What is US500 Strategy? - Learn Trading US500 Index
The US500 Chart
The US500 trade chart is displayed and illustrated above. On above example this instrument is named US 500CASH. As a trader you want to find a broker that provides US500 trade chart so that you can begin to trade it. Example displayed above is of US500 Indices on MetaTrader 4 FX TradeTrading Platform.
Trade Strategy for Trading US500 Stock Indices
The US500 Stock Index approach of calculating makes it more volatile and therefore there are much more wider swings in price movement of this Index. Although this stock index generally move upwards over long term because US economy also shows strong growth and is also the largest economy in the world.
As a trader wanting to trade this index, be prepared for wider price swing and a little more volatility.
As a trader you want to be biased & keep buying as the stock index moves upwards. When US economy is performing good (most times it's performing good) this upwards trend is more likely to be in-favor. A good indices trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, companies begin to report lower profits & lower growth prospect. It is due to this reason that investors begin to sell stocks of companies which are reporting lower profits and therefore Indices tracking these specified stocks will also start to move downward.
Hence, during these times, market trends are likely to be moving downward and you as a trader should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock index that you're trading.
Contract Specifications
Margin Requirement Per Lot - $ 12
Value per Pip - $ 0.1
Note: Even though general trend is generally moves upward, as a trader you've got to consider & factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the market retracement move may also be a significant one at times & hence as a trader you need to time your entry precisely when using this trading strategy: Stock strategy & at same time use proper equity management principles just in case there's more unexpected volatility in the market movement. About equity management strategies in stock indices tutorials: What is stock index equity management and stock index money management strategies.
