Trade Stock Indices

What is HK 50 Trade Strategy? - Tutorial to Trading HK 50 Stock Index

How Do I Trade the the HK 50 Stock Indices? - What is HK 50 Strategies? Tutorial to Trade HK 50 Index

The HK 50Trade Chart

HK 50 chart is shown & illustrated and shown above. On the example above this is named as HK50CASH. As a trader you want to find a broker that provides HK 50 chart so that you can begin to trade it. The example That is illustrated above is that of HK 50 on MT4 FX & Software Platform.

Strategy for Trading HK 50 Index

HK 50 which keeps track of the capitalization of the top 50 companies in Hong Kong. This stock index in general moves upward over the long-term but it's more volatile in its trend movements. When compared to other stock indices such as EURO STOXX and DAX 30 which have lower volatility in their trend movements, this index has wider swings in its trend movements.

Over a long period of time this stock index will in general moves move upward, as a trader you want to be biased and keep buying as the index moves upward.

A good Stock index trade strategy would be to keep buying the dips - though as a trader wanting to trade this stock index, be prepared for generally much wider swings when it comes to trading this stock index.

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 start to move downward.

Therefore, during these times index 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 - HKD 450

Value per 1Pip - HKD 1

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 index might move in a range or even retrace, index 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: Indices trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About indices money management principles courses: What's index money management & money management strategies.

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