What is HK 50 Trade Strategy? - Tutorial to Trading HK 50 Index
The HK 50Trade Chart
HK 50 chart is displayed & illustrated and shown above. On the illustration laid-out above this is named as HK50CASH. As a trader you want to find a broker that provides HK 50 chart so that you as a trader can begin to trade it. The example That is illustrated above is that of HK 50 on MT4 FX & Software Platform.
Strategy for Trading/Transacting 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 indices like EURO STOXX & DAX30 indices which have lower volatility when it pertains to their trend moves, this index has wider and more volatile swings in its trend movements.
Over a long period of time this stock index will in general move up, 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 and buy the dips - though as a trader wanting to trade this stock index, be prepared for much wider swings when it comes to trading this stock index.
During Economic Slow-Down and Recession
During economic slow-down & recession times, companies start to report lower profits & lower 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 1 Pip(Point) - HKD 1
NB: Even though general trend is in general moves upward, as a indices trader you've got to factor in daily price volatility, on some days the index might move in a range or even retrace, index market retracement might also be significant some times and hence as a trader you need to time your entry accurately when using this trade strategy: Stock Index 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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