What is HSI50 Strategy? - Course to Trade HSI50 Index

The HSI50Chart

The HSI50 trade chart is displayed and illustrated above. On above example this Stock Index is named HSI50CASH. As a trader you want to find a broker that provides HSI50 chart so that you as a trader can begin to trade it. Example displayed and illustrated above is of HSI50 Stock Index on MT4 Forex Platform Software.

Strategy for Trading HSI50 Stock Indices

The HSI50 Indices tracks the capitalization of top 50 corporations in Hong Kong. This Index in general moves upward over long term but it is more volatile in its trend movement. When compared to other indexes such as EURO STOXX & DAX30 which have lower volatility in their market trend movements, this stock index has wider swings in its trend movement.

Over a long period of time this stock index will in general move upward, as a trader you want to be biased and keep on buying as the index heads & moves upwards.

A good Indices trading strategy would be to buy the dips - although as a trader wanting to trade this stock index, be prepared for generally much wider swings(more volatile swings) when it comes to this stock index.

During Economic Slow-Down and Recession

During the economic slowdown & recession times, corporations begin and start reporting lower earnings, lower profits & lowers growth projection. It is due to and because of this reason that investors begin to sell stocks of companies which are announcing and reporting lower profits & therefore Indices tracking these given stocks will also start moving & going downwards.

Hence, during these times, market trends are a lot more likely to be moving downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downward trends of the index which you as a trader are trading.

Contracts & Specifications

Margin Requirement for 1 Lot - HKD 450

Value per Pip - HKD 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 market correction/retracement move might also be a large one at times and hence you as a trader you need to time your trade entry strictly when using this trading strategy: strategy & at the same time use appropriate & proper and suitable money management techniques and guidelines just in case there is unexpected volatility in the market movement. About equity management guidelines and methods in Stock Indices lessons: What is Index equity management & Indices money management plan/system.

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