How Risk Can be Minimized through Economic Calendar?

  • Asked By
  • Updated On:
    28-Jan-2021
  • Replies:
    2

Short Answer

An economic calendar shows the important news or data that are extremely vital for the investors, traders, speculators and so on. See how risk can be minimized through an economic calendar.

Detailed Answer

It can be said without a doubt, that the stock market is both volatile and competitive. If you want to achieve success in the market and get better returns, then it is important that you keep track of the important financial or economic events taking place across the globe.

Now, the main question that arises here how is this possible? It is certainly a very annoying and tiresome activity to visit different websites and search for economic events happening in different countries. This is where an economic calendar comes to your rescue.

How an Economic Calendar May Benefit You?

An economic calendar shows the important news or data that are extremely vital for the investors, traders, speculators and so on. The various events or data that can be determined quite easily from the calendar are as follows:

  1. Gross Domestic Product (GDP)
  1. Industrial production
  1. Interest rate decisions
  1. Production price index
  1. Trade balance
  1. Building permits
  1. Core retail sales
  1. WPI inflation
  1. OPEC monthly report
  1. Building permits
  1. Non-farm payroll numbers

If you look at an economic calendar carefully, then you will notice that certain events have been graded as the low, medium and high impact. As an investor, you should keep a close watch on the high impact data there is high possibility that it may affect the stock market negatively. After taking into an account, the data, you can plan your investment in the market accordingly.

All in all, monitoring the calendar constantly on the daily basis, helps you to reduce the risk and get profitable returns. It is important that you must react quickly according to the changing economic or financial events. You must browse the websites offering the real time updates on the calendar and for this purpose, you can trust the websites of the best stock advisory companies that also offer the right advice to the people and guide them to plan their next course of action.

Tagged With: economic calendarminimize riskeconomic calendar benefitsrisk minimized
Categories: Finance
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (1)

Hi, nice information on economic calendar. We can't remove risk completely. But, we can at least plan systematically and analyse what's available to minimise this risk. Keeping track of important financial events and market trends is really helpful in taking the correct decisions. It isn't a sure shot formula, but of course a better way to plan your investments. What do you think?

Related FAQs
What is difference between Fixed Deposit vs Mutual Fund? Meaning

Fixed Deposit (FD) are saving tools offered by banks to deposit lump sum amount for a fixed period of time on a higher interest rate than saving accounts. Mutual funds are investment products which pool money from numerous small investors to create a fund.

What are arbitrage Funds? Meaning, Taxation

Arbitrage Funds are mutual funds with an objective to profit from inefficiency in the price of securities in two different markets. We look at their taxation, meaning and difference with liquid funds in this post. The fund invests in equity and debt instruments.

When should your stop you SIPs?

SIPs or a Systematic Investment Plan is a great tool to build money in the long run with a minimum time period of 5-10 years. It offers multiple advantages like a low minimum capital requirement, averaging benefit, formation of investing habits, etc. However, the most adequate time to stop your SIPs is when your financial goals are met or when you feel to change the objective of your investments.

What is an Option Spread? Meaning, Types & Examples

Option Spreads are usually used to hedge a position and try to increase the chances to make money. By doing this we limit our profits but most importantly we minimize our losses that is the most important part in trading, which is to preserve our capital.

What are the types of trading, which is the most profitable technique?

Trading can be done employing many techniques. Some of them are Intraday trading, swing trading, scalping, and positional trading. Intraday and scalping comprise two forms of trading where the positions are squared off on a particular day. Whereas in positional and swing trading, the positions are held on for weeks or months.

Where to invest money for good returns in India? High Return Investments

We all look to earn good returns on the money we invest. Putting money in High return investments is one way of generating better income. The different places to get good returns are mutual funds, equity, and gold investment in India.

How to become a profitable Options Trader in India?

With the increasing exposure of the stock markets, more and more people are trying a hand in options trading. Options trading have become a lucrative place for individuals to earn money. The reality is certainly different. More than 95% of individuals lose money in Options trading, There are various reasons behind this. Find out the reasons for losses and the steps by which you can be a profitable options trader here.

How to get exposure in U.S stocks?

Investing in abroad markets has become quite easy these days. One can get direct and indirect exposure into the U.S. market through various methods. Investing in foreign markets like the U.S provides many benefits like Diversification into the top companies of the world, Benefit of Currency Depreciation, etc. Apart from directly purchasing the stocks listed on the U.S. stock exchanges, there are some different methods as well. Know the best methods of getting exposure to the U.S. stock markets.

What to not do when trading Options?

Options trading offers many options to traders, investors as well as hedgers. There are some common mistakes that option traders commit. Five of the most common mistakes are, taking too much leverage, not having a pre-defined stop loss and target, acting on tips on social media, adhering to buying options, and taking unhedged trades.

What are Index Funds? Meaning, Advantages, Review, Taxation

Index funds are mutual funds in which investment are made in the stocks of Index they track such as Nifty, Sensex according to its composition and weightage of the index.