DJI 30 Industry Average Indices or Dow 30 Stock Index - Wall Street 30 Stock Index
DJI 30 Industry Average Indices or Dow 30 Stock Indices is a market indices that keeps track of 30 of the largest stocks in USA. The stocks that are used to calculate this component are picked from 30 largest firms in USA.
DJI 30 is the most popular & most followed Stock Indices globally. The DJI 30 Industry Average originally tracked performance of Industrial stocks but has changed to include stocks from other sectors of the economy. The main criteria being the stocks chosen are from the largest USA corporations.
DJI 30 is more volatile than most of the other Top Indices, The DJI 30 though will over longterm trend upward it'll have more price retracements and more consolidations than other Stock Indices. Traders may prefer to trade other stock indexes other than the DJI 30 Industry Average if they are more accustomed to trading more stellar trends which are found on other top indices.
DJI 30 Chart
DJI 30 trading chart is displayed & illustrated above. On above example this instrument is named DJI 30CASH. As a trader you want to find a broker that provides DJI 30 trading chart so that you as a trader can start to trade it. The example Which is shown above is that one of DJI 30 Stock Index on MetaTrader 4 FX Trading Platform.
Other Info about DJI 30 Index
Indices Symbol - DJI
The 30 constituent stocks that constitute DJI 30 Stock Index are selected from top performing US corporations. The calculation of this stock index is however different compared to other Stock Indices; the price constituent of the 30 stocks is sub divided by a common divisor so as to come up with this stock index. This makes this index more volatile than others.
Strategy to Trading DJI 30 Stock Index
DJI 30 Stock Index technique of calculating make Dow 30 index more volatile and hence there are wider swings in price movement of this index. Although this stock index generally moves upward over longterm because USA 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 and keep buying as the index moves upwards. When USA economy is performing good (most of the times it's performing good) this upward trend is more likely to be in place. A good stock index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, corporations start 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 & hence Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, trends are likely to be moving downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the index that you are trading.
Contracts and Specs
Margin Requirement Per 1 Lot - $ 150
Value per Pips - $ 0.5
Note: Even though general trend is generally moves upwards, as a trader you've 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 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 & at same time use proper money management guide-lines just in case there's more unexpected volatility in the market trend. About equity management strategies in Stock Indices lessons: What's index equity management & Stock Indices money management methods.
