What is US100 Strategy? - Tutorial Guide to US100 Stock Index
US100 Stock Index Trade Chart
US100 Stock Index trade chart is shown & illustrated above. On the above example this Index is named US 100CASH. As a trader you want to find a broker that provides US100 Stock Index trade chart so that you as a trader can begin to trade it. The example That is shown above is that of US100 Stock Index on the MT4 Forex Platform Software.
Strategy for Trading/Transacting US100 Stock Index
US100 Stock Index method of calculating makes it more volatile and hence there are more wide swings in the price movement of this index. The index has got a weighting factor for each Stock Index included on this index. Although this index in general moves upwards over long-term because the America economy also shows strong growth.
As a indices trader you want to be biased and keep on buying as the index heads & moves upwards. When the America economy is doing well, stocks that makes up US100 Stock Index will keep gaining in values & thus this index is likely to keep heading in an upwards market trend. A good stock index trading strategy to trade this Index would be to buy the market dips.
During Economic SlowDown and Recession
During economic slow-down & recession times, corporations start to report slower profits & slower growth projections. It's because of this reason that investors begin to sell stocks of companies that are announcing and recording lower profits and hence the Indices tracking these particular specifed stocks also will begin going downward.
Therefore, during these market times, market trends are much more likely to be heading downwards 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 & Specifications
Margin Required Per 1 Lot - $30 dollars
Value per Pips - $0.1
NB: Even though general trend is generally moves upwards, as a trader you've got to consider and factor in the daily market volatility, on some of the days the Stock Index might move in a range or even retrace and retracement, market retracement move might also be a large one at times & hence you as the trader you need to time your entry precisely when using this strategy: Stock strategy & at same the time use appropriate and proper & suitable money management strategies and guidelines just in case there is unexpected market volatility. About Stock indices money management rules courses: What's Indices money management guidelines/strategies & equity management methods/strategies.
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