Trade Stock Indices

What's S and P ASX 200 System? - Tutorial Guide to Trading S and P ASX 200 Index

S&P ASX 200 Strategies How Do I Create Strategies for S&P ASX Guide? - S&PASX200 Strategies Guide Download

ASX 200 Chart

ASX 200 trading chart is displayed & portrayed above. On illustration put on display above this trading instrument is named as AUS200CAS. As a trader you want to find a broker that provides ASX 200 trading chart so that you as a trader can start to trade it. The example shown above is of ASX 200 on MT4 FX and Software/Platform.

Strategy for ASX200 Index

ASX200 will in general move upward because shares prices always move upward over time. This stock index in general moves upward over the long-term because the Australia economy also shows strong and robust growth backed up by their mining sector/industry that has got great reserves of XAUUSD & also other valuable commodities.

As a trader wanting to trade this index, stock index will move upward faster when the Australian economic indicators show accelerated economic growth.

As a Stock trader you want to be biased & keep buying as the stock index moves upward. When Australian 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 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 will also start to move downward.

Therefore, during these times, market trends are likely to be moving downward & 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 Specifications

Margin Requirement Per 1 Lot - AUD 70

Value per 1 Pip(Point) - AUD 0.1

NB: Even though general and overall 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 substantial some times and hence as a trader you need to time your entry precisely when using this trade strategy: trade strategy & at the same time use proper money management principles just in case of more unexpected volatility in the market. About index money management rules courses: What's money management & money management methods.

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