One tool, key to a success when trading Forex is the economic calendar. By using the calendar a trader will get a better understanding why the market is moving in a certain way, while at the same time, he/she will be able to anticipate these moves. As a whole, the biggest market-moving events tend to be the release of key economic data such as the GDP, US non-farm payroll number. While not all of the reactions of the market to these announcements can be predicted, however they do present excellent trading opportunities.
Experienced traders examine future economic events on a daily basis in an attempt to predict the movement of a particular currency pair. They usually stay way ahead of the announcements of crucial events and get into action in a respective way, so that by the time a certain announcement is made, they will have already estimated the value of the currency pair they are interested in. A simple, but effective way for traders to keep track of information from events, news or statements is to have an economic calendar at their disposal. By using such a vital trading tool, traders are able to follow key economic and non-economic indicators, which may provide clues of the direction of the market and also be aware of all the events, expected to influence the movement of a particular currency.