What is HANG SENG 50 Strategy? - Guide to Trading HANG SENG 50 Index
The HANG SENG 50Stock Indices Trade Chart
The HANG SENG 50 Indices chart is displayed & shown above. On above example this Index is named HK 50CASH. As a trader you want to find a broker that provides HANG SENG 50 Stock Index chart so that you can begin to trade it. Example displayed above is of HANG SENG 50 Indices on MetaTrader 4 FX Trading Software.
Strategy for Trading HANG SENG 50 Stock Indices
The HANG SENG 50 Stock Indices tracks capitalization of top 50 companies in Hong Kong. This Index generally moves upward over long term but it is more volatile in its trend movements. When compared to other stock indexes such as EURO STOXX & DAX30 which have lower volatility in their trend movements, this index has wider swings in its trend movements.
Over a long period of time this stock index will generally move upwards, as a trader you want to be biased and keep buying as the index moves upwards.
A good indices trade strategy would be to buy the dips - although as a trader wanting to trade this stock index, be prepared for generally much wider swings when it comes to trading this index.
During Economic Slow-Down and Recession
During economic slow-down & recession times, companies begin to report lower profits and lower growth prospect. It is due to 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 to move downward.
Hence, during these times, market trends are 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 that you are trading.
Contracts & Specifications
Margin Requirement Per Lot - HKD 450
Value per Pip - HKD 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 Indices might move in a range or even retrace & pull-back, the market retracement move might also be a substantial one at times and therefore as a trader you need to time your entry precisely when using this trading strategy: indices strategy and at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About stock index money management rules courses: What is Index equity management and Indices equity management strategies.
