What is US 30 Indices Trade Strategy? - Learn US 30 Index
The US 30 Stock Index Trade Chart
The US 30 Indices chart is displayed and illustrated above. On above example this instrument is named US 30CASH. As a trader you want to find a broker that provides US 30 chart so that you can begin to trade it. Example displayed above is of US 30 Stock Index on MT4 FX TradeTrading Platform.
Trading Strategy for Trading US 30 Stock Indices
The US 30 Stock Index manner of calculating makes Dow 30 stock index more volatile & therefore there are much more wider swings in price movement of this Stock Index. Although this index generally moves upward over long term because US economy also shows strong growth and is also the largest economy in the world.
As a trader wanting to trade this stock index, be prepared for wider price swing & a little more volatility.
As a trader you want to be biased and keep buying as the index moves upwards. When US 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 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, trends are likely to be moving downwards and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contract Specifications
Margin Requirement Per 1 Lot - $ 150
Value per Pip - $ 0.5
Note: Even though general trend is generally move upward, as a trader you've got 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 Stock Indices 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: Stock 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 tutorials: What is money Stock Index management & indices equity management strategies.
