What is JP 225 Index Trading Strategy? - How to Trade JP 225 Index - Learn Trading JP 225 Index
The JP 225 Index Chart
The JP 225 Index chart is shown above. On the example above the index is named as JP225CASH. As a trader you want to find an online broker that provides this The JP 225 Index chart so that you can start to trade it. The stock example above is of JP 225 Index on the MetaTrader 4 Forex and Index Trading Platform.
Indices Trading Strategy for JP 225 Stock Index
The JP 225 Index shows the relative movement of the top 225 stocks in Japan. Because this index tracks 225 companies it will be more volatile when compared to an index like the Germany DAX 30 that only tracks 30 companies.
As a Stock indices trader wanting to trade this index, this index is generally more volatile and the trend for this index although generally upwards 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 of the times it is doing well) this upward trend is more likely to be ruling. A good stock index trading strategy would be to buy the dips.
During Economic Slow Down and Recession
During economic slowdown and recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that investors start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also start to move downwards.
Therefore, during these times stock index trends are likely to be heading downwards and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you are trading.
Contracts Specifications
Margin Required Per 1 Lot - JPY 90
Value per 1 Pip - JPY 0.1
Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stock index may oscillate or even retrace, the stock index market retracement may also be significant at times and therefore as a trader you need to time your entry precisely using this strategy: Stock indices trading strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in stock indices trading topics: What is money stock indices management and stock index trading money management methods.
