Germany DAX 30 Stock Index
DAX 30 represents Germany's Market Stock Index of top Blue Chip Stocks. This Index represents the Top 30 Most Liquid Stocks that trade on the Frankfurt Bourse. Because Germany is the biggest economy in the EuroZone, DAX 30 is one of the most popular traded by online traders.
Just like forex currencies, Germany DAX 30 also has a trading chart representation and the chart can be traded and analyzed by traders. Traders can place a buy or sell order & trade this index using standard lots.
Germany DAX 30 Trading Chart
Germany DAX 30 trading chart is shown and shown above. On the example above this financial instrument is named as GER30CASH. As a trader you want to find a broker that provides this Germany DAX 30 trading chart so that you can begin to trade it. The example That is shown above is that of Germany DAX 30 on the MT4 FX and Platform Software.
Other Information about the Germany DAX 30 Index
Official Indices Symbol - DAX:IND or GDAXI
The 30 component stocks that makes up the Germany DAX 30 are revised a few times a year to determine if to change the composition or not. Stocks that are not performing well might be replaced with other stocks that are doing well.
Strategy to Trading the Germany DAX 30 Index
Germany DAX 30 is comprised of blue chip stocks that trade in the Frankfurt Bourse picked from best performing sectors in Germany; hence a good strategy to trade the Germany DAX 30 is to trade long most times. This is because in general the best stocks in Frankfurt Bourse will generally keep heading up & up because the companies behind these stocks are the best & most lucrative companies in Germany.
Germany DAX 30 is also reviewed a few times a year so that if a stock is not doing well then it's replaced with another blue chip stock that's doing good. This ensures that most of the times the Germany DAX 30 will keep going up.
As a trader you want to be biased and keep buying as the stock index moves up. When the German economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good stock index trade strategy would be to buy dips.
During Economic SlowDown and Recession
During economic slowdown and recession times, firms begin to report lower profits and lower growth prospect. It is because of this reason that investors begin to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also begin to move downwards.
Therefore, during these times trends are likely to be heading downward and as a trader you should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock market index that you are trading.
Contracts & Specs
Margin Required Per One Lot - € 85
Value per 1Pip - € 0.1
NB: 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 might move in a range or even retrace, market retracement might also be significant at times and therefore as a trader you need to mark-time your trade entry precisely using this trade strategy: index trading strategy and at same the time use proper money management rules just in case of more unexpected volatility in the market. About money management rules in index topics: What's stock index money management & stock index money management methods.
