What's AS 51 Strategy? - Course to Trade AS 51 Index
The AS 51 Trade Chart
AS 51 chart is displayed & illustrated above. On above example this instrument is named AS 51CAS. As a trader you want to find a broker that provides AS 51 chart so that you as a trader can begin to trade it. The example Which is shown above is that one of AS 51 Indices on MT4 Forex Software.
Strategy to Trading AS 51 Indices
AS 51 Indices will generally moves move up because stock prices always move upward over time. This Stock Index generally moves upward over longterm because Australian economy also shows strong growth backed by their mining sector which has great reserves of XAUUSD & other valuable commodities.
As a trader wanting to trade this index, the stock index will move upward faster when the Australian economic indicators show accelerated economic growth.
As a trader you want to be biased and keep buying as the index moves upwards. When Australian economy is performing good (most of the times it's performing good) this upward trend is more likely to be in place. A good stock index trade strategy would be to keep buying the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, corporations begin to report lower profits & lower growth prospect. It's due to this reason that traders begin to sell stocks of firms that are reporting lower profits & hence Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, 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.
Contracts and Details
Margin Requirement Per Lot - AUD 70
Value per Pips - AUD 0.1
Note: Even though general trend is generally move upwards, as a trader you've to consider and factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the market pullbackretracement move might also be a substantial one at times and hence as a trader you need to mark-time your entry precisely using this trading strategy & at same time use proper money management guide-lines just in case there's more unexpected volatility in the market trend. About equity management strategies in Stock Indices tutorials: What's Stock Index equity management & Stock Indices money management methods.
