Nikkei225 Stock Index

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

Strategies for Trading NIKKEI 225 Stock Indices - What is NIKKEI 225?

The NIKKEI 225 Index Trade Chart

The NIKKEI 225 Stock Index chart is shown & displayed above. On the above example the index is named JP 225CASH. As a trader you want to find an online broker that provides NIKKEI 225 Stock Index chart so that you as a trader can begin to trade it. Example displayed above is of NIKKEI 225 Stock Index on the MT4 Forex Software.

Other Information about NIKKEI 225 Index

Official Symbol - NKY:IND

The 225 components stocks which makes up NIKKEI 225 Stock Index are chosen from the top Japanese corporations. The NIKKEI 225 share stock 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 of Trading NIKKEI 225 Stock Index

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

As a trader wanting to trade this Index, this Stock Index is generally 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 good (most times it's performing good) this upward trend is more likely to be in-favor. A good stock indices trade 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 lower profits & therefore the Stock Index tracking these specified stocks will also start to move downwards.

Hence, during these times, trends are 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 that you are trading.

Contracts & Specifications

Margin Required Per One Lot - JPY 90

Value per Pips - JPY 0.1

NB: Even though general trend is generally moves upwards, as a trader you have to consider and factor in the daily market volatility, on some of the days the Stock Index might oscillate or even retrace and pullback, market pull back move might also be a substantial one at times and hence as a trader you need to time your trade entry precisely using this strategy: Stock Index strategy & at same time use proper money management rules just in case there's more unexpected volatility in the market movement. About equity management strategies in stock indices lessons: What is Stock Index equity management & money management strategies.

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