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

The DJ30 Chart

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

Strategy for Trading 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 growth & is also the biggest economy in the world.

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 (most 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 dips.

During Economic Slow-Down and Recession

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

Therefore, during these times, market trends are 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 stock index that you're trading.

Contracts & Specs

Margin Requirement Per 1 Lot - $150

Value per 1Pip - $ 0.5

NB: Even though general trend is generally move upward, as a stock indices trader you have 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 at times and hence as a trader you need to time your trade 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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