What is DowJones 30 Strategy? - Tutorial Course for Trading/Transacting DowJones 30 Index
The DowJones 30 Trade Chart
Dow Jones 30 chart is shown & displayed above. On the example above this trading instrument is known as as US30CASH. As a trader you want to find a broker that offers Dow Jones 30 chart so that as you as a trader can begin 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 & hence there are wider swings in price movement of this stock index. Although this index in general moves upwards over the long-term because US economy also shows strong and robust growth and is also the biggest 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 indexes trader you want to be biased and keep on buying as the index moves and heads upwards. When USA economy is doing good (majority of the times it is doing well) this upwards trend is much more likely to be in place. A good stock index trade strategy would be to buy dips.
During Economic Slow-Down and Recession
During economic slow down & recession periods, firms start reporting slower earnings and revenues, slower profits and lowers business growth forecast. It is because of this reason that traders start & begin to sell stocks & shares 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 current downwards trends of the stock market index which you as a trader are trading.
Contracts & Details
Margin Requirement for 1 Lot/Contract - $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 of the days the index may move in a range or even pull-back, market pullback/retracement may also be substantial some times and thence as a trader you need to time your entry precisely using this trading strategy: trade strategy & at the same time use the suitable and appropriate/proper money management techniques/guidelines just in case of unexpected volatility in the market trend. About stock index money management guidelines and principles courses: What's stock index money management strategies & guidelines & index equity management system/plan.
Study More Guides:
- Calculate the Size of 1 Pip for SPX500 Index
- What are Nano Stock Index Trading Accounts?
- What's a Indices Pullback Method?
- How Can I Find AS51 Index on MetaTrader 5 App?
- How to Trade SPX500 Tutorial Guide to Trade SPX500 Index
