UsTec100 Stock Index
The UsTec100 is an index that include 100 of the largest companies displayed in UsTec 100 Stock Indices exchange market that aren't in financial sector. The calculation of this index is based on weighted factor of market capitalization of shown 100 securities. The 100 companies displayed on this stock index are reviewed quarterly.
The 100 companies used to calculate this stock index aren't necessarily based in US: foreign international corporations are also included as long as they're displayed in UsTec 100 Bourse.
The UsTec100 Chart
The UsTec100 trade chart is displayed & shown above. On above example this Stock Index is named US 100CASH. As a trader you want to find a broker that provides UsTec100 trading chart so that you can start to trade it. The Indices example displayed above is of UsTec100 Stock Indices on MetaTrader 4 Forex TradeSoftware.
Other Details about UsTec100 Stock Indices
Stock Index Symbol - QQQ:IND
The 100 components stocks which constitute UsTec100 Index are calculated using a weighted factor for each stock. The constituent stocks and weighting for each Index is re-evaluated quarterly.
Trading Strategy for Trading UsTec100 Index
The UsTec100 Index approach of calculating makes it more volatile and therefore there are much more wider swings in price movement of this Stock Index. The has a weighting component for each Index included on this stock index. Although this index generally moves upward over long term because US economy also shows strong growth.
As a trader you want to be biased and keep buying as the index moves upwards. When US economy is performing good, the stocks which constitute UsTec100 index will keep gaining in values and thus this stock index is likely to keep heading in an upwards trend. A good stock indices trade strategy to trade this Stock Index 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 start to sell stocks of companies which are reporting lower profits and therefore 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 Specifications
Margin Requirement Per Lot - $ 30
Value per Pip - $ 0.1
Note: Even though general trend is generally moves upward, as a trader you've got to consider & factor in daily market volatility, on some of the days the Stock Indices might move in a range or even retrace and pull-back, the 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 & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About equity management methods in indices lessons: What is index equity management and index equity management strategies.
