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 constituent 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 constituent 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 index more volatile than others.

Strategy to DowJones30 Index

Dow Jones 30 approach of calculating make Dow 30 index more volatile and hence there are wider swings(more volatile swings) in the price movement of this index. Although this stock index in general 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 index trade strategy would be to buy dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, corporations begin to report lower profits & lower growth prospects. 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 downward.

Hence, during these times, market trends are more likely to be moving downward and as a trader you should also adjust your trading 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 pullbackretracement may also be significant some times and therefore as a trader you need to time your entry strictly using this trading strategy: trade strategy and at the same time use proper money management guidelines just in case of more unexpected volatility in the market trend. About money management guidelines in stock index topics: What's index equity management and equity management strategies.

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