The Nikkei225 Index is a stock market indices for the Tokyo Stock Exchange in Japan. This stock index tracks the stocks of the top 225 companies listed in the Tokyo Stock Exchange.
The NIKKEI 225 Index Chart
The NIKKEI 225 Index chart is shown above. On the example above the index is named as JP 225CASH. As a trader you want to find an online broker that provides this The NIKKEI 225 Index chart so that you can start to trade it. The stock indices example above is of NIKKEI 225 Stock Indices on the MT4 Forex and Indices Trading Platform.
Other Information about NIKKEI 225 Index
Official Symbol - NKY:IND
The 225 component stocks that make up the NIKKEI 225 Index are picked from the top Japanese companies. The NIKKEI 225 share 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 for Trading NIKKEI 225 Index
The NIKKEI 225 Index shows the relative movement of the top 225 stocks in Japan. Because this index tracks 225 companies it will be more volatile when compared to an index like the Germany DAX30 that only tracks 30 companies.
As a trader wanting to trade this stock indices, this stock indices is generally more volatile and the market trend for this index although generally upwards over a long time it will have more oscillations than other stock indices. Your strategy should factor in more volatility when trading this index.
When the Japanese economy is doing well (most of the times it is doing well) this upward trend is more likely to be ruling. A good stock indices trading strategy would be to buy the dips.
During Economic Slow Down and Recession
During economic slowdown and recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that investors start to sell stocks of companies reporting lower profits and therefore the stock indices tracking these particular stocks will also start to move downwards.
Therefore, during these times stock indices trends are likely to be heading downwards and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you are trading.
Contracts and Specifications
Margin Required Per 1 Lot - JPY 90
Value per 1 Pip - JPY 0.1
Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stock indices may oscillate or even retrace, the stock indices market retracement may also be significant at times and therefore as a trader you need to time your entry precisely using this strategy: Stock indices trading strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in stock indices trading topics: What is stock indices money management and stock indices money management methods.