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

The AEX 25 Trade Chart

The AEX 25 chart is displayed and illustrated & shown & displayed above. On illustration laid-out above this is named as NETH25CASH. As a trader you want to find a broker that provides AEX 25 Index chart so that as you as a trader can start to trade it. Example displayed and shown above is of AEX-25 on MetaTrader 4 FX Software.

Strategy of Trading AEX 25 Index

AEX25 that keeps track of the market capitalization of the top 25 companies in the Netherlands. This index in general moves upward over the long-term because Netherlands economy also shows stellar economic growth.

As a indexes trader you want to be biased and keep on buying as the index moves and heads upwards. When Dutch economy is doing good most of these top 25 shares/stocks will continue heading and going up & threfore this stock index also will move in an upwards market trend. A good stock index strategy would be to buy the dips.

During Economic Slow-Down and Recession

During economic slow down & recession periods, companies begin reporting lower earnings, lower profits & lower business growth forecasts. It is due to this reason that traders begin & start to sell stocks/shares of companies which are recording lower profits and therefore index tracking these particular stocks will also start to move downwards.

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

Contracts & Details

Margin Requirement per 1 Lot - € 5

Value per 1 Pip(Point) - € 0.1

NB: Even though general and overall trend is in general moves upwards, as a stock index trader you've got to factor in daily market price volatility, on some of the days the index may oscillate or even retrace, market pull back may also be substantial sometimes and therefore you as a trader you need to time your entry strictly using this trading strategy: trading strategy & at the same time use proper and appropriate money management guidelines/rules in case there's more unexpected market volatility. About index equity management guidelines and principles courses: What is stock index equity management and stock index money management strategies.

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