What is US100 Trade Strategy? - Tutorial to Trading US100 Stock Index
US100 Stock Index Trade Chart
US100 Stock Index trade chart is shown and portrayed 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 can begin to trade it. The example That is shown above is that of US100 Stock Index on the MetaTrader 4 Forex Software.
Strategy for Trading US100 Stock Index
US100 Stock Index method of calculating makes it more volatile & hence there are more wide swings in the price movement of this stock index. The has a weighting factor for each Stock Index included on this index. Although this stock index in general moves upward over long-term because the America economy also shows strong growth.
As a trader you want to be biased & keep buying as the stock index moves upward. When the America economy is doing well, stocks that makes up US100 Stock Index will keep gaining in values & thus this stock index is likely to keep heading in an upward trend. A good stock index trade strategy to trade this Index would be to buy the dips.
During Economic SlowDown and Recession
During economic slowdown & recession times, firms begin to report lower profits and lower growth prospect. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits and hence the Stock Indices tracking these specified stocks also will begin to move downwards.
Therefore, during these times, trends are likely to be heading downwards 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 Specifications
Margin Required Per One Lot - $ 30
Value per Pips - $ 0.1
NB: Even though general trend is generally moves upward, as a trader you have 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 & pullback, market retracement move might also be a significant one at times & hence as a trader you need to time your trade entry precisely when using this trade strategy: Stock strategy & at same the time use proper money management guidelines just in case there is more unexpected volatility in the market. About Stock indices money management rules courses: What's Stock indices money management & equity management methods.
