What is DowJones 30 Trade Strategy? - Tutorial for Trading Dow Jones 30 Index

The Dow Jones 30 Trade Chart

Dow Jones 30 chart is illustrated and shown & displayed above. On the example above this instrument is referred to as as US30CASH. As a trader you want to find a broker that provides Dow Jones 30 chart so that you as a trader can start to trade it. The example Which is shown above is that one of Dow Jones 30 on MT4 Forex & Software.

Strategy to Trading Dow Jones 30 Stock Index

Dow Jones 30 approach of calculating make Dow 30 index more volatile and hence there are wider swings in price movement of this stock index. Although this index generally moves upwards over the longterm because USA economy also shows strong growth and is also the largest 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 upwards. When USA economy is performing well (most times it's performing good) this upward trend is more likely to be in place. A good stock index trade strategy would be to buy dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, corporations start to report lower profits and lower business growth prospects. It's due to this reason that traders start to sell stocks of corporations that arereporting lower profits and hence stock index tracking these particular stocks also will begin to move downward.

Hence, during these times index trends are likely to be moving 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 & Details

Margin Requirement Per 1 Lot - $150

Value per 1 Pip - $0.5 dollars

NB: Even though general trend is generally moves upwards, as a stock index trader you have to factor in daily market volatility, on some days the index might move in a range or even pullback, market pullbackretracement may also be significant at times and hence as a trader you need to mark-time your entry precisely using this trading strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market trend. About stock index money management guidelines courses: What's stock index money management & index equity management strategies.

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