What's AEX25 Trade Strategy? - Tutorial to Trade AEX 25 Stock Index

The AEX 25 Trade Chart

The AEX 25 chart is displayed and shown & displayed above. On example above this is named as NETH25CASH. As a trader you want to find a broker that provides AEX 25 chart so that you as a trader can begin to trade it. Example displayed above is of AEX-25 on MetaTrader 4 Forex Software.

Strategy of Trading AEX 25 Index

AEX 25 that tracks the market capitalization of the top 25 companies in the Netherlands. This index generally moves upward over the long term because Netherlands economy also shows strong economic growth.

As a trader you want to be biased and keep buying as the stock index moves upwards. When Dutch economy is performing good most of these top 25 stocks will continue moving up & hence this stock index also will move in an upwards trend. A good indices trade strategy would be to buy the dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies begin to report lower profits & lower business growth prospects. It is due to this reason that traders begin to sell stocks of companies which arereporting lower profits and therefore index tracking these particular stocks will also start to move downward.

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

Contracts & Details

Margin Requirement per 1 Lot - € 5

Value per 1Pip - € 0.1

NB: Even though general trend is generally moves upwards, as a stock index trader you have to factor in daily market volatility, on some days the index might oscillate or even retrace, market pull back may also be substantial at times and therefore as a trader you need to time your trade entry precisely using this trading strategy: trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market movement. About index equity management rules courses: What is stock index equity management and stock index money management methods.

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