Nikkei225 Stock Index
Nikkei225 Stock Index is a market indices for the Tokyo Bourse in Japan. This Stock Index tracks the stocks of top 225 companies displayed in the Tokyo Bourse.
The NIKKEI 225 Stock Index Trade Chart
The NIKKEI 225 Stock Index chart is displayed & 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 MetaTrader 4 Forex Trading Software.
Other Information about NIKKEI 225 Stock 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 index is closely followed as an indicator of the prosperity of Japanese businesses. The calculation of this stock 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 Stock 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 upwards trend is more likely to be in-favor. A good indices trade strategy would be to buy dips.
During Economic SlowDown and Recession
During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies which are reporting lower profits and therefore the Stock Indices tracking these specified stocks will also begin to move downwards.
Hence, during these times trends are likely to be heading downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you're trading.
Contracts and Specifications
Margin Required Per One Lot - JPY 90
Value per Pips - JPY 0.1
NB: Even though general trend is generally upwards, as a trader you have to consider & factor in the daily market volatility, on some of the days the Stock Indices may oscillate or even retrace & pullback, market pull back move may also be a significant one at times and therefore as a trader you need to time your trade entry precisely using this strategy: Stock Index strategy and at same time use proper money management rules just in case there's more unexpected volatility in the market movement. About equity management methods in indices topics: What is Stock Index equity management and money management methods.
