What is DJ 30 Trading Strategy? - Learn DJ 30 Index
The DJ 30 Indices Trade Chart
The DJ 30 Stock Indices chart is displayed & shown above. On the above example illustration this financial instrument is named DJ30CASH. As a trader you want to find a broker that provides DJ 30 chart so that you as a trader can begin to trade it. Example displayed and illustrated above is of DJ 30 Stock Index on MT4 Forex TradeTrading Platform.
Indices Strategy for Trading DJ 30 Stock Indices
The DJ 30 Indices manner of calculating makes Dow 30 index more volatile & therefore there are much wider swings(more volatile swings) in the price movement of this Stock Index. Although this stock index generally move upward over long-term because US economy also shows strong growth & 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 stock index trader you want to be biased & keep on buying as the index heads & moves upward. When US economy is performing good (most times it's performing good) this upwards trend is more likely to be the one that is ruling. A good stock indices trading strategy would be to buy price dips.
During Economic Slow-Down and Recession
During economic slowdown & recession periods, corporations begin to report lower revenues, lower profits and lowers growth projections. It is due to this reason that investors begin to sell stocks of companies which are reporting and recording lower profits & therefore Indices tracking these specified stocks will also start and begin to move downwards.
Hence, during these times, market trends are more likely to be heading and going downwards and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index which you are trading.
Contract Specifications
Margin Requirement Per 1 Lot - $150
Value per Pip - $ 0.5 dollars
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 may move in a range or even retrace and pull back, the market retracement move may also be a significant one at times & therefore you as the trader you need to time your trade entry strictly when using this strategy: strategy & at the same time use appropriate and proper & suitable money management strategies/guidelines just in case there is more unexpected volatility in the market movement. About equity money management techniques & methods in indices lessons: What is index equity management and stock index money management strategies/methods.
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