What is DJ 30 Trading Strategy? - Learn DJ 30 Index
The DJ 30 Stock Indices Trade Chart
The DJ 30 Stock Indices chart is displayed & shown above. On above example this instrument is named DJ 30CASH. As a trader you want to find a broker that provides DJ 30 chart so that you can begin to trade it. Example displayed above is of DJ 30 Stock Index on MT4 FX TradeTrading Platform.
Indices Strategy for Trading DJ 30 Stock Indices
The DJ 30 Stock Indices manner of calculating makes Dow 30 index more volatile and therefore there are much more wider swings in price movement of this Stock Index. Although this stock index generally move upwards 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 and a little more volatility.
As a trader you want to be biased & keep buying as the stock index moves upwards. When US economy is performing good (most times it's performing good) this upwards trend is more likely to be in-favor. A good indices trade strategy would be to buy the dips.
During Economic Slow-Down and 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 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 stock index that you're trading.
Contract Specifications
Margin Requirement Per 1 Lot - $ 150
Value per Pip - $ 0.5
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: strategy and at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About equity money management methods in indices lessons: What is index equity management and stock index money management strategies.
