What's DJI 30 Trading Strategy? - Learn DJI 30 Index
DJI 30 Stock Indices Chart
DJI 30 Stock Index trade chart is shown & displayed above. On the above example this instrument is named DJI 30CASH. As a trader you want to find a broker that provides DJI 30 chart so that you can start to trade it. The example That is shown above is that of DJI 30 Indices on MetaTrader 4 Forex Software.
Indices Trade Strategy for Trading DJI 30 Stock Indices
DJI 30 Stock Index recipe of calculating makes Dow 30 stock index more volatile and hence there are more wide swings in the price movement of this Stock Index. Although this index in general moves upwards over long-term because American economy also shows strong growth and is also the biggest 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 upward. When America economy is doing well (most times it is doing well) this upwards trend is more than likely to be ruling. A good index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, firms begin to report lower profits and lower growth prospect. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits and hence Stock Indices tracking these specified stocks also will begin to move downward.
Therefore, during these times, trends are likely to be moving downwards and you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.
Contract Specifications
Margin Requirement Per 1 Lot - $ 150
Value per Pips - $ 0.5
Note: Even though general trend is generally moves upwards, as a trader you have to consider and factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace and pull-back, the market retracement move might also be a substantial one at times & therefore as a trader you need to mark-time your trade entry precisely using this trade strategy: strategy & at same the time use proper equity money management guidelines just in case there is more unexpected volatility in the market. About equity money management methods in stock indices lessons: What's indices equity management and stock indices equity money management strategies.
