What is US100 System? - Learn US100 Stock Index
US 100 Chart
US100 chart is displayed & illustrated above. On above example this Stock Index is named US 100CASH. As a trader you want to find a broker that provides US100 chart so that as you as a trader can start to trade it. The example Which is illustrated above is the one of US 100 Stock Index on MT4.
Strategy to Trading US100 Stock Indices
US100 Stock Indices formula of calculating makes it more volatile & hence there are wider and more volatile swings in the price movement of this Stock Index. The index has got a weighting constituent for each Index included on this stock index. Although this stock index in general moves upwards over long term because US economy also shows strong growth.
As a stock index trader you want to be biased & keep on buying as the index heads & moves upwards. When US economy is performing good, the stocks that constitute US100 Stock Indices will keep gaining in values and thus this stock index is likely to keep heading in an upward trend. A good stock index trading strategy to trade this Stock Index would be to keep buying and buy the dips.
During Economic Slow-Down and Recession
During the economic slowdown & recession times, companies start and begin reporting slower earnings, slower profits and lowers growth projections. It's due to this reason that traders start to sell stocks of firms that are recording and announcing lower profits and hence Indices tracking these specific stocks will also begin heading and going downward.
Hence, during these times, trends are a lot more likely to be heading & going downwards & you as a trader should also adjust your strategy accordingly to suit the prevailing downward trends of the index which you are trading.
Contract Specs
Margin Requirement for 1 Lot - $30 dollars
Value per Pips - $0.1
Note: Even though general and overall trend is generally moves upwards, as a trader you've 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 pullback move might also be a big one at times and hence you as the trader you need to time your trade entry strictly using this trading strategy: Index strategy & at same time use the proper/suitable money management guidelines & principles just in case there is unexpected volatility in the market trend. About stock index money management guidelines and rules courses: What's index equity management and stock index money management methods/strategies.
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