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What is EU 50 Index Trading Strategy? - How to Trade EU 50 Index - Learn Trading EU 50 Index


The EU 50 Index - Trading The EU 50 Index Chart


The EU 50 Index Chart

The EU 50 Index chart is shown below. On the example below this financial instrument is named as EU50CASH. As a trader you want to find a broker that provides this The EU 50 Index chart so that you can start to trade it. The example below is of EU 50 Index on the MetaTrader 4 Forex and Index Trading Platform.



Index Trading Strategy For Trading EU 50 Stock Index

The EU 50 Index is comprised of blue chip stocks picked from the best performing sectors in the Euro Zone; therefore a good strategy to trade the EU 50 Index is to trade long most of the times. This is because in general the best stocks in Europe will generally keep moving up and up because the companies behind these stocks are the best and most profitable companies in Europe.


The EU 50 Index is also revised every year so that if one stock is not doing well then it is replaced with another stock that is doing good. This ensures that most of the times the EU 50 Index will keep going up.


As a Stock indices trader you want to be biased and keep buying as the index moves up. When the European economies are doing well this upward trend is more likely to be ruling. A good stock index trading strategy would be to buy the dips.



During Economic Slow Down and Recession

During economic slowdown and recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that investors start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also start to move downwards.


Therefore, during these times stock index trends are likely to be heading downwards 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 are trading.



Contracts Specifications

Margin Required Per 1 Lot - € 40

Value per 1 Pip - € 0.1


Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stock index may oscillate or even retrace, the stock index market retracement may also be significant at times and therefore as a trader you need to time your entry precisely using this strategy: Stock indices trading strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in stock index trading topics: What is money stock indices management and stock index trading money management methods.

 

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