What is DowJones 30 Trade Strategy? - Tutorial for Trading/Transacting DowJones 30 Index

The DowJones 30 Trade Chart

Dow Jones 30 chart is shown and shown & displayed above. On the example above this trading instrument is referred to as 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.

Strategy to DowJones 30 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 in general moves upwards over the longterm because USA economy also shows strong and robust growth and is also the largest economy in the globe.

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 (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 buy 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 start to sell stocks of corporations that are reporting and recording lower profits and hence stock index keeping track & monitoring of these specified stocks will also begin moving & going downward.

Hence, during these times index trends are more likely to be moving & going 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 as a trader are trading.

Contracts & Details

Margin Requirement Per 1 Lot - $150

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 substantial some times and hence as a trader you need to 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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