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 to calculate these components are picked from 30 biggest corporations in the US.

The Dow Jones is the most popular & most followed Indices globally. The Dow Jones Industry Average originally tracked the performance of Industrial stocks but has changed to include stocks from other economic sectors of the economy. The main criteria being the stocks chosen are from the largest US corporations.

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 the Dow Jones Industry Average if they are more used to trading more stellar trends found in other top stock indices.

What is DowJones30? - Dow Jones Symbol in Forex

The DowJones30 Stock Index Chart

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

Other Information about DowJones30 Index

Official Symbol - DJI

The 30 components stocks which makes up DowJones30 Stock Index are chosen from the top America companies. The calculation of this stock index is however different compared to other Stock Indices: 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 Stock Index

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

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 good (most 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 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 companies which are reporting lower profits and therefore the Index tracking these specified stocks will also start to move downwards.

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

Contracts & Specifications

Margin Required Per 1 Lot - $150

Value per Pips - $ 0.5

NB: Even though general 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 Stock Index might oscillate or even retrace and pullback, market pull back move might also be a significant one at times & hence as a trader you need to time your trade entry precisely using this strategy: Stock Index strategy & at same time use proper money management rules just in case there's more unexpected volatility in the market movement. About equity management strategies in stock indices topics: What is index equity management & money management strategies.

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