Nikkei225 Index
The Nikkei225 Index is a market indices for Tokyo Bourse in Japan. This Stock Index tracks the stocks of top 225 companies displayed in Tokyo Bourse.
The NIKKEI 225 Chart
The NIKKEI 225 chart is displayed & shown above. On above example the stock index is named JP 225CASH. As a trader you want to find an online broker that provides NIKKEI 225 chart so that you can begin to trade it. The Indices example above is of NIKKEI 225 Stock Index on MT4 FX TradeTrading Platform.
Other Details about NIKKEI 225 Stock Index
Official Stock Indices Symbol - NKY:IND
The 225 components stocks which constitute NIKKEI 225 Indices are chosen from the best performing Japanese corporations. The NIKKEI 225 share index is closely followed as an indicator of the prosperity of Japanese businesses. The calculation of this Stock Index is a simple formula based on market capitalization.
Stock Indices Trade System for Trading NIKKEI 225 Index
The NIKKEI 225 Index shows relative movement of the top 225 stocks in Japan. Because this stock index tracks 225 companies it'll be more volatile when compared to an index like Germany DAX30 that only tracks 30 companies.
As a trader wanting to trade this stock index, this index is generally more volatile and the trend for this stock index although generally moves upward over a long time it'll have more oscillations than other Stock Indices. Your strategy should factor in more volatility when trading this index.
When the Japanese economy is performing good (most of the times it's performing good) this upward trend is more likely to be in-favor. A good stock indices trade strategy would be to buy the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies start to report lower profits & lower growth prospect. It is due to this reason that investors begin to sell stocks of companies which are reporting lower profits & therefore Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, trends are likely to be moving downwards and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contract Specifications
Margin Requirement Per Lot - JPY 90
Value per Pip - JPY 0.1
Note: Even though general trend is generally move upward, as a trader you've got to consider and factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the Stock Indices market retracement move may also be a significant one at times & hence as a trader you need to time your entry precisely when using this strategy: stock indices strategy & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About stock indices money management rules courses: What is money management & equity money management methods.
