What is DJ 30 Index Trading Strategy? - How to Trade DJ 30 Index - Learn Trading DJ 30 Index
The DJ 30 Index Chart
The DJ 30 Index chart is shown above. On the example above this financial instrument is named as DJ30CASH. As a trader you want to find a broker that provides this The DJ 30 Index chart so that you can start to trade it. The stock index example above is of DJ 30 Index on the MetaTrader 4 Forex and Index Trading Platform.
Indices Trading Strategy for DJ 30 Stock Index
The DJ 30 Index method of calculation makes the Dow 30 index more volatile hence there are more wide swings in the price movements of this stock index. Although this index generally moves up over the long term because the American economy also shows strong growth and is also the biggest economy in the world.
As a Stock indices trader wanting to trade this index, be prepared for wider price swing and a little more volatility.
As a Stock indices trader you want to be biased and keep buying as the index moves up. When the USA economy is doing well (most of the times it is doing well) this upward trend is more likely to be ruling. A good strategy would be to buy the dips.
During Economic Slow Down and Recession
During economic slowdown and recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that investors start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also start to move downwards.
Therefore, during these times stock index trends are likely to be heading downwards and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you are trading.
Margin Required Per 1 Lot - $ 150
Value per 1 Pip - $ 0.5
Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stock index may oscillate or even retrace, the stock index market retracement may also be significant at times and therefore as a trader you need to time your entry precisely using this strategy: Stock indices trading strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in stock indices trading topics: What is stock index money management and stock indices trading money management methods.