What is EU50 Strategy? - Guide to Trade EU50 Index
The EU50 Stock Indices Trade Chart
The EU50 Stock Indices chart is displayed & shown below. On example below this trading instrument is named EU 50CASH. As a trader you want to find a broker that provides EU50 Stock Indices chart so that you can start to trade it. Example displayed below is of EU50 Stock Index on MT4 FX Trading Software.
Strategy for Trading EU50 Stock Indices
The EU50 Stock Indices is made up of blue chip stocks choosen from the top performing sectors in the Euro Zone: therefore a good indices trade strategy to trade EU50 Index is to trade long most times. This is because generally the best stocks in Europe will generally keep heading up & up because the corporations behind these stocks are the best & most lucrative corporations in Europe.
The EU50 Stock Indices is also revised yearly so that if one Indices isn't doing well then it's replaced with an alternative Indices that's doing good. This ensures that most times EU50 Stock Index will keep moving upwards.
As a trader you want to be biased and keep buying as the stock index moves upwards. When European economies are doing well 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 & recession times, companies begin 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 & 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 & Details
Margin Requirement Per Lot - € 40
Value per Pip - € 0.1
Note: Even though general trend is generally moves 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 & hence as a trader you need to time your entry precisely when using this 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 Stock Index money management & Indices equity management strategies.
