns that 69.66% 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.