SMI 20 Index
SMI 20 or Swiss Market Stock Index 20 is a stock market stock index that keeps track of the top 20 firms in Six Swiss Exchange in Switzerland. This 20 stocks shown represent the blue chip stocks in Six Swiss Exchange Market - these are also the most liquid stocks in this bourse.
SMI 20 Chart
SMI 20 trading chart is shown and portrayed & shown above. On the example above this is named as SWI20CASH. As a trader you want to find a broker that provides SMI 20 chart so that you can begin to trade it. The example That is illustrated above is that of SMI 20 on MT4 FX and Platform Software.
Other Information about SMI 20 Stock Index
Official Indices Symbol - SMI:IND
The 20 component stocks that make up the SMI 20 are selected from top companies in France. The 20 stocks make up most of the total trading turnover volume in the SIX Swiss Exchange Market. The calculation is revised yearly.
Strategy for Trading SMI 20 Stock Index
SMI 20 tracks capitalization of the top 20 firms in Switzerland. This stock index in general moves upward over the long-term because Swiss economy also shows strong growth. The Swiss also has one of the strongest banking system in the world - making the Swiss economy one of the most reliable economy.
As a trader you want to be biased & keep buying as the index moves upward. When Swiss economy is doing well most of these top stocks will continue to move up and therefore this index will also move in an upward trend. A good stock index trade strategy would be to keep buying 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, 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 are trading.
Contracts and Specs
Margin Requirement Per 1 Lot - CHF 100
Value per 1Pip - CHF 0.5
NB: Even though general trend is generally moves upward, as a trader you've to factor in daily market volatility, on some days the index might move in a range or even retrace, market retracement may also be significant at times & therefore as a trader you need to time your trade entry precisely when using this trade strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About equity management principles in index topics: What's index money management and index money management strategies.
