What is HANG SENG 50 Strategy? - Guide to Trading HANGSENG50 Index
The HANGSENG50 Indices Trade Chart
The HANGSENG50 Indices chart is displayed & shown above. On above example this Index is named HK50CASH. As a trader you want to find a broker that provides HANG SENG 50 Stock Index chart so that you as a trader can begin to trade it. Example displayed and illustrated above is of HANGSENG50 Indices on MT4 Forex Platform Software.
Strategy for Trading HANGSENG 50 Stock Index
The HANGSENG50 Stock Indices tracks the capitalization of top 50 corporations in Hong Kong. This Index in general moves upward over long term but it is more volatile in its trend movement. When compared to other stock indices such as EURO STOXX & DAX30 which have lower volatility in their market trend movements, this stock index has wider swings in its trend movement.
Over a long time period this stock index will in general move upward, as a trader you want to be biased and keep on buying as the index heads & moves upwards.
A good stock index strategy would be to buy the dips - although as a trader wanting to trade this stock index, be prepared for generally much wider and more volatile swings when it comes to trading this stock index.
During Economic Slow-Down & Recession
During the economic slowdown recession times, corporations begin and start reporting lower earnings, lower profits and lowers growth projections. It is due to and because of this reason that investors start to sell stocks of companies which are reporting lower profits and therefore Indices tracking these specified stocks will also start and begin to move downwards.
Hence, during these times, market trends are a lot more likely to be moving downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index which you as a trader are trading.
Contracts & Specifications
Margin Requirement Per 1 Lot - HKD 450
Value per Pip - HKD 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 Indices might move in a range or even retrace and retracement, the market retracement move might also be a large one at times and therefore you as the trader you need to time your trade entry strictly when using this strategy: indices strategy & at the same time use proper & appropriate money management guidelines/techniques just in case there's unexpected volatility in the market movement. About stock index money management guidelines/techniques courses: What is Index equity management & Stock Index equity management system.
Study More Guides and Courses: