What is NIKKEI 225 Strategy? - Guide Tutorial for Trading/Transacting NIKKEI 225 Index

NIKKEI 225 Chart

NIKKEI 225 chart is shown & displayed above. On above example the index is named JP 225CASH. As a trader you want to find an online broker that provides NIKKEI 225 chart so that as you as a trader can start to trade it. The example Which is shown above is the one of NIKKEI 225 Index on the MetaTrader 4 FX and Platform.

Strategy to NIKKEI 225 Index

NIKKEI 225 Index represents relative trend movement of the top 225 stocks in Japan. Because this index tracks 225 corporations it-will be more volatile when compared and analyzed to an index like the Germany DAX30 that only tracks 30 corporations.

As a trader wanting to trade this stock index, this index is in general more volatile & the trend for this 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 of the times it's performing good) this upward trend is more than likely to be in place. A good trade strategy would be to buy dips.

During Economic SlowDown & Recession

During economic slow-down and recession times, firms start to report slower profits and lowers growth projection. It's because of this reason that traders begin to sell stocks of corporations that are recording and reporting lower profits & hence the Stock Index tracking these specified stocks will also begin to move downward.

Hence, during these times Index trends are a lot more likely to be heading downward and you as a trader should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the index which you are trading.

Contracts & Details

Margin Required Per 1 Lot - JPY 90

Value per Pips - JPY 0.1

NB: Even though general and overall trend is generally move upward, 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 & retracement, market pullback move might also be a large one at times & therefore you as the trader you need to time your entry strictly using this trading strategy and at same time use the proper & appropriate money management techniques & guidelines just in case there's more unexpected market trend volatility. About equity management methods and guidelines in indices topics: What is Index equity management & equity management system.

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