What is DJ-30 Strategy? - Guide to Trading DJ30 Index

The DJ30 Chart
DJ30 chart is displayed and portrayed above. On the example shown above this trading instrument is referred to & known as as DJ30CASH. As a trader you want to find a broker that provides DJ 30 trading chart so that you as a trader can start & begin to trade it. Index example shown above is that of DJ 30 on MT4 FX and Indices Platform.
Strategy for Trading/Transacting DJ30 Index
DJ30 method of calculating make Dow 30 index more volatile & therefore there are more wide swings in price movement of this stock index. Although this index in general moves upward over the long-term because USA economy also shows strong and robust growth and is also the largest economy in the globe.
As a trader wanting to trade this index, be prepared for wider price swing and a little more volatility.
As a indexes trader you want to be biased and keep on buying as the index moves and heads upward. When America economic & business environment is doing well and good (most of the times it is doing well) this upward market trend is much more likely to be the one that is ongoing. A good stock index trade strategy would be to buy the market dips.
During Economic Slow-Down & Recession
During economic slow down recession periods, companies start reporting slower earnings and revenues, slower profits & lowers growth prospect. It is because of this reason that traders start & begin to sell stocks/shares of companies that are reporting & posting lower profits & hence index tracking these particular stocks will also start to head & go downward.
Therefore, during these market times, the market trends are more likely to be moving and heading downwards and as a trader you should also try and adjust your strategy accordingly to fit the current downward trends of the stock index that you are trading.
Contracts & Specs
Margin Requirement for 1 Lot/Contract - $150
Value per 1 Pip(Point) - $ 0.5
NB: Even though general trend is in general move upwards, as a stock indices trader you've got to factor in daily market volatility, on some days the index may move in a range or even retrace, market retracement might & may also be significant some times and thence you as the trader you need to time your entry precisely when using this trade strategy: Index trade strategy and at the same time use proper/appropriate money management techniques and guidelines in case there's more unexpected volatility in the market. About money management guidelines in index lessons: What's money management methods and guidelines & equity management plan/system.
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- What's Margin Requirement for 1 Lot/Contract of DJI 30 Index?


