What is HANG SENG 50 Trade Strategy? - Tutorial to Trade HANG SENG 50 Stock Index
The HANG SENG 50Trade Chart
HANG SENG 50 chart is shown and displayed above. On above example this Stock Index is named HK 50CASH. As a trader you want to find a broker that provides HANG SENG 50 chart so that you as a trader can start to trade it. The example Which is shown above is that one of HANG SENG 50 Index on the MT4 FX and Software.
Strategy to Trading HANG SENG 50 Stock Index
HANG SENG 50 Stock Index tracks capitalization of top 50 corporations in Hong Kong. This Stock Index generally moves upward over longterm but it is more volatile in its trend movements. When compared to other stock indexes such as EURO STOXX & the DAX30 which have lower volatility in their trend movements, this stock index has wider swings in its trend movements.
Over a long period of time this index will generally moves move upwards, as a trader you want to be biased & keep buying as the stock index moves upward.
A good index trade strategy would be to keep buying the dips - though as a trader wanting to trade this stock index, be prepared for generally much wider swings in trading this index.
During Economic SlowDown and Recession
During economic slowdown & recession times, corporations begin to report lower profits & lower growth prospect. It's due to this reason that traders begin to sell stocks of corporations that are reporting lower profits & hence the Stock Index tracking these specified stocks will also start to move downwards.
Hence, during these times, market trends are likely to be heading downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the index that you are trading.
Contracts & Details
Margin Required Per 1Lot - HKD 450
Value per Pips - HKD 1
NB: Even though general trend is generally moves upwards, as a trader you've to consider and factor in the daily market volatility, on some of the days the Indices may move in a range or even retrace & pullback, market pullbackretracement move may also be a significant one at times & hence 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 topics: What's Stock index money management and money management methods.
