What's HSI50 Strategy? - Learn HSI50 Index

The HSI50Trade Chart

HSI50 chart is illustrated and shown above. On above example this Index is named HSI50CASH. As a trader you want to find a broker that provides HSI50 chart so that as you as a trader can begin to trade it. The example Which is illustrated & shown above is the one of HSI50 Indices on MT4.

Index Strategy to Trading HSI50 Stock Indices

HSI50 Indices tracks capitalization of top 50 firms in Hong Kong. This Stock Index in general moves upward over long term but it is more volatile in its trend movement. When compared to other indexes such as EUROSTOXX 50 and DAX 30 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 index will in general move upward, as a trader you want to be biased and keep on buying as the index heads and moves upward.

A good trading strategy to use when trading this stock market index would be to keep buying and buy the dips - though 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 economic slowdown & recession periods, companies begin and start to report slower profits & lowers growth projection. It's due to this reason that traders begin to sell stocks of firms that are posting lower profits & hence Indices tracking these particular given stocks also will begin to head and go downward.

Hence, during these times, trends are much more likely to be heading down 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.

Contract Specs

Margin Requirement for 1 Lot - HKD 450

Value per Pips - HKD 1

Note: Even though general and overall trend is generally move upward, as a trader you've to consider and factor on daily market price volatility, on some of the days the Indices might move in a range or even retrace and pull back, the market pullback move may also be a significant one at times & therefore as the trader you need to time your trade entry strictly using this trading strategy: strategy & at same time use the appropriate and proper/suitable money management guidelines/methods just in case there is unexpected market trend volatility. About money management strategies and guidelines in stock indices tutorials: What's index equity management & stock index equity management methods/strategies.

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