Trade Forex Trading

What is SMI20 Strategy? - Tutorial Guide to Trading SMI20 Index

What is SMI20 Strategies? - Lesson to Trade SMI20 Stock Index

The SMI20 Index Trade Chart

The SMI20 Stock Index chart is shown and displayed above. On the above example this Index is named SWI20CASH. As a trader you want to find a broker that provides SMI20 Stock Index chart so that you as a trader can begin to trade it. Example displayed and shown above is of SMI20 Stock Index on the MT4 Forex Platform Software.

Strategy for SMI20 Index

SMI20 Index tracks capitalization of top 20 corporations in Switzerland. This Stock Index generally upwards over long-term because the Swiss economy also shows robust growth. Swiss economy also has one of the strongest bank system in the globe - making Swiss economy one of the most reliable and solid economy.

As a index trader you want to be biased & keep on buying as the index heads and moves upward. When the Swiss economy is performing good most of these top stocks will continue heading and going up & therefore this index will also move in an upward market trend. A good stock index trading strategy would be to buy the dips.

During Economic SlowDown and Recession

During economic slow-down & recession times, firms start to report slower revenues, lower profits and lowers growth projections. It's because of this reason that traders begin to sell stocks of companies which are recording lower profits & therefore the 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 are trading.

Contracts & Specifications

Margin Required Per 1 Lot - CHF 100

Value per Pips - CHF 0.5

NB: Even though general trend is in general moves upward, as a trader you've got to consider and factor in the daily market price volatility, on some of the days the Index might oscillate or even retrace & pull back, market retracement move may also be a large one at times & hence you as a trader you need to time your entry precisely using this strategy: Index strategy & at same time use the suitable and appropriate/proper money management rules & guidelines just in case of unexpected volatility in the market movement. About equity management strategies & guidelines in stock indices topics: What is Index equity management & money management system.

Study More Lessons and Tutorials and Courses:

Forex Traders Seminar Gala

Forex Trading Seminar

Indices Broker