What is NKY 225 Trade Strategy? - Learn NKY 225 Index
The NKY 225 Chart
The NKY 225 trade chart is displayed & shown & displayed above. On the above example the stock index is named as NKY225CASH. As a trader you want to find an online broker that provides NKY 225 chart so that you as a trader can begin to trade it. The example shown above is of NKY 225 on MetaTrader 4 Platform Software.
Trade Strategy for NKY 225 Index
NKY 225 represents relative movement of the top 225 stocks in Japan. Because this index tracks 225 companies it'll be more volatile when compared to an stock index like Germany DAX 30 that only tracks 30 companies.
As a trader wanting to trade this index, this stock index is generally more volatile & the market trend for this index although generally moves upward over a long time it'll have more oscillations than other stock index. Your strategy should factor in more volatility when trading this index.
When the Japanese economy is performing good (most times it's performing good) this upward trend is more likely to be in-favor. A good stock indices trade strategy would be to buy 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, market trends are likely to be moving downwards & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.
Contracts Details
Margin Requirement for 1 Lot - JPY 90
Value per 1Pip - JPY 0.1
NB: Even though general trend is generally move upwards, as a trader you've to factor in daily market volatility, on some days the stock index may oscillate or even retrace, market pull back might also be substantial at times and therefore as a trader you need to time your trade entry precisely using this trading strategy: trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market movement. About equity management principles in stock indexes topics: What is trading equity management & stock indexes equity management methods.
