Trade Stock Indices

What's FTSE100 Trade Strategy? - Guide for Trading FTSE 100 Stock Index

FTSE 100 Strategies Guide Download - FTSE Strategies Guide Tutorial

FTSE 100 Chart

FTSE 100 chart is illustrated & shown & displayed above. On above example the index is named as UK100CASH. As a trader you want to find an online broker that provides FTSE 100 chart so that you as a trader can begin to trade it. The example shown above is of FTSE 100 on MetaTrader 4 FX and Software.

Strategy to Trading FTSE 100 Index

FTSE 100 illustrates the relative market movement of the top 100 stocks in UK. In general the share value of the top 100 companies will keep heading upwards, hence this index will also over time keep moving upwards. Should a company not meet the required growth targets, company will be removed from the index and replaced with an alternative company that has better growth prospects.

As a trader wanting to trade this index, general direction at any given time will be more bullish than bearish. This is because as long as the 100 companies being tracked are doing booming business, then their share value will keep heading upward, & hence this stock index will also keep moving in an upward trend.

As a trader you want to be biased and keep buying as the index moves upwards. When UK economy is performing well (most times it's performing good) this upwards trend is more likely to be in place. A good index trade strategy would be to buy dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, corporations begin 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 index tracking these particular stocks will also start to move downward.

Hence, during these times, market trends are likely to be moving downward and as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.

Contracts & Details

Margin Requirement Per 1 Lot - £ 70

Value per 1 Pip - £ 0.1

NB: Even though general trend is generally move upwards, as a stock indices trader you have to factor in daily market volatility, on some days the stock index may move in a range or even pullback, market pullbackretracement might also be significant at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: Stock Indices 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.

Get More Courses & Tutorials:

Forex Seminar Gala

Forex Seminar

Stock Indices Broker