What's JP225 Trade Strategy? - Learn JP225 Index
JP 225 Chart
JP 225 trading chart is displayed and portrayed 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 as a trader can start to trade it. The stock index example laid-out above is that of JP 225 on MetaTrader 4 Platform.
Trade Strategy for JP225 Index
JP225 represents the relative trend movement of the top 225 stocks in Japan. Because this index tracks 225 companies it will be more volatile when compared to an stock index like Germany DAX30 that only tracks 30 firms.
As a trader wanting to trade this index, this index is in general 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 trading strategy should factor in more volatility when trading this index.
When the Japanese economy is doing well (majority of the 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 market dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies begin to report lower profits and lower 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 market times, the market 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 1 Pip(Point) - JPY 0.1
NB: Even though general trend is in general move upward, as a stock index trader you've got 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 some times and hence as a trader you need to time your 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 & stock index trading money management methods.
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