What is NKY225 Strategy? - Guide to NKY225 Index

The NKY225 Index Trade Chart

The NKY225 chart is displayed & shown above. On above example the index is named NKY225CASH. As a trader you want to find an online broker that provides NKY225 chart so that you as a trader can begin to trade it. Example displayed and illustrated above is of NKY225 Indices on MT4 Forex Platform Software.

Strategy for Trading NKY225 Indices

The NKY225 Index shows relative movement of the top 225 stocks in Japan. Because this stock index tracks 225 companies it will be more volatile when compared to an stock index like Germany DAX30 that only tracks 30 companies.

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

When the Japanese economy is performing good (most of the times it's performing good) this upwards market trend is more likely to be the one that is currently in place. A good index strategy would be to buy price dips.

During Economic Slow-Down and Recession

During the economic slowdown & recession times, corporations begin and start reporting lower earnings, lower profits & slower growth projection. It is due to this reason that investors begin to sell stocks of companies which are reporting & announcing lower profits & therefore Indices tracking these given stocks also will start to move & go downward.

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

Contracts and Details

Margin Requirement for 1 Lot - JPY 90

Value per Pip - JPY 0.1

Note: Even though general and overall trend is generally moves upward, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Indices may move in a range or even retrace and pull back, the Indices market retracement move might also be a large one at times and therefore you as a trader you need to time your trade entry strictly when using this trading strategy: Stock strategy & at the same time use suitable and proper/appropriate money management principles/guidelines just in case there is more unexpected market volatility. About money management techniques and methods in Indices lessons: What is index equity management and Indices equity management methods/strategies.

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