What is DJ30 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 instrument is named as DJ30CASH. As a trader you want to find a broker who offers DJ30 chart so that you as a trader can begin to trade it. The index example illustrated above is that of DJ 30 on MT4 Forex Software.

Strategy for Trading/Transacting DJ30 Index

DJ30 method of calculating make Dow 30 index more volatile & hence there are more wide swings in price movement of this stock index. Although this index in general moves upwards over the long term because USA economy also shows strong and robust growth and is also the largest 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 indexes trader you want to be biased and keep on buying as the index moves and heads upward. When America economic & business environment is doing well and good (majority of the times it is doing well) this upwards trend is much more likely to be the one present. A good stock index trade strategy would be to buy the market dips.

During Economic Slow-Down & Recession

During economic slow down recession periods, companies start reporting slower earnings and revenues, slower profits & lowers growth prospect. It is because of this reason that traders start & begin to sell stocks/shares of companies that are announcing and reporting lower profits & hence index tracking these particular stocks will also start to move downwards.

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

Contracts & Specs

Margin Requirement for 1 Lot/Contract - $150

Value per 1 Pip(Point) - $ 0.5

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

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