What is DAX30 Strategy? - Guide to Trading DAX30 Index
The Germany DAX30 Trade Chart
The Germany DAX30 chart is displayed & shown above. On above example this instrument is named GER 30CASH. As a trader you want to find a broker that provides Germany DAX30 chart so that you can start to trade it. Example displayed above is of Germany DAX30 Stock Index on MT4 FX Trading Platform.
Strategy for Trading Germany DAX30 Stock Indices
The Germany DAX30 Stock Indices is made up of blue chip stocks which trade in Frankfurt Bourse selected from the top performing sectors in Germany; therefore a good indices trade strategy to trade Germany DAX30 Index is to trade long most times. This is because generally the best stocks in Frankfurt Bourse will generally keep heading up and up because the corporations behind these stocks are the best & most lucrative corporations in Germany.
The Germany DAX30 Stock Indices is also revised few times each year so that if one Indices isn't doing well then it's replaced with an alternative blue chip Indices that's doing good. This ensures that most times Germany DAX30 Stock Index will keep moving upwards.
As a trader you want to be biased and keep buying as the index moves upwards. When German 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 and 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 & 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.
Contracts and Specifications
Margin Requirement Per Lot - € 85
Value per Pip - € 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 & pull-back, the 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 index equity management guidelines courses: What is Stock Index money management & Indices equity management strategies.
