What is NIKKEI 225 Trade Strategy? - Guide for Trading NIKKEI 225 Stock Index
NIKKEI 225 Chart
NIKKEI 225 chart is shown and displayed above. On above example the stock index is named JP 225CASH. As a trader you want to find an online broker that provides NIKKEI 225 chart so that you as a trader can start to trade it. The example Which is shown above is that one of NIKKEI 225 Index on the MT4 FX and Software.
Strategy to Trading NIKKEI 225 Index
NIKKEI 225 Stock Index represents relative trend movement of top 225 stocks in Japan. Because this stock index tracks 225 corporations it'll be more volatile when compared to an index like the Germany DAX30 that only tracks 30 corporations.
As a trader wanting to trade this index, this stock index is generally more volatile and the trend for this stock index although generally upward over a long time it'll have more oscillations than other Indices. Your strategy should factor in more volatility when trading this index.
When the Japanese economy is performing well (most times it's performing good) this upwards trend is more likely to be in place. A good index trade strategy would be to buy dips.
During Economic SlowDown & Recession
During economic slowdown and 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 Stock Index trends are likely to be heading downward and you as a trader should also adjust your trade strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.
Contracts and Details
Margin Required Per 1Lot - JPY 90
Value per Pips - JPY 0.1
NB: Even though general trend is generally move upwards, as a trader you've to consider and factor in the daily market volatility, on some of the days the Indices might move in a range or even retrace and pullback, 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 and 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 topics: What's Index equity management & equity management strategies.
