Trade Forex Trading

What is HSI50 Strategy? - Guide to Trade HSI50 Index

How Do You Trade HSI50 Stock Index? - What is HSI50 Strategies? Tutorial for Trading HSI50 Indices

The HSI50Chart

The HSI50 trade chart is displayed and illustrated above. On above example this Stock Index is named HSI 50CASH. As a trader you want to find a broker that provides HSI50 chart so that you can begin to trade it. Example displayed above is of HSI50 Stock Index on MT4 FX Trading Platform.

Strategy for Trading HSI50 Stock Indices

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

Over a long period of time this index will generally move upwards, as a trader you want to be biased and keep buying as the index moves upwards.

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

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies begin to report lower profits & lower growth prospect. It is due to this reason that investors begin to sell stocks of companies which are reporting lower profits & therefore Stock Indices tracking these specified stocks also will begin to move downward.

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

Contracts & Specifications

Margin Requirement Per Lot - HKD 450

Value per Pip - HKD 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 Indices might move in a range or even retrace and pull-back, the market retracement move might also be a substantial one at times and therefore as a trader you need to time your entry precisely when using this trading strategy: strategy & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About equity management strategies in Stock Indices lessons: What is Index equity management and Stock Indices money management methods.