What's AS 51 Index Trade System? - Learn Trading AS 51 Index

The AS 51 Chart

AS 51 trading chart is shown and illustrated above. On the above example this instrument is named AS 51CAS. As a trader you want to find a broker that provides AS 51 trading chart so that you can begin to trade it. The example That is shown above is that of AS 51 Indices on MetaTrader 4 Forex Software.

Trade System for Trading AS 51 Stock Indices

AS 51 Stock Indices will in general moves move up because shares prices always move upward over time. This Index in general moves upwards over long-term because Australian economy also shows strong growth backed by their mining sector which has great reserves of Gold & other valuable commodities.

As a trader wanting to trade this stock index, the index will move upwards faster when the Australian economic indicators show accelerated economic growth.

As a trader you want to be biased and keep buying as the stock index moves upward. When Australian economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good Stock Indices trade strategy would be to keep buying the dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, firms start to report lower profits & lower growth prospect. It is because of this reason that investors start to sell stocks of companies that are reporting lower profits & hence Indices tracking these specified stocks will also start to move downward.

Therefore, during these times, market trends are likely to be moving downwards and you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.

Contract Specifications

Margin Requirement Per Lot - AUD 70

Value per Pips - AUD 0.1

Note: Even though general trend is generally moves upwards, as a trader you have to consider and factor in daily market volatility, on some of the days the Stock Indices might move in a range or even retrace & pull-back, the market retracement move might also be a substantial one at times & therefore as a trader you need to mark-time your trade entry precisely using this trade strategy & at same the time use proper equity money management guidelines just in case there is more unexpected volatility in the market. About money management methods in Indices topics: What's money management & equity management methods.