Trade Stock Indices

What's FTSEMIB 40 Trade Strategy? - Tutorial to Trading FTSE MIB 40 Stock Index

CAC 40 Strategies How to Create Strategies for Trading CAC Guide - CAC Strategies Guide

The FTSE MIB 40 Chart

The FTSE MIB 40 trade chart is displayed & shown & displayed above. On example above this instrument is named as IT40CASH. As a trader you want to find a broker that provides FTSE MIB 40 trade chart so that you as a trader can start to trade it. Example displayed above is of FTSEMIB 40 on MT4 FX Trading Platform.

Strategy of Trading FTSE MIB 40 Stock Index

FTSE MIB 40 index generally moves upward over the long term because stocks choosen represent the best sectors in Italian economy hence in general this stock index will keep moving up over time - because these sectors will be doing booming business.

As a trader wanting to trade this stock index, you want to be more biased toward upward trend direction of this stock index.

As a trader you want to buy as the index moves upwards. When Italian 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 dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies begin to report lower profits and lower business growth prospects. It is due to this reason that traders start 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, market 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 stock index that you're trading.

Contracts & Details

Margin Requirement per 1 Lot - € 250

Value per 1Pip - € 1

Note pips size of the IT40CASH is € 1 compared to the size of other stock indices such as Germany DAX and EURO STOXX whose size of 1 pip per lot is € 0.1 - However, average pips movement for this stock index is much lower as compared to other indices such as DAX 30 & EURO STOXX.

NB: Even though general trend is generally move upwards, as a stock index trader you have to factor in daily market volatility, on some days the stock 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 & at the same time use proper money management principles just in case of more unexpected volatility in the market movement. About index equity management rules courses: What is stock index money management & index equity management methods.

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