What is JP 225 Trade Strategy? - Learn JP 225 Index
JP 225 Chart
JP 225 trading chart is shown and portrayed & shown above. On the above example the index is named as JP225CASH. As a trader you want to find an online broker that provides JP 225 trading chart so that you can start to trade it. ++3 Stock index example above is that of JP 225 on MetaTrader 4 Platform.
Trade Strategy for JP 225 Index
JP 225 represents the relative trend movement of the top 225 stocks in Japan. Because this index tracks 225 firms it will be more volatile when compared to an stock index like Germany DAX 30 that only tracks 30 firms.
As a trader wanting to trade this index, this index is generally more volatile & the market trend for this index although generally moves upward over a long time it will have more oscillations than other stock index. Your strategy should factor in more volatility when trading this index.
When the Japanese economy is doing well (most times it is doing well) this upwards trend is more than likely to be ruling. A good index trade strategy would be to buy the dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, firms begin to report lower profits and lower business growth prospects. It is because of this reason that investors begin to sell stocks of companies that arereporting lower profits and hence stock index tracking these particular stocks also will begin to move downward.
Therefore, during these times, 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 index that you are trading.
Contracts Specifications
Margin Requirement Per 1 Lot - JPY 90
Value per 1Pip - JPY 0.1
NB: Even though general trend is generally move upward, as a trader you've to factor in daily market volatility, on some days the stock index may move in a range or even retrace, 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: trade strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market. About money management rules in stock indexes topics: What's money indices management and stock index trading money management methods.
