What is SWI-20 Trade Strategy? - Tutorial to Trading SWI 20 Index
The SWI 20 Trade Chart
The SWI 20 chart is displayed and illustrated & shown & displayed above. On the illustration laid-out above this is named as SWI20CASH. As a trader you want to find a broker that provides SWI 20 chart so that as you as a trader can begin to trade it. Example displayed and shown above is of SWI-20 on MetaTrader 4 Forex and Platform.
Strategy of Trading SWI20 Index
SWI20 that keeps track of 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 and robust growth. Swiss economy also has one of the strongest banking system in the world thus making Swiss economy one of the most reliable and solid economy.
As a trader you want to be biased & keep buying as the stock index moves upwards. When Swiss economy is doing good most of these top stocks will continue heading and going up and hence this index will also move in an upwards trend. A good 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 growth prospects. It is due to this reason that traders start to sell stocks of companies which are posting lower profits and therefore index tracking these particular stocks will also start to move downward.
Hence, during these times stock index trends are much more 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 as a trader are trading.
Contracts and Details
Margin Requirement for 1 Lot - CHF 100
Value per 1 Pip(Point) - CHF 0.5
NB: Even though general and overall trend is in general move upwards, as a stock indices trader you've got to factor in daily market volatility, on some days the stock index might oscillate or even retrace, market pull back may also be significant sometimes and therefore as a trader you need to time your entry precisely using this strategy: Index trade strategy & 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.
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