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 the above example illustration this financial instrument is named USA 30CASH. As a trader you want to find a broker that provides US 30 chart so that you as a trader can begin to trade it. Example displayed and illustrated above is of US 30 Stock Index on MT4 FX TradeTrading Software.
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 wider swings(more volatile swings) in the price movement of this Stock Index. Although this index in general moves upward over long-term because US economy also shows strong growth & is also the biggest 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 stock index trader you want to be biased and keep on buying as the index heads & moves upwards. When US economy is performing good (most of the times it's performing good) this upward trend is more likely to be the one present. A good stock index trading strategy would be to buy price dips.
During Economic Slow-Down & Recession
During economic slowdown and recession periods, corporations start to report slower earnings, slower profits and lowers growth projections. It is due to this reason that investors begin to sell stocks of companies which are announcing & reporting lower profits & therefore Indices tracking these given stocks will also begin to go downward.
Hence, during these times, trends are much more likely to be heading & going downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index which you as a trader are trading.
Contract Specifications
Margin Requirement Per 1 Lot - $150
Value per Pip - $ 0.5 dollars
Note: Even though general and overall trend is generally move upwards, 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 Indices market retracement move might also be a large one at times and hence you as the trader you need to time your trade entry strictly when using this strategy: Stock strategy & at the same time use the appropriate & proper & suitable money management guidelines/methods just in case of unexpected volatility in the market. About equity management rules/guidelines in stock indices courses: What is money Index management & indices equity management plan/system.
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