Page 85 - Ultimate Guide to Currency Trading

Keeping a Trading Calendar

Because the market is always reacting to the developments of news, and news is happening at all
times, it is best to keep a desktop calendar in which you can keep track of the dates and times of the
news and information that develops in regard to your frequently traded FX pairs. This way, you can
keep track of the developments that you know are scheduled to happen.

One type of information that you can use your trading calendar for is to keep you from
forgetting about an upcoming interest-rate announcement from a currency's central bank. You could
monitor the FX market and have your trading calendar remind you that the U.S. Federal Reserve,
(www.federalreserve.goo), will be making an announcement about a jobs report or other information
that is important to your open or future currency trades with a USD side.

This trading calendar can also keep track of the market sentiment of currency pairs as it
develops over time. If you regularly trade a pair that includes currencies that are in a state of flux and
moving up and down, then this calendar can help you to keep focused on the developments in the
market's commentary about the pairs you are trading.

You could use it to make note of your broker's recommendations as they develop over the
months and weeks leading up to a possible change in the economic numbers of that country. Your
calendar could serve as a record of the market chatter you are hearing about the stock markets of the
countries, their leading indicators, etc. Lastly, if you are already in the trade, or thinking of getting in
the trade, you can use the notebook as a form of a record of your own market sentiment.

While it is true that markets are always reacting to the news, it is also true that you as an FX
trader will also react to the news. This is especially true if you are in a trade. It is quite common to fall
in love with a pair, wait for the perfect time to enter the trade, and then have buyer's remorse after
your money is on the table. This is normal! While it is said that you should get out of a losing trade
before it becomes an investment, you can use your calendar to look over the developments of that
trade before you jump ship and possibly exit it too soon. The feeling of getting out of a trade minutes
after it moves the wrong way can be overpowering.

You should not be using emotion when looking to exit a trade at a moment's notice. It
would be best to use automated stops to program into your trading software the best
time to exit a trade. With a bit of practice, you can learn to rely on technical analysis,
Essential fundamental analysis, and math instead of emotions when currency trading.

The market will always move to the news. This works both ways: While the currency market is
always moving, it will move in both directions, both up and down. With this in mind, if you are in a
trade with good reason, only exit out of it with good reason.

You can go further with your trading journal and allow it to take on the properties of a news
journal. This will help you grasp how the news for your pairs has developed over the past months and