What's DJ 30 Strategy? - Guide to Trading DJ 30 Index
DJ 30 Chart
DJ 30 chart is illustrated and shown above. On above example this instrument is named DJ 30CASH. As a trader you want to find a broker that provides DJ 30 Index chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of DJ 30 Stock Index on MetaTrader 4 FX Trading Platform.
Strategy to Trading DJ 30 Stock Indices
DJ 30 Stock Indices technique of calculating make Dow 30 index more volatile and hence there are wider swings in price movement of this stock index. Although this stock index generally moves upward over longterm because USA economy also shows strong growth and is also the largest economy in the world.
As a trader wanting to trade this index, be prepared for wider price swing and a little more volatility.
As a trader you want to be biased and keep buying as the index moves upwards. When USA 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 & Recession
During economic slow-down and recession times, corporations start to report lower profits and lower growth prospect. It's due to this reason that traders start to sell stocks of firms that are reporting lower profits and 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 1 Lot - $ 150
Value per Pips - $ 0.5
Note: Even though general trend is generally moves upwards, as a trader you've to consider & factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the market pullbackretracement move may also be a significant one at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: index trading strategy & at same time use proper equity management guide-lines just in case there's more unexpected volatility in the market trend. About money management methods in Indices lessons: What's Stock index money management and Indices equity management strategies.
