Dow Jones Industrial Average or the Dow 30 - Wall Street 30 Index

Dow Jones Industrial Average or the Dow 30 is a stock market index that tracks 30 of the largest stocks in USA. The stocks which are used in calculating these constituents are chosen and selected from 30 largest corporations in US.

Dow Jones is the most liked & most followed index globally. The Dow Jones Industrial Average originally tracked performance of Industrial stocks but has changed to include stocks from other sectors of the overall economy. Main criteria being the stocks selected are from the largest US companies.

Dow Jones is more volatile than most of the other Top Index, The Dow Jones though will over the longterm trend upwards it'll have more price retracements and more consolidations than other stock index. Traders might prefer to trade other indexes other than Dow Jones Industrial Average if they're more accustomed to trading the more stellar & robust trends which are found in other top indices.

Dow Jones 30 Index - Strategies for DowJones 30 Index

The DowJones30 Trade Chart

Dow Jones 30 chart is illustrated & shown & displayed above. On illustration put on display above this trading instrument is named as US30CASH. As a trader you want to find a broker that provides Dow Jones 30 chart so that as you as a trader can start to trade it. The example Which is displayed above is that of Dow Jones 30 on MT4 Forex Software/Platform.

Other Info about DowJones 30 Index

Official Index Symbol - DJI

The 30 component stocks which make up the DowJones30 are chosen and selected from top performing USA companies. The calculation of this index is however different compared and analyzed to other Stock Indices: the price component of the 30 stocks is sub divided by a common divisor in order and so as to come up with this index. This makes this stock index more volatile than others.

Strategy to DowJones30 Index

Dow Jones 30 approach of calculating make Dow 30 index more volatile & hence there are wider swings(more volatile swings) in the price movement of this stock index. Although this stock index in general moves upward over the long-term because US 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 indices trader you want to be biased & keep on buying as the index moves & heads upwards. When US economy is performing well (majority of the times it's performing good) this upward market trend is more than likely to be in place. A good stock indices trade strategy would be to buy dips.

During Economic Slow-Down & Recession

During economic slow down recession periods, firms begin reporting slower revenues, lower profits & lowers growth prospect. It is because of this reason that traders begin to sell stocks of corporations that are recording and announcing lower profits & hence stock index keeping track and monitoring of these specified stocks will also begin to move downwards.

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

Contracts & Details

Margin Requirement Per 1 Lot - $150 dollars

Value per 1 Pip(Point) - $0.5 dollars

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

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