What is SWI-20 Trade Strategy? - Tutorial to Trading SWI 20 Stock Index
The SWI 20 Trade Chart
The SWI 20 chart is displayed and shown & displayed above. On the example above this is named as SWI20CASH. As a trader you want to find a broker that provides SWI 20 chart so that you as a trader can begin to trade it. Example displayed above is of SWI-20 on MetaTrader 4 Forex and Platform.
Strategy of Trading SWI 20 Index
SWI 20 that tracks the market capitalization of top 20 corporations in the Switzerland economy. This stock index generally move upwards over the long term because Swiss economy also shows strong growth. Swiss also has one of the strongest bank system in the globe - making Swiss economy one of the most solid economy.
As a trader you want to be biased & keep buying as the stock index moves upwards. When Swiss economy is performing good most of these top stocks will continue moving up and hence this index will also move in an upward trend. A good stock indices trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that traders start to sell stocks of companies which arereporting lower profits and therefore index tracking these particular stocks will also start to move downward.
Hence, during these times stock index trends are likely to be moving downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stock market index that you are trading.
Contracts and Details
Margin Requirement for 1 Lot - CHF 100
Value per 1Pip - CHF 0.5
NB: Even though general trend is generally move upwards, as a stock indices trader you have to factor in daily market volatility, on some days the stock index might oscillate or even retrace, market pull back may also be substantial at times and therefore as a trader you need to time your trade entry precisely using this strategy: Stock Indices trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market movement. About index equity management rules courses: What is stock index money management & money management strategies.
Get More Lessons and Courses:
- How to Find IT 40 on MetaTrader 5 iPad App
- How Can I Add DJI30 in iPhone MetaTrader 5 App?
- How Can I Start Stock Index Trading?
- JP 225 Trading Strategy Tutorial
- How to Use Trade Charts on MetaTrader 4 Trading Platform Explained
- Best Strategy to Trade AUS200 Tutorial
- How to Add New Stock Indices Order in Tools Menu
- What's GER 30 Stock Index Trade Chart?
- Calculate Value of 1 Pips for SMI 20 Stock Indices
- How Can I Trade SPAIN35 in MetaTrader 5 Software?