NKY225 Index
NKY225 Index is a Stock Indices market indices for Tokyo Stock Exchange in Japan. This Stock Index tracks the stocks of top 225 corporations displayed in Tokyo Stock Exchange.
NKY225 Chart
NKY225 chart is illustrated and shown above. On example above the stock index is named NKY 225CASH. As a trader you want to find an online broker that provides NKY225 trading chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of NKY225 Stock Index on MetaTrader 4.
Other Info about NKY225 Stock Indices
Indices Symbol - NKY:IND
The 225 constituent stocks that constitute NKY225 Stock Indices are selected from top performing Japanese firms. The NKY225 share stock index is closely followed as an indicator of the prosperity of Japanese businesses. The calculation of this index is a simple formula based on market capitalization.
Strategy to Trading NKY225 Stock Index
NKY225 Index represents relative trend movement of top 225 stocks in Japan. Because this stock index tracks 225 corporations it'll be more volatile when compared to an index like Germany DAX30 that only tracks 30 corporations.
As a trader wanting to trade this Stock Index, this Stock Index is generally more volatile & the market trend for this stock index although generally move upwards over a long time it'll have more oscillations than other Indices. Your strategy should factor in more volatility when trading this stock index.
When the Japanese economy is performing good (most times it's performing good) this upwards trend is more likely to be in place. A good index trade strategy would be to keep buying the dips.
During Economic Slow-Down and Recession
During economic slow-down and recession times, corporations start to report lower profits and lower growth prospect. It's due to this reason that traders start to sell stocks of firms that are reporting lower profits and hence Indices tracking these specified stocks will also start to move downward.
Hence, during these times, market trends are likely to be moving downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.
Contract Specs
Margin Requirement Per Lot - JPY 90
Value per Pips - JPY 0.1
Note: Even though general trend is generally moves upwards, as a trader you've to consider & factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the market pullbackretracement move may also be a significant one at times and therefore as a trader you need to mark-time your entry precisely using this trading strategy: Stock strategy & at same time use proper money management guide-lines just in case there's more unexpected volatility in the market trend. About equity management strategies in stock indices tutorials: What's stock index money management and stock index money management strategies.
