What is HANG SENG 50 Strategy? - Lesson to Trade HANGSENG 50 Stock Index
The HANGSENG 50 Trade Chart
HANGSENG 50 chart is shown and displayed above. On above example this Index is named HK 50CASH. As a trader you want to find a broker that provides HANGSENG 50 chart so that as you as a trader can start to trade it. The example Which is shown above is that one of HANGSENG50 Index on the MetaTrader 4 FX and Platform.
Strategy to HANGSENG 50 Stock Index
HANGSENG50 Index tracks capitalization of top 50 firms in Hong Kong. This Index in general moves upwards over long term but it is more volatile in its trend movement. When compared to other indexes such as EURO STOXX & the DAX30 which have lower volatility in their trend movements, this index has wider swings(more volatile swings) in its trend movement.
Over a long period of time this index will in general move upwards, as a trader you want to be biased & keep on buying as the index heads and moves upwards.
A good trading strategy would be to buy the market dips - though as a trader wanting to trade this index, be prepared for much wider swings(more volatile swings) in trading this index.
During Economic SlowDown and Recession
During economic slow-down & recession times, corporations start to report slower revenues and earnings, slower profits and lowers growth projections. It's due to this reason that traders begin to sell stocks of corporations that are recording lower profits & hence the Stock Index tracking these specified stocks will also begin to move downward.
Hence, during these times, market trends are a lot more 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 which you as a trader are trading.
Contracts and Details
Margin Required Per 1Lot - HKD 450
Value per Pips - HKD 1
NB: Even though general trend is in general moves upward, as a trader you've to consider and factor on the daily market price volatility, on some of the days the Indices may move in a range or even retrace and retracement, market pullback/retracement move may also be a substantial one at times & therefore you as a trader you need to time your entry precisely using this strategy: strategy & at the same time use proper and appropriate money management principles and guidelines just in case there's more unexpected market trend volatility. About money management methods/guidelines in indices topics: What's Stock index money management principles and guidelines and money management methods.
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