In the world of trading there are many factors that can influence the directional movement of an asset price over and above the normal supply and demand of that particular asset. In most cases a specific item of news is pencilled into a calendar and so it is a known factor that it will be released but that actual content will not be known, such as individual company results and economic indicators. Individual company results can not only have a bearing on that company but can also have a bearing on other stocks within the same market segment and in extreme circumstances if the company is prominent in that country it can also have a bearing on that overall market. With economic indicators the same can be said but they can have a much bigger influence as they are more likely to cause movements in both equity markets and foreign exchange markets should the data either disappoint or beat analyst forecasts.
So as a trader it is critical to understand the market that you are trading in, so the more information that you have to hand the better, it will help you to either maximise profits or minimise your losses. Before placing a trade you will need to be aware of what may influence the price of the asset you are trading in, it may be that company has its annual results out or there is a key piece of economic data being released whilst your trade is open. You may be aware of this and are intentionally looking to trade over the release of the information which is fine as you have done your pre trade checking, but it may be the case that you didn’t know and then for the sake of a quick 5 minute check to see what is due out you may have caused yourself to lose money. Now there is always the chance that there will be news out that is not expected, but then everyone is in the same boat, you are just interest in reducing the risks you can never have a risk free trade.
With the power of the internet it is very quick and easy to find out the information required prior to trading most if not all companies post the dates of the financial reports on their websites and there are websites that list upcoming company results. With economic data again you can find out what is due out normally for a whole week along with analyst forecast which will allow you to make a quick judgement when they are released.
As a trader the more information you have to hand the better judgement you can make and if you can reduce your risk of losing your hard earned money that has to be good thing.