What is SMI20 Strategy? - Course for SMI20 Index

The SMI20 Trade Chart

The SMI20 chart is displayed & shown above. On above example this Index is named SWI20CASH. As a trader you want to find a broker that provides SMI20 trade chart so that you as a trader can start to trade it. Example displayed and illustrated above is of SMI20 Stock Index on MetaTrader 4 FX & Index Platform.

Strategy for SMI20 Stock Indices

The SMI20 Stock Index tracks the capitalization of top 20 companies in Switzerland. This Index in general moves upward over long-term because the Swiss economy also shows strong growth. The Switzerland economy also has one of the strongest banking system in the world - making the Switzerland economy one of the most solid economy.

As a stock index trader you want to be biased and keep on buying as the index heads & moves upwards. When Swiss economy is performing good most of these top stocks will continue going upwards and hence this stock market index also will head in an upwards market trend. A good stock index strategy would be to buy price dips.

During Economic Slow-Down & Recession

During economic slowdown and recession times, corporations start and begin reporting slower revenues, slower profits and lowers growth projections. It is due to this reason that investors start to sell stocks of companies which are announcing & reporting lower profits and therefore Indices tracking these specified stocks will also start and begin to move downwards.

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

Contracts and Specifications

Margin Requirement Per 1 Lot - CHF 100

Value per Pip - CHF 0.5

Note: Even though general and overall trend is generally move upwards, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Indices might move in a range or even retrace & retracement, the market retracement move might also be a big one at times and therefore you as the trader you need to time your trade entry accurately when using this strategy: indices strategy & at same time use the suitable & suitable/proper money management principles and guidelines just in case of more unexpected market volatility. About stock index money management guidelines & methods courses: What is Index equity management and Index money management plan.

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