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

The DJ30 Trade Chart

The DJ30 trade chart is displayed & illustrated and shown above. On the example above this instrument is named as DJ30CASH. As a trader you want to find a broker that provides DJ30 trade chart so that you can begin to trade it. The stock example shown above is of DJ30 on MT4 Forex & Indices Trading Platform.

Strategy for Trading DJ30 Index

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

As a trader wanting to trade this stock index, be prepared for wider price swing and 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 likely to be ruling. A good trade strategy would be to buy dips.

During Economic Slow-Down & Recession

During economic slow-down & recession times, companies begin to report lower profits & lower business growth prospects. It is because to this reason that investors begin to sell stocks of companies reporting lower profits & therefore index tracking these particular stocks will also start to move downward.

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

Contracts & Specifications

Margin Requirement for 1 Lot - $ 150

Value per 1 Pips - $ 0.5

NB: Even though general trend is generally upward, as a trader you've to factor in daily market volatility, on some days the index might oscillate or even retrace, index market retracement may also be significant at times & therefore as a trader you need to time your entry precisely using this trade strategy: Indices trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in index topics: What is index money management and index money management methods.