What is DJ30 Trade Strategy? - Guide for Trading/Transacting DJ30 Index

The DJ30 Chart

DJ30 trading chart is displayed and portrayed above. On example put on display above this trading instrument is named as DJ30CASH. As a trader you want to find a broker that provides DJ30 chart so that you as a trader can begin to trade it. The stock index example illustrated above is that of DJ30 on MT4 Forex Software.

Strategy for Trading/Transacting DJ30 Index

DJ30 technique of calculating make Dow 30 stock index more volatile and hence there are more wide swings in the price movement of this stock index. Although this index in general moves upwards over the long-term because American economy also shows strong and robust growth & is also the biggest economy in the globe.

As a trader wanting to trade this stock index, be prepared for wider price swing and a little more volatility.

As a trader you want to be biased and keep buying as the stock index moves upward. When America economy is doing well (majority of the times it is doing well) this upwards trend is more than likely to be ruling. A good stock index trade strategy would be to buy the market dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, companies start to report lower profits & lower growth prospects. It is because of this reason that investors start to sell stocks of companies that are announcing and reporting lower profits & hence index tracking these particular stocks will also start to move downward.

Therefore, during these times, market trends are a lot more likely to be moving downward & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market index that you're trading.

Contracts & Specs

Margin Requirement Per 1 Lot - $150

Value per 1 Pip(Point) - $ 0.5

NB: Even though general trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement might also be significant some times and hence as a trader you need to time your entry precisely when using this trade strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About equity management principles in index topics: What's equity management and equity management methods.

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