How Do You Setup For Stock Indices Trade?

Stock indices are the newly introduced leveraged products for online trading. Traders wanting to begin trading these indices should first of all take time so that as to learn how the markets work. Traders should take time to learn about leverage - leverage is when a trader is given $100 dollars to trade with for every $1 dollar of their own. For illustration, if a trader has capital of $20,000 to begin with, then after getting leverage from their brokers traders will now control $2,000,000 and they can now open positions worth up to $2,000,000 dollars. This is what leverage is, a indices trader gets more money to invest with. This is what makes online stocks indices popular.

However, with leverage a trader has to learn how control this leverage by learning equity management methods. Money management methods will show traders how to control leverage so that they can use this leverage to their advantage & make profits.

Best way to learn about the indices is to open a practice trading account, that way as a trader you'll learn about Index investing without depositing money. The demo account is a practice account where a trader can practice with virtual currency - everything else about the demo account is similar to the real account except for the virtual currency used in a demo account. The demo account will provide beginner traders with access to the real market. A trader can practice with this demo trade account until they are ready to open a live account and begin trading the market with invested capital, where profits can be withdrawn & losses deducted from their capital.

Below is a listing of tutorials containing all the information that beginners require to begin.

1. Introduction to Index

2. Index Trading Instruments

3. Market Hours

How to Start

The first thing that a trader has to do so that as to begin is to download the platform and then install this trade software on their computer so that as to get access to the online market.

Once you have downloaded & installed the platform you'll then open a practice trading account, then you will be ready to start.

The next thing one has to do is to learn the various Stock Index instruments available for online trading. These instruments are:

EUROSTOXX 50
DAX30
DowJones30
FTSE100
Nikkei225
S&P ASX200
FTSEMIB40
S & P 500
NASDAQ 100
CAC40
SMI20
AEX25
HangSeng50
IBEX35

In the online market only the most liked indices are available for online trading, these are the 14 that are displayed above.

Where to Find these Index on Software

As beginner you may want to know where to find these financial instruments on your platform, this is illustrated and illustrated below.

What's Best Index Trade Guide for Index?

Index Instruments on Software/Platform

A trader can find these instruments from the "Market-Watch" window that is illustrated and illustrated above. To find the market watch window popup on the platform above a trader can follow these steps: click "View" next to "File" at the top left corner, from the drop down menu select "Market-Watch", the above Market Watch pop up window will popup displaying a list of these Indices. Alternatively use the key board shortcut keys - CTRL+M.

If some of these instruments aren't shown & displayed on the platform a trader can follow the steps below so as to have these instruments shown on the above market watch window.

Right click within the Market Watch window and then choose "Show All" like as shown below:

What's Best Index Trade Guide for Indices?

Display all Index on Platform Software

You can choose to open charts by selecting a particular Indices & open its chart.

After opening all the financial instruments that you want you may also want to then click "Hide All" such as shown above so that as to hide those instruments that you are not trading and also save internet bandwidth by only streaming the financial instruments that you're trading.

After choosing all the 14 indices just as is shown above you are ready to begin practice trading these instruments on your demo account.

Trade Charts

Index are analyzed using charts, the indices values are plotted on a chart graph & these charts is then traded like a financial instrument for purpose of speculation & making profit.

As an example the US 100 weekly chart is illustrated and shown above. The movement is measured in points. The above stock index current value is 4471.10 - One can buy this financial and trading instrument and if its value appreciates and then goes up to 4471.50, the Stock Index trader will have made a profit of 40 points. A trader can also sell the financial instrument & if the value moves down to 4470.50, the Stock Index trader will have made a profit of 60 points.

For Indices a trader can make money both when the market is moving up or down. When a trader buys this is called going long and when a trader sells this is known as going short.

Brokers

Traders get access to the Online market through brokers. These online brokers are the ones that provide platform softwares, practice demo trade accounts, live accounts, trading charts & all the technical analysis tools required for trading Index.

The brokers charge a small fee for every trade opened which is referred to as the spread. For illustration a online broker might charge 3 points as their spread, henceforth in the above example illustration where profit is 40 points a indices trader would have to also factor three points that are charged for the Stock Index trade by the broker - therefore the profit would be 37 pips after factoring the broker's charges.

How Much Money to Start?

The minimum recommended capital to start trading with is $10,000 dollars. Starting with any amount below this will mean that you'll be undercapitalized. Most traders begin with $10,000, $20,000 or $50,000 dollars, this way they are well capitalized & therefore they have better chances of making profits.

Those traders that begin with less capital are undercapitalized & under capitalization is one of the things that makes most traders not to succeed. Just like all other businesses, if you start any business while undercapitalized chances of the business not succeeding are greater as when compared to when you start a business while having enough capital - the same with online indices trading.

How Do You Use Practice Accounts?

Practice accounts allow traders to practice indices without having to invest or deposit money, this way a trader can learn & decide if indices trading is suitable for them or not. If as a trader once you have practiced & are making profits on your demo account then you as a Stock Index trader can open a real account, deposit money as capital & begin trading these instruments for profits.

The recommended time for practice demo trading account practice is 30 days. These 30 days as a trader you'll continue to learn lessons about indices trading so that as you as a stock indices trader can continue to improve your trading skills while the same time practicing how to trade on the ++33++demopractice--demo.

Technical Analysis & Strategies

The nest thing to do is to make a point of learning the various technical analysis topics used to analyze Indices movements and also strategies used. On this website you'll find all the information about these strategies & technical analysis tutorials required to help you improve your skills so that to increase your knowledge & also your chances of making profits in this online market.

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Trade Forex Trading