US100 Stock Index
US100 is an index that include 100 of the biggest firms illustrated & shown on US 100 Indices exchange market that aren't in financial sector. The calculation of this stock index is based on a weighted component of the market capitalization of shown 100 securities. The 100 companies illustrated and shown on this stock index are reviewed quarterly.
The 100 corporations used to calculate this stock index aren't necessarily based in US: international foreign firms are also included so long as they are displayed in US 100 Stock Exchange Market.
US 100 Chart
US100 chart is displayed & shown above. On above example this Stock Index is named USA 100CASH. As a trader you want to find a broker that provides US100 chart so that as you as a trader can begin to trade it. The Indices example shown above is of US100 Stock Indices on MT4 Software Platform.
Other Info about US100 Indices
Indices Symbol - QQQ:IND
The 100 component stocks that constitute US100 Index are calculated using a weighted component for each stock. The constituent stocks and weighting for each Index is reviewed quarterly.
Strategy to US100 Stock Index
US100 Index formula of calculating makes it more volatile & hence there are wider and more volatile swings in the price movement of this Stock Index. The index has got a weighting component for each Index included on this stock index. Although this stock index in general moves upwards over long term because US economy also shows strong growth.
As a stock index trader you want to be biased & keep on buying as the index heads & moves upward. When USAUS economy is performing good, the stocks that constitute US100 index will keep gaining in values and thus this index is likely to keep heading in an upwards market trend. A good stock index trading strategy to trade this Stock Index would be to keep buying and buy the dips.
During Economic Slow-Down and Recession
During the economic slowdown recession times, companies begin reporting slower earnings, slower profits and slower growth projection. It's due to this reason that traders begin to sell stocks of firms that are reporting & announcing lower profits & hence Indices tracking these particular specifed stocks also will begin heading downward.
Hence, during these times, market trends are much more likely to be moving 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 Specs
Margin Requirement Per Lot - $30
Value per Pips - $0.1 dollars
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 & hence as the trader you need to time your trade entry strictly using this trading strategy: Stock strategy & at the same time use appropriate/proper money management guidelines and rules just in case there is more unexpected volatility in the market trend. About index equity management techniques/guidelines courses: What's Stock index money management techniques/guidelines and index equity management methods.
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