In order to make consistent profits on the Forex, you would first have to do some analysis of your own.
There are traders who prefer to take the technical analysis route. This involves learning how to read candlestick charts, make use of signals or advisors, and identify trends among many other methods. If you are comfortable with numbers, graphs, and algorithms, then working with these technical aspects might be just right for you.
If not, you can follow the traders who go by the fundamental analysis route where, instead of dealing purely in numbers, market forces and events are examined. At the top of the list of these forces and events is the interpretation of economic indicators which heavily affects currencies even though they don’t deal with the Forex directly.
Economic indicators are statistics, reports, or even statements that, just like their name, attempt to describe how a country’s economy is doing. On any given week all throughout the year, multiple types of economic indicators are released with some focused on specific aspects or industries, such as retail stores and factories, while others take on a much broader view of various markets like regarding jobs and how much money people are spending.
Forex traders always keep an eye out for the release of economic indicators since they can have a drastic impact on the value of currency pairs. Remember that currencies are heavily reliant on the economy where it is most used which makes it highly important to be constantly updated on any news regarding it. Even if you have comprehensively analysed and interpreted a pair’s charts and graphs, all it takes is a timely piece of economic information to be released for your trade to go the opposite of where you wanted it to.
Good thing that most economic indicators are sent out to the public on a regular basis on dates that are announced months ahead of time. This means that you can easily avoid being blindsided by sudden events or even use those economic indicators as a basis to make a profit.