What's HSI50 Strategy? - Learn Trading HSI50 Index
The HSI50Trade Chart
HSI50 chart is illustrated & shown above. On above example this Index is named HSI 50CASH. As a trader you want to find a broker that provides HSI50 chart so that you as a trader can begin to trade it. The example Which is shown above is that one of HSI50 Indices on MetaTrader 4.
Index Strategy to Trading HSI50 Stock Indices
HSI50 Stock Indices tracks capitalization of top 50 corporations in Hong Kong. This Stock Index generally moves upward over longterm but it is more volatile in its trend movements. When compared to other stock indexes such as EURO STOXX and 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 moves move upwards, as a trader you want to be biased and keep buying as the stock index moves upward.
A good index trade strategy would be to keep buying the dips - though as a trader wanting to trade this stock index, be prepared for generally much wider swings when it comes to trading this index.
During Economic Slow-Down and Recession
During economic slow-down & recession times, corporations begin to report lower profits & lower growth prospect. It's due to this reason that traders begin to sell stocks of firms that are reporting lower profits & hence 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 Specs
Margin Requirement Per Lot - HKD 450
Value per Pips - HKD 1
Note: Even though general trend is generally move upwards, as a trader you've to consider and factor in daily market volatility, on some of the days the Indices might 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: strategy and 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 stock indices tutorials: What's index equity management & stock index equity management strategies.
