Nikkei225 Index

Nikkei225 Index is a market indexes for the Tokyo Bourse in Japan. This Index tracks the shares & stocks of top 225 corporations 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 shown and shown above. On the above exemplification the index is named JP225CASH. As a trader you want to find an online broker that offers NIKKEI 225 Index chart so that you as a trader can start to trade it. Example displayed above is of NIKKEI 225 Index on the MT4 Forex Platform Software.

Other Data 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 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 shares & stocks in Japan. Because this index keeps track of 225 corporations it will be more volatile when compared and analyzed to an index like the Germany DAX30 that only monitors 30 companies.

As a trader wanting to trade this Index, this Index is in general more volatile and the trend for this index although generally upwards over a long time it will have more oscillations than other Index. Your strategy should factor in more volatility when trading this stock index.

When the Japanese economy is performing and doing good (most times it is performing well) this upwards 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 slow-down and recession times, firms start to report slower revenues, lower profits and lowers growth projections. It's because of this reason that traders start to sell shares of companies which are reporting and recording lower profits & therefore the Index tracking these specified stocks will also begin to move downward.

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

Contracts and Specifications

Margin Required Per One Lot - JPY 90

Value per Pips - JPY 0.1

NB: Even though general and overall trend is generally moves upward, as a trader you've got to consider and factor in the daily market price volatility, on some of the days the Index may oscillate or even retrace & retracement, market pull back move might also be a big one at times & 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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