Nikkei225 Index

Nikkei225 Index is a market indices for the Tokyo Bourse in Japan. This Index tracks the stocks of top 225 companies displayed and shown in the Tokyo Stock Exchange Market.

Strategies for Trading/Transacting NIKKEI 225 Index - What is NIKKEI 225?

The NIKKEI 225 Index Trade Chart

The NIKKEI 225 Index chart is illustrated and displayed above. On the above exemplification the index is named JP225CASH. As a trader you want to find an online broker that provides NIKKEI 225 Index chart so that you as a trader can begin to trade it. Example displayed above is of NIKKEI 225 Index on the MT4 Forex Platform Software.

Other Information about NIKKEI 225 Index

Official Symbol - NKY:IND

The 225 components stocks which makes up NIKKEI 225 Index are chosen from the top Japanese corporations. The NIKKEI 225 share stock index is closely followed as an indicator of the prosperity and performance of Japanese businesses. The calculation of this stock index is a simple formula based on the market capitalization.

Strategy of NIKKEI 225 Index

NIKKEI 225 Index shows relative movement of the top 225 stocks in Japan. Because this index tracks 225 companies it'll be more volatile when compared and analyzed to an index like the Germany DAX30 that only tracks 30 companies.

As a trader wanting to trade this Index, this Index is in general more volatile & the market trend for this stock index although generally 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 and doing good (most times it's performing good) this upward trend is more than likely to be the one present. A good stock indices trading strategy would be to buy dips.

During Economic SlowDown & Recession

During economic slowdown and recession times, companies begin to report lower profits & lower growth prospect. It is due to this reason that traders begin to sell stocks of companies which are reporting and recording lower profits & therefore the Index tracking these specified stocks will also start to move downwards.

Hence, during these market times, trends are much more likely to be heading downward & you as a trader should also adjust your trade strategy accordingly to suit the prevailing downwards trends of the index which you are trading.

Contracts & Specifications

Margin Required Per One Lot - JPY 90

Value per Pips - JPY 0.1

NB: Even though general and overall trend is generally moves upwards, as a trader you have to consider and factor in the daily market price volatility, on some of the days the Index might oscillate or even retrace and retracement, market pull back move might also be a big one at times and therefore as the trader you need to time your entry precisely using this strategy: Index strategy & at the same time use proper and appropriate money management techniques and guidelines just in case of more unexpected volatility in the market movement. About equity management rules and guidelines in stock indices trading lessons: What is Index equity management & money management system/plan.

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