Dow Jones Industry Average or Dow 30 - Wall Street 30 Stock Index

Dow Jones Industry Average or Dow 30 is a market indices that keeps track of 30 of the largest stocks in the US. The stocks that are used in calculating these components are picked from 30 biggest companies in the US.

The Dow Jones is the most liked & most followed Indices globally. The Dow Jones Industry Average stock index traditionally kept track of the performance of Industrial stocks but that has changed to include also stocks from other economic sectors of the overall economy. Main criteria being the stocks chosen are from the largest US companies.

The Dow Jones is more volatile than most of the other Top Indices, The Dow Jones though will over the long term trend upward it'll have more price pull backs and more consolidations than other Indices. Traders might prefer to trade other indices other than Dow Jones Industry Average if they are more used to trading more stellar & robust trends found in the other top stock indices.

What is DowJones30? - Dow Jones Symbol in Forex

The DowJones30 Stock Index Chart

The DowJones30 Index chart is displayed & portrayed above. On the above illustration this financial instrument is named USA 30CASH. As a trader you want to find a broker that provides DowJones30 Index chart so that as you as a trader can start to trade it. Example displayed above is of DowJones30 Index on the MT4 Forex Platform Software.

Other Information about DowJones30 Index

Official Symbol - DJI

The 30 components stocks which makes up DowJones30 Index are chosen from the top America companies. The calculation of this stock index is however different compared to other Index: the price constituent of the 30 stocks is sub-divided by a common divisor so as to come up with this stock index. This makes this index more volatile than others.

Strategy of Trading DowJones30 Index

DowJones30 Stock Index approach of calculation make Dow 30 index more volatile and therefore there are much wider swings in price movement of this index. Although this stock index generally move upwards over long-term because the US economy also indicates strong growth and is also the largest economy in the globe.

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

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

During Economic SlowDown & Recession

During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of corporations which are posting & recording lower profits and therefore the Index tracking these specified stocks will also start to move downwards.

Hence, during these times, market trends are a lot more likely to be heading downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index which you are trading.

Contracts & Specifications

Margin Required Per 1 Lot - $150

Value per Pips - $ 0.5

NB: Even though general and overall trend is generally moves upwards, as a trader you have to consider and factor in the daily market volatility, on some of the days the Index might oscillate or even retrace and retracement, market retracement/correction move might also be a large one at times & therefore you as a trader you need to time your entry precisely using this strategy: Index strategy & at the same time use the suitable and appropriate & appropriate and proper money management principles and guidelines just in case there's more unexpected volatility in the market. About equity management rules and guidelines in stock indices topics: What is index equity management & money management strategies.

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