What is NKY225 Trading Strategy? - Guide to Trading NKY225 Index
The NKY225 Stock Index Trade Chart
The NKY225 chart is displayed & shown above. On above example the index is named NKY 225CASH. As a trader you want to find an online broker that provides NKY225 chart so that you can begin to trade it. Example displayed above is of NKY225 Indices on MT4 FX Trading Platform.
Strategy for Trading NKY225 Stock Indices
The NKY225 Stock Index shows relative movement of the top 225 stocks in Japan. Because this stock index tracks 225 companies it'll be more volatile when compared to an stock index like Germany DAX30 that only tracks 30 companies.
As a trader wanting to trade this index, this stock index is generally more volatile and the trend for this stock index although generally moves upward over a long time it'll have more oscillations than other Stock Indices. 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 upward trend is more likely to be in-favor. A good stock indices trade strategy would be to buy the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies begin to report lower profits & lower growth prospect. It is due to this reason that investors begin to sell stocks of companies which are reporting lower profits & therefore Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, market trends are 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 that you are trading.
Contracts and Details
Margin Requirement Per Lot - JPY 90
Value per Pip - JPY 0.1
Note: Even though general trend is generally moves upward, as a trader you've got to consider & factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the Indices market retracement move might also be a substantial one at times and therefore as a trader you need to time your entry precisely when using this trading strategy: Stock strategy and at same time use proper money management guidelines just in case there's more unexpected volatility in the market movement. About equity money management methods in Indices lessons: What is index equity management and Stock Indices equity management strategies.
