SMI20 Stock Index
SMI20 Stock Index or Swiss Market Stock Index 20 is a market indices that keeps track of top 20 corporations in Six Swiss Exchange in Switzerland. This 20 stocks illustrated represent the blue chip stocks in the Six Swiss Exchange Market - these are also the most traded stocks in this Stock Index exchange.
SMI20 Chart
SMI20 chart is illustrated & displayed above. On above example this Stock Index is named SWI 20CASH. As a trader you want to find a broker that provides SMI20 chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of SMI20 Stock Index on the MT4 FX and Software.
Other Info about SMI20 Stock Index
Official Index Symbol - SMI:IND
The 20 constituent stocks that make up SMI20 Stock Index are picked from the top firms in France. The 20 stocks make up most of the trade turnover volume in the SIX Swiss Exchange Market. The calculation is reviewed yearly.
Strategy for SMI20 Stock Index
SMI20 Stock Index tracks capitalization of top 20 corporations in Switzerland. This Stock Index generally moves upward over longterm because the Swiss economy also shows strong growth. The Swiss also has one of the strongest bank system in the world - making Swiss economy one of the most reliable economy.
As a trader you want to be biased & keep buying as the stock index moves upwards. When the Swiss economy is performing well most of these top stocks will continue to move up and hence this index will also move in an upward trend. A good index trade strategy would be to keep buying the dips.
During Economic SlowDown & Recession
During economic slowdown & recession times, corporations begin to report lower profits and lower growth prospect. It's due to this reason that traders begin to sell stocks of corporations that are reporting lower profits and hence 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 Details
Margin Required Per 1Lot - CHF 100
Value per Pips - CHF 0.5
NB: Even though general trend is generally upwards, as a trader you've to consider and factor in the daily market volatility, on some of the days the Stock Indices might move in a range or even retrace & pullback, market pullback move might also be a significant one at times and hence as a trader you need to mark-time your entry precisely using this trading strategy: strategy and at same time use proper equity management guide-lines just in case there's more unexpected volatility in the market trend. About equity management methods in indices topics: What's Stock Index equity management and Stock Indices equity management methods.
