What is DJI-30 Trade Strategy? - Learn Trading DJI30 Index
The DJI30 Trade Chart
DJI30 chart is shown and shown & displayed above. On the example shown above this trading instrument is referred to as as DJI30CASH. As a trader you want to find a broker that provides DJI30 chart so that as you as a trader can start to trade it. The stock indices illustration shown above is of DJI30 on MetaTrader 4 Software.
Trade Strategy for DJI30 Index
DJI30 approach of calculating makes Dow 30 index more volatile and hence there are wider swings in the price movement of this index. Although this stock index generally moves upward over the longterm because USA economy also shows strong and robust growth & is also the largest economy in the globe.
As a trader wanting to trade this index, be prepared for wider price swing & a little more volatility.
As a trader you want to be biased & keep buying as the stock index moves upwards. When USA economy is performing well (majority of the times it's performing good) this upward trend is more likely to be in place. A good stock index trade strategy would be to keep buying and buy the market dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, corporations start to report lower profits and lower growth prospects. It is because of this reason that traders begin to sell stocks of corporations that are posting & reporting lower profits & hence stock index keeping track of these specified stocks will also begin to go downwards.
Hence, during these market times, the market trends are a lot more likely to be heading and moviing downwards & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.
Contracts Specs
Margin Requirement Per 1 Lot - $150 dollars
Value per 1 Pip(Point) - $0.5 dollars
NB: Even though general trend is in general move upwards, as a stock index trader you've got to factor in daily market volatility, on some days the stock index may move in a range or even pull-back, market pullback might also be significant some times & therefore as a trader you need to time your entry precisely using this trading strategy: trade strategy & at the same time use proper and suitable money management guidelines/principles just in case of unexpected volatility in the market trend. About equity management guidelines/techniques in indexes trading topics: What's index equity management & stock indexes trading money management strategies/methods.
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