What is DJI30 Trade System? - Learn DJI30 Stock Index
The DJI30 Chart
DJI30 trading chart is shown & illustrated and shown above. On example above this instrument is named as DJI30CASH. As a trader you want to find a broker that provides DJI30 trading chart so that you can begin to trade it. The example That is shown above is that of DJI30 on MetaTrader 4 Platform.
Trade System for DJI30 Index
DJI30 technique of calculating makes Dow 30 index more volatile & hence there are more wide swings in the price movement of this index. Although this index in general moves upwards over the long-term because American economy also shows strong growth & is also the biggest economy in the world.
As a trader wanting to trade this stock index, be prepared for wider price swing & a little more volatility.
As a trader you want to be biased & keep buying as the index moves upward. When America economy is doing well (most times it is doing well) this upwards trend is more than likely to be ruling. A good stock index trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, firms start to report lower profits & lower business growth prospects. It is because of this reason that investors start to sell stocks of companies that arereporting lower profits & hence index tracking these particular stocks also will begin to move downward.
Therefore, during these times, trends are likely to be moving downwards 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 Specifications
Margin Requirement Per 1 Lot - $150 dollars
Value per 1Pip - $ 0.5
NB: Even though general trend is generally moves upward, 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 retrace, market retracement might also be significant at times and hence as a trader you need to time your trade entry precisely when using this trade strategy: trade strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market. About money management rules in index topics: What's index money management and stock index trading money management methods.
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