What is UsTec100 Trade Strategy? - Learn UsTec100 Stock Index
UsTec100 Chart
UsTec100 chart is displayed & illustrated above. On above example this Stock Index is named USA 100CASH. As a trader you want to find a broker that provides UsTec100 chart so that you as a trader can start to trade it. The example Which is shown above is that one of UsTec100 Indices on MT4 Software.
Strategy to Trading UsTec100 Stock Indices
UsTec100 Indices technique of calculating makes it more volatile & hence there are wider swings in price movement of this Stock Index. The stock index has a weighting component for each Stock Index included on this index. Although this stock index generally moves upward over longterm because USA economy also shows strong growth.
As a trader you want to be biased and keep buying as the index moves upwards. When USA economy is performing good, the stocks that constitute UsTec100 Stock Index will keep gaining in values and thus this index is likely to keep heading in an upwards trend. A good stock index trade strategy to trade this Index would be to keep buying the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, corporations begin to report lower profits & lower growth prospect. It's due to this reason that traders begin to sell stocks of firms that are reporting lower profits and hence 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 index that you are trading.
Contract Specs
Margin Requirement Per Lot - $30
Value per Pips - $0.1 dollars
Note: Even though general trend is generally move upwards, as a trader you've to consider and factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the Indices market pullbackretracement move might also be a substantial one at times and therefore as a trader you need to mark-time your entry precisely using this trading strategy: strategy & at same time use proper equity management guide-lines just in case there's more unexpected volatility in the market trend. About money management methods in indices lessons: What's indices equity management & stock indices money management strategies.
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