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 monitors 30 of the biggest stocks in USA. The shares which are used in calculating these constituents are chosen and selected from 30 largest corporations in US.

The Dow Jones is the stock market index that is most popular and watched around the world. The Dow Jones Industrial Average used to only follow industrial stocks but now includes stocks from different parts of the economy. The main thing is that the stocks chosen are from the biggest companies in the US.

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 & may 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. You want to search, look for & find a broker who provides Dow Jones 30 chart so that as you can start & begin 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 stocks that make up the DowJones30 are picked from the best companies in the USA. But, the way this index is figured out is different from how other Stock Indices are looked at: the price of the 30 shares is divided by a number so that the index can be found. This makes the stock index change more quickly than others.

Strategy to DowJones30 Index

The Dow Jones 30 method of calculation increases the volatility of the Dow 30 index, resulting in more pronounced price fluctuations within this stock index. Despite this, the index generally trends upward over the long term, reflecting the strong and robust growth of the US economy, which is the largest in the world.

If you're a trader looking to trade this index, be ready for somewhat higher volatility and wider price swings.

An indexes trader wants to be biased and continue purchasing as the index rises and advances. This upward market trend is more than likely to be in place when the US economy is doing well (as it usually is). Buying dips would be a wise course of action when trading stock indices.

During Economic Slow Down & Recession

When the economy slows down, businesses start to report lower income, less profit, and slower growth potential. Because of this, traders begin to sell stocks of companies that are reporting and announcing lower profits, so the stock index that tracks these stocks will also start to go down.

Consequently, during these intervals, market trends are highly likely to move lower, requiring you as a trader to modify your strategy appropriately to match the dominant downward trends of the stocks market index on which you are placing trades.

Contracts & Details

Margin Requirement Per 1 Lot/Contract - $150 dollars

Value per 1 Pip(Point) - $0.5 dollars

Note: Even if the main trend heads up overall, stock index traders must watch daily price swings. Some days, the index may stay flat or dip back. Pullbacks or retraces can be big at times. So, you need to pick your entry point with care using this trading plan. Also, follow good money rules to handle surprise swings in the trend. On money rules for stock indexes: What is index equity control and the equity control plan.

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