The volatile moves we’ve seen following the last two Federal Open Market Committee announcements have reminded traders how important it is to keep tabs on the U.S. economic calendar.

We’ve got some important announcements coming this week, with the minutes from the last FOMC meeting due out Wednesday afternoon, jobless claims on Thursday morning, and consumer sentiment data Friday morning. As an investor or trader, it’s important to know not just what’s on the docket each trading day, but to identify which ones could matter to you.

Your Trading Week May Already Be Pre-Determined

There are several scheduled economic events every week that, even though the market knows they’re coming, have the ability to change what happens in the markets – and, in turn, your portfolio. The good news is, you can anticipate and even get positioned to benefit from them.

It seems a bevy of news regarding the strength (or lack thereof) of the economy is released nearly every day. From inflation and unemployment reports, to manufacturing and housing stats, traders have a plethora of numbers to analyze.

If you’re like many traders, though, you may find the size and scope of the economic calendar a bit intimidating. It can be easy to get lost in a sea of numbers. Today I’m going to give you a brief guide to finding an economic calendar, and best using it to your advantage.

1. Find an Economic Calendar

Before you can analyze an economic calendar, you have to be able to find one. There are a variety of Web sites that provide this information in one convenient location.

Some offer a simple layout with minimal information about the timing of each release. Others offer in-depth material about the history of the data being released and market expectations for the upcoming number. I’ve found the calendar provided by Bloomberg to be one of the more informative.

2. Avoid the Noise

Most economic releases are simply noise, and should be treated as such. So, you should approach the economic calendar with moderation.

To avoid information overload, you should focus on the handful of key announcements that have a history of generating large market moves. Perhaps the two biggest releases to watch are FOMC announcements and the employment report.

A. The employment report is released monthly and includes a variety of metrics that reflect the overall health of the jobs market. In addition to the unemployment rate, investors also learn of the jobs gained or lost for the month, the average workweek and average hourly earnings.

Because the report is released on Friday mornings before the market opens (8:30 a.m. Eastern), you should make any adjustments to your positions that may be affected before the market closes on Thursday.

B. The FOMC regularly meets eight times a year to discuss the overall health of the economy and any changes that may need to be made regarding monetary policy. Following each meeting, a statement is released at 2:15 p.m. Eastern that sums up their economic outlook, informs investors of any changes to be made to interest rates, and any new programs the Fed plans to implement.

3. Be Prepared

Major economic releases are akin to earnings announcements for the overall market. They are sure to increase volatility and may even cause a notable gap if released outside of the regular trading session.

Though an uptick in volatility is all but assured, the direction of the move remains elusive. The key is to be prepared heading into the event. Consider the following three suggestions to maintain more of a defensive posture:

A. In order to protect profitable positions within your portfolio, try tightening stop losses so that you avoid giving back hard-earned gains in the event of a large adverse move.

B. Reducing the size of your position by taking partial profits is also an effective way to play defense heading into an announcement. Consider selling half or one-third of your position to lock-in gains while leaving yourself open to the accumulation of additional profits.

C. Avoid entering new trades just before the announcement. Given the heightened uncertainty surrounding an economic release, it’s not really the best time to start making aggressive bets.