Germany DAX30 Index
DAX 30 represents Germany's Market Index of top Blue Chip Stocks. This Index represents the Top 30 Most Liquid Stocks which trade on the Frankfurt Bourse. Because Germany is the largest economy in the Euro-Zone, DAX30 is one of the most liked stock index traded by traders.
Just like fx currencies, Germany DAX30 also has got a trading chart representation and the chart can be traded & analyzed by traders. Traders can place a buy or sell order & trade this index using standard lots.
Germany DAX30 Chart
Germany DAX30 chart is displayed and illustrated above. On the illustration revealed above this financial instrument is named as GER30CASH. As a trader you want to find a broker that provides this Germany DAX30 trading chart so that you as a trader can start to trade it. The example That is displayed above is that of Germany DAX30 on the MetaTrader 4 Forex & Software Platform.
Other Information about the Germany DAX30 Index
Official Index Symbol - DAX:IND or GDAXI30
The 30 component stocks which makes up the Germany DAX30 are revised a few times a year to figure out if to change the composition or not. Stocks which aren't performing well might be replaced with other stocks which are doing well.
Strategy to Trade the Germany DAX30 Index
Germany DAX30 is comprised of blue chip stocks which trade in the Frankfurt Stock Exchange Market picked from best performing sectors in Germany: hence a good strategy to trade the Germany DAX30 is to trade long majority of the times. This is because in general the best stocks in Frankfurt Stock Exchange Market will in general keep heading up & up because the corporations behind these stocks are the best and most lucrative corporations in Germany.
Germany DAX30 is also reviewed a few times a year so that as if a stock isn't doing well then it's replaced with another blue chip stock that's doing good. This ensures that most of the times the Germany DAX30 will keep going and moving up.
As a trader you want to be biased and keep buying as the 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 & recession times, companies begin to report lower profits & lower growth prospect. It is because of this reason which investors begin to sell stocks of corporations reporting lower profits and therefore the index tracking these particular stocks will also start to move downwards.
Therefore, during these times, market trends are likely to be heading downward and as a trader you should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the stock market index that you as a trader are trading.
Contracts and Specs
Margin Required Per 1 Lot - € 85
Value per 1 Pip(Point) - € 0.1
NB: Even though the general and overall trend is in general moves upwards, as a trader you've got to factor in the daily market price volatility, on some days the index might move in a range or even retrace, market retracement may also be significant some times and hence as the trader you need to time your entry strictly using this trade strategy: stock index trading strategy & at same the time use appropriate & appropriate and appropriate/proper money management principles/guidelines in case there is unexpected market volatility. About equity money management rules in index lessons: What's index equity management & stock index equity money management plan.
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