What is DowJones30 Strategy? - Guide to Trading DowJones30 Index
The DowJones30 Stock Indices Trade Chart
The DowJones30 Stock Indices chart is displayed & shown above. On above example this instrument is named US 30CASH. As a trader you want to find a broker that provides DowJones30 trading chart so that you can start to trade it. Example displayed above is of DowJones30 Stock Index on MT4 Forex Software.
Strategy for Trading DowJones30 Stock Indices
The DowJones30 Stock Indices approach of calculating make Dow 30 index more volatile and therefore there are much more wider swings in price movement of this stock index. Although this index generally moves upward over long term because US economy also shows strong growth and is also the largest economy in the world.
As a trader wanting to trade this index, be prepared for wider price swing and a little more volatility.
As a trader you want to be biased & keep buying as the stock index moves upwards. When US economy is performing good (most times it's performing good) this upwards trend is more likely to be in-favor. A good indices trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that investors start to sell stocks of companies which are reporting lower profits and therefore Indices tracking these specified stocks will also start 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 stock index that you're trading.
Contracts and Specifications
Margin Requirement Per Lot - $ 150
Value per Pip - $ 0.5
Note: Even though general trend is generally move upward, as a trader you've got to consider and factor in daily market volatility, on some of the days the Indices might move in a range or even retrace and pull-back, the 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 & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About stock index equity management rules courses: What is index equity management & Indices equity management methods.
