NKY225 Index

The NKY225 Index is a Indices market indices for Tokyo Bourse in Japan. This Stock Index tracks the stocks of top 225 companies displayed in Tokyo Stock Exchange Market.

NKY 225 Stock Indices Trading Strategy - NKY225 Stock Indices Trading Strategy

NKY 225 Chart

The NKY225 chart is displayed & shown above. On above example the index is named NKY225CASH. As a trader you want to find an online broker that provides NKY225 chart so that you as a trader can start to trade it. Example displayed and illustrated above is of NKY225 Index on MT4 FX TradeTrading Platform.

Other Details about NKY225 Indices

Official Indices Symbol - NKY:IND

The 225 components stocks which constitute NKY225 Indices are chosen from the best performing Japanese companies. The NKY225 share index is closely followed as an indicator of the performance of the Japanese businesses. The calculation of this stock index is a simple formula based on the market capitalization.

Trading Strategy for Trading NKY225 Index

The NKY225 Index shows relative movement of the top 225 stocks in Japan. Because this stock index tracks 225 companies it will be more volatile when compared to an stock index like Germany DAX30 that only tracks 30 companies.

As a trader wanting to trade this Index, this Stock Index is generally more volatile and the trend for this stock index although in general moves upward over a long time it will have more oscillations than other Stock Index. Your strategy should factor in more volatility when trading this index.

When the Japanese economy is performing good (most of the times it's performing good) this upward trend is much more likely to be the one that is current. A good indices strategy would be to buy price dips.

During Economic Slow-Down and Recession

During the economic slowdown & recession times, corporations start reporting slower revenues, slower profits and lowers growth projections. It is due to this reason that investors start to sell stocks of companies which are reporting & recording lower profits and 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 going and moving down & 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 for 1 Lot - JPY 90

Value per Pip - JPY 0.1

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 might move in a range or even retrace & retracement, the Indices market retracement move may also be a big one at times & hence as a trader you need to time your trade entry strictly when using this strategy & at the same time use proper/suitable money management rules/guidelines just in case there is more unexpected volatility in the market. About money management methods & guidelines in stock indices topics: What is stock indices equity management & indices equity management plan/system.

Get More Topics: