What's DJI 30 Trading Strategy? - Learn DJI 30 Index
DJI 30 Indices Chart
DJI 30 Stock Index trade chart is illustrated and displayed above. On the above example illustration this financial instrument is named DJI30CASH. As a trader you want to find a broker that provides DJI 30 chart so that you as a trader can start to trade it. The example That is shown/illustrated above is that of DJI 30 Indices on MT4 FX Platform Software.
Indices Trade Strategy for Trading DJI 30 Stock Indices
DJI 30 Index recipe of calculating makes Dow 30 stock index more volatile & hence there are more wide swings in the price movement of this Stock Index. Although this stock index in general moves upwards over long-term because American 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 America economy is doing good (most of the times it is doing well) this upwards market trend is much more likely to be the one present. A good trading strategy for traders to use when trading this stock market index would be to keep buying and buy the dips.
During Economic Slow-Down & Recession
During economic slowdown and recession periods, corporations begin and start to report slower earnings and lowers growth projections. It is due to and because of this reason that investors begin to sell stocks of companies that are announcing and recording lower profits and hence Indices tracking these particular given stocks will also start to move & head downwards.
Therefore, during these times, trends are more likely to be going & moving downward and you as a trader should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the index which you are trading.
Contract Specifications
Margin Requirement Per 1 Lot - $150 dollars
Value per Pips - $ 0.5
Note: Even though general and overall trend is generally moves upwards, 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 & retracement, the market retracement move might also be a substantial one at times & therefore as the trader you need to time your trade entry strictly using this trading strategy: strategy & at the same time use the proper & suitable money management strategies/guidelines just in case there's unexpected market volatility. About equity money management techniques/methods in stock indices trading lessons: What's indices equity management and indices equity money management plan/system.
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