NKY225 Stock Index
The NKY225 Index is a Stock Indices market indices for Tokyo Bourse in Japan. This Stock Index tracks the stocks of top 225 companies displayed in Tokyo Bourse.
The NKY225 Chart
The NKY225 chart is displayed & shown above. On above example the stock index is named NKY 225CASH. As a trader you want to find an online broker that provides NKY225 chart so that you can start to trade it. Example displayed above is of NKY225 Stock Index on MT4 FX TradeTrading Platform.
Other Details about NKY225 Stock Indices
Official Stock Indices Symbol - NKY:IND
The 225 components stocks which constitute NKY225 Stock Indices are chosen from the best performing Japanese corporations. The NKY225 share index is closely followed as an indicator of the prosperity of Japanese businesses. The calculation of this stock index is a simple formula based on market capitalization.
Trading Strategy for Trading NKY225 Index
The NKY225 Index shows relative movement of the top 225 stocks in Japan. Because this index tracks 225 companies it'll 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 & the market trend for this stock index although generally moves upward over a long time it'll have more oscillations than other Stock Indices. 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 more likely to be in-favor. A good stock indices trade strategy would be to buy the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that investors start to sell stocks of companies which are reporting lower profits and therefore Indices tracking these specified stocks will also start to move downward.
Hence, during these times, market trends are likely to be moving downwards & 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 Lot - JPY 90
Value per Pip - JPY 0.1
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 might move in a range or even retrace and pull-back, the Stock Indices 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 and at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About money management methods in stock indices topics: What is stock indices equity management & stock indices equity management strategies.
