Trade Stock Indices

What's FTSE100 Trade Strategy? - Guide for Trading/Transacting FTSE 100 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 as 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 FTSE100 Index

FTSE 100 illustrates the relative market movement of the top 1 hundred stocks in UK. In general the share value of the top 1 hundred companies will keep heading upwards, hence this index will also over time keep moving upwards. Should a company not meet required business growth targets, the 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 one moment 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 upwards trend.

As a trader you want to be biased and keep buying as the index moves upwards. When UK economy is performing well (majority of the times it's performing good) this upward 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 growth prospects. It is because of 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(Point) - £ 0.1

NB: Even though general and overall trend is in general move upwards, 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 pull back, market pullbackretracement might also be significant some times & hence as a trader you need to time your entry strictly using this trading strategy: Index 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 and Tutorials:

Forex Seminar Gala

Forex Seminar

Stock Indices Broker