What is NIKKEI 225 Strategy? - Guide to Trade NIKKEI 225 Index
NIKKEI 225 Trading Chart
NIKKEI 225 chart is shown and illustrated above. On the example above the stock index is named JP 225CASH. As a trader you want to find an online broker that provides NIKKEI 225 chart so that you can begin to trade it. The Indices example shown above is of NIKKEI 225 Stock Indices on MetaTrader 4 Forex and Stock Indices Software.
Strategy to Trading NIKKEI 225 Stock Indices
NIKKEI 225 Stock Indices represents the relative trend movement of the top 225 stocks in Japan. Because this index tracks 225 firms it will be more volatile when compared to an stock index like Germany DAX30 that only tracks 30 firms.
As a trader wanting to trade this index, this stock index is generally more volatile and the market trend for this index although generally moves upward 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 upwards trend is more than likely to be ruling. A good index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, firms begin to report lower profits and lower growth prospect. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits and hence Stock Indices tracking these specified stocks also will begin to move downward.
Therefore, during these times, market trends are likely to be moving downward and you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.
Contracts & Specs
Margin Requirement Per Lot - JPY 90
Value per Pips - JPY 0.1
Note: Even though general trend is generally move upwards, as a trader you have to consider & factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the Indices market retracement move might also be a substantial one at times & therefore as a trader you need to mark-time your trade entry precisely using this trade strategy: strategy & at same the time use proper equity money management guidelines just in case there is more unexpected volatility in the market. About indices equity management rules courses: What's Stock iindices equity money management and Indices equity management strategies.
