What is EU50 Strategy? - Course to Trade EU50 Index
The EU50 Stock Indices Trade Chart
The EU50 Stock Index chart is displayed & shown below. On example laid-out below this financial instrument is named EU50CASH. As a trader you want to find a broker that provides EU50 Stock Index chart so that you as a trader can start to trade it. Example shown and displayed below is of EU50 Stock Index on MT4 FX Trading Software.
Strategy for Trading EU50 Stock Index
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 trading strategy to trade EU50 Index is to trade long majority of the times. This is because generally the best stocks in Europe will in general keep heading up and up this is because the companies and corporations behind these stocks are some of the best & most lucrative corporations in Europe.
The EU50 Indices is also re-evaluated yearly so that as if one Indices isn't doing good then it's replaced with an alternative Indices that is doing good. This ensures that majority of the times EU50 Stock Index will keep heading upward.
As a stock index trader you want to be biased and keep on buying as the index heads and moves upward. When European economies are doing & performing well this upwards market trend is more likely to be the one that is current. A good index trading strategy would be to buy price dips.
During Economic Slow-Down and Recession
During the economic slowdown recession times, corporations begin reporting lower earnings, lower profits and lowers growth projections. It is due to this reason that investors begin to sell stocks of companies which are posting lower profits & therefore Index tracking these specific stocks will also start heading and going downwards.
Hence, during these times, trends are much more likely to be heading and going downwards & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index which you are trading.
Contracts and Details
Margin Requirement Per 1 Lot - € 40
Value per Pip - € 0.1
Note: Even though general and overall trend is generally moves upward, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Index may move in a range or even retrace and pull back, the market correction/retracement move may also be a significant one at times & hence as the trader you need to time your trade entry accurately when using this strategy & at the same time use appropriate/proper money management guidelines/principles just in case there's unexpected volatility in the market. About Index money management rules courses: What is Stock Index money management strategies/guidelines & Indices equity management plan/system.
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