What is NETH25 Strategy? - Lesson to Trade NETH25 Index
NETH25 Indices Chart
NETH25 trading chart is illustrated and shown & illustrated above. On the above example this Stock Index is named NETH 25CASH. As a trader you want to find a broker that provides NETH25 chart so that you as a trader can begin to trade it. The Indices example laid-out above is of NETH25 Indices on MT4 FX Platform Software.
Strategy to Trading NETH25 Indices
NETH25 Index tracks the capitalization of top 25 firms in Netherlands. This Stock Index in general moves upwards over long-term because Netherlands economy also shows strong economic growth.
As a stock index trader you want to be biased and keep on buying as the index heads and moves upwards. When Dutch economy is doing well most of these top 25 stocks will continue to move up and threfore this stock index also will move in an upward market trend. A good strategy to trade this index would be to keep buying and buy the dips.
During Economic Slow-Down & Recession
During economic slowdown and recession periods, companies begin and start to report slower profits & lowers growth projection. It is due to and because of this reason that investors start to sell stocks of companies that are announcing lower profits & hence Indices tracking these specified stocks will also start and begin to move downwards.
Therefore, during these times, market trends are much more likely to be moving downward & you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the index which you are trading.
Contracts and Specifications
Margin Requirement Per 1 Lot - € 5
Value per Pips - € 0.1
Note: Even though general and overall trend is generally move upward, as a trader you've got 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 retracement, the Indices market correction/retracement move may also be a significant one at times and therefore you as a trader you need to time your trade entry accurately using this trade strategy & at same the time use proper and suitable money management techniques and guidelines just in case there is more unexpected market volatility. About Stock equity and money management guidelines courses: What's Stock equity money management guidelines/principles & Index equity money management plan.
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