By learning about Forex daily statistics, you will be able to better manage your risk as a trader and understand how the various currencies are related. You can also learn how the different Forex pairs move over different time frames.
The Economic Calendar
As a trader, you need to remain aware of major economic announcements. If you are day trading, close all of your positions before a new announcement has been scheduled. Only start trading once again after the news is released.
If you are swing trading, make sure you are aware of any major economic news that may be announced. If the stop loss you have is extremely close to the price prior to a news announcement, you may want to consider closing the position because the announcement may result significant dumps / jumps possible, making a stop loss ineffective.
Current Interest Rates
Knowing the current interest rates in several zones can be beneficial if you are taking a longer-term position that is going to be subject to rollover every night. Rollover occurs when you are credited or debited the interest rate difference of the two currencies that are present in a Forex pair.
Forex Correlation Statistics
These let you know how a currency pair relates to the way another one moves. For example, you may have one pair that moves in a near identical manner to another one. In this situation, you should pick the one you like the best and then trade it. Taking the full position size for both of these currencies is going to double your reward or risk, since if you lose or win one, you are likely going to have the same results in the other.
Forex Volatility Statistics
These show how much a pair is moving – on average – over a certain period of time. This can help you assess how long it may take the price to reach a certain price target and may aid in setting the stop loss and target levels.
This shows the amount a pip is worth based on the pair you are trading. Every currency is going to be worth a different amount relative to another currency. The amount of a profit / loss is then generated by each pip of movement that is set by the currency pair that you are currently trading. The pip value is also impacted by the currency that your account is currently in.
By always having an awareness of all these statistics, you minimize taking unnecessary risks with your trades, thus increasing your chances for profits.
Article Source Link by Luis Nieves