SMI20 Stock Index
The SMI20 Index or Swiss Market Stock Index 20 is a Indices market indices that keeps track of top 20 companies in Six Swiss Exchange in Switzerland. This 20 stocks displayed represent the blue chip stocks in Six Swiss Exchange Market - these are also the most liquid stocks in this Stock Index exchange.
The SMI20 Chart
The SMI20 trade chart is displayed and illustrated above. On above example this Stock Index is named SWI 20CASH. As a trader you want to find a broker that provides SMI20 chart so that you can begin to trade it. Example displayed above is of SMI20 Indices on MetaTrader 4 Forex TradeSoftware.
Other Details about SMI20 Stock Indices
Official Indices Symbol - SMI:IND
The 20 components stocks which constitute SMI20 Stock Indices are chosen from the best performing corporations in France. The 20 stocks constitute majority of the turnover volume in the SIX Swiss Exchange Market. The calculation is re-evaluated yearly.
Trade System for SMI20 Index
The SMI20 Index tracks capitalization of top 20 companies in Switzerland. This Stock Index generally move upwards over long term because Swiss economy also shows strong growth. Swiss also has one of the strongest banking system in the globe - making Swiss economy one of the most reliable economy.
As a trader you want to be biased & keep buying as the stock index moves upwards. When Swiss economy is performing good most of these top stocks will continue moving up & therefore this stock index also will move in an upwards trend. A good indices trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, companies begin to report lower profits and lower growth prospect. It is due to this reason that investors start to sell stocks of companies which are reporting lower profits and therefore Indices tracking these specified stocks will also start to move downward.
Hence, during these times, market trends are likely to be moving downward 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 - CHF 100
Value per Pip - CHF 0.5
Note: Even though general trend is generally move upward, as a trader you've got to consider & factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the market retracement move may also be a significant one at times and therefore as a trader you need to time your entry precisely when using this trading strategy: strategy & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About stock index money management rules courses: What is money management & equity money management methods.
