What's EURO STOXX 50 System? - Tutorial Guide to Trade EUROSTOXX50 Index
EURO STOXX 50 Trading Chart
EURO STOXX 50 chart is displayed & displayed & shown below. On the exemplification laid-out below this financial instrument is named as EU50CASH. As a trader you want to find a broker that provides EURO STOXX 50 chart so that you as a trader can begin to trade it. The example That is illustrated below is that of EURO STOXX Index on MetaTrader 4 Forex and Software/Platform.
Strategy for EUROSTOXX50 Index
EUROSTOXX 50 is comprised of blue chip stocks choosen from best performing sectors in the EuroZone: hence a good index trade strategy to trade EUROSTOXX 50 is to trade long most of the times. This is because in general the best stocks in Europe will in general keep moving up & up because the firms behind these stocks are the best & most profitable corporations in Europe.
EURO STOXX 50 is also revised every year so that as if a stock isn't doing well then it is replaced with another stock that's doing good. This ensures that most of the times EURO STOXX 50 will keep going and moving up.
As a trader you want to be biased & keep buying as the index moves upward. When European economies are doing well this upwards trend is more than likely to be ruling. A good index trade strategy would be to buy market dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies begin to report lower profits and lower growth prospects. It is because of this reason that investors begin to sell stocks of companies that are reporting lower profits and hence stock index tracking these particular stocks will also start to move downward.
Therefore, during these times, market trends are much more likely to be moving downward & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stock market index that you as a trader are trading.
Contracts and Specifications
Margin Requirement Per 1 Lot - € 40
Value per 1 Pip(Point) - € 0.1
NB: Even though general and overall trend is in general move upward, as a stock indices trader you've got to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement might also be substantial some times and hence as a trader you need to time your entry precisely when using this trade strategy: Stock Index trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market. About money management rules courses: What's index money management & money management methods.
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