Trade Forex Trading

Dow Jones Industrial Average or the Dow 30 - Wall Street 30 Index

The Dow Jones Industrial Average or the Dow 30 is a stock market index that tracks 30 of the largest stocks in the USA. The stocks that are used to calculate this components are picked from 30 biggest companies in the USA.

The DJIA is the most popular/liked and most followed stock index globally. The Dow Jones Industrial Average originally tracked the performance of Industrial stocks but has changed to include stocks from other sectors of the over-all economy. The main criteria being the stocks selected are from the largest American companies.

The DJIA is more volatile than most of the other Top Indices, The DJIA although will over the long term trend upwards it'll have more price pull back and more consolidations than other indices. Traders may prefer to trade other indices other than the Dow Jones Industrial Average if they are more used to trading the more stellar & robust trends found in other top indices.

DJIA 30 Index - DJIA 30 Index - DJIA 30 Index Trade Strategy

The DJIA 30 Index Chart

The DJIA 30 Index chart is displayed above. On the illustration put on display above this trading instrument is named as US30CASH . As a forex trader you want to find a broker that provides this The DJIA 30 Index chart so that you as a trader can start to trade it. The example above is of DJIA 30 Index on the MetaTrader 4 FX & Stock Index Trading Platform .

Other Data about DJIA 30 Index

Official Symbol - DJI

The 30 component stocks that make up the DJIA 30 Index are picked from the top American companies. The calculation of this index is however different compared to other Indices: the price component of the 30 stocks is divided by a common divisor to come up with this index. This makes this stock index more volatile than others.

Strategy for Trading DJIA 30 Index

The DJIA 30 Index method of calculation make the Dow 30 index more volatile therefore there are more wide swings in the price moves of this index. Although this index generally moves up over the long-term because the American economy also indicates robust growth & is also the largest economy in the world.

As a currency trader wanting to trade this index, be prepared for wider price swing and a little more volatility.

As a index trader you want to be more biased and keep buying as the stock index moves upwards. When the US economy is performing & doing well (most of the times it's performing & doing well) this upward trend is more than likely to be ruling. A good strategy would be to buy the price dips.

Contracts and Specifications

Margin Required Per 1 Lot - $ 150

Value per 1 Pip(Point) - $ 0.5

Note: Even though the general and overall trend is in general upwards, as a forex trader you have got to factor in the daily price volatility, on some days the stocks may oscillate or even retrace, the retracement might also be substantial some times and hence as a currency trader you need to time your trade entry accurately using this strategy: Indices strategy and at the same time use suitable and proper & appropriate money management guidelines and techniques in case there is unexpected price market trend volatility. About money management rules topics: What's money management and money management methods.

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