What is US 500 Strategy? - Learn US500 Index

The US500 Chart

The US500 trade chart is displayed and illustrated above. On the above example illustration this financial instrument is named USA 500CASH. As a trader you want to find a broker that provides US500 trade chart so that you as a trader can begin to trade it. Example displayed and illustrated above is of US500 Indices on MT4 Forex TradeTrading Platform.

Trade Strategy for Trading US500 Stock Indices

The US500 Stock Index approach of calculation makes it more volatile & therefore there are much wider swings(more volatile swings) in the price movement of this Index. Although this stock index generally move upwards over long-term because US economy also shows strong growth & is also the biggest economy in the world.

As a trader wanting to trade this stock index, be prepared for wider price swing and a little more volatility.

As a stock index trader you want to be biased & keep on buying as the index heads & moves upwards. When US economy is performing good (most times it's performing good) this upward trend is much more likely to be the one ruling. A good stock indices strategy would be to buy price dips.

During Economic Slow-Down and Recession

During economic slowdown & recession periods, corporations begin to report lower revenues, lower profits & lowers growth projections. It is due to and because of this reason that investors begin to sell stocks of companies which are reporting & posting lower profits and therefore Indices tracking these specified stocks will also start and begin to move downwards.

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

Contract Specifications

Margin Requirement Per Lot - $ 12

Value per Pip - $0.1 dollars

Note: Even though general and overall trend is generally moves upward, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Indices may move in a range or even retrace and pull back, the market correction/retracement move may also be a significant one at times & therefore as a trader you need to time your trade entry strictly when using this trading strategy: Stock strategy & at same time use the appropriate and proper & suitable money management principles/guidelines just in case there's more unexpected market volatility. About equity management guidelines/methods in stock indices tutorials: What is stock index equity management & stock index money management plan/system.

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