Trade Stock Indices

What is DJ-30 Trade Strategy? - Tutorial to Trading DJ30 Index

How Do I Trade the DJ30 Stock Index? - Tutorial for Trading DJ30 Index

The DJ30 Chart

DJ30 trading chart is shown and portrayed & shown above. On the example above this instrument is referred to as as DJ30CASH. As a trader you want to find a broker that provides DJ30 trading chart so that you can start to trade it. Index example illustrated above is that of DJ30 on MT4 FX and Indices Platform.

Strategy for Trading DJ30 Stock Index

DJ30 technique of calculating make Dow 30 stock index more volatile and hence there are more wide swings in the price movement of this stock index. Although this index in general moves upward over the long-term because American economy also shows strong growth and is also the biggest economy in the world.

As a trader wanting to trade this index, be prepared for wider price swing and a little more volatility.

As a trader you want to be biased and keep buying as the stock index moves upward. When America economy is doing well (most of the times it is doing well) this upward 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 will also 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 & Specs

Margin Requirement Per 1 Lot - $150

Value per 1Pip - $ 0.5

NB: Even though general trend is generally move 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: Stock Indices 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 stock index lessons: What's money management & equity management methods.

Learn More Tutorials and Lessons:

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