How Do You Set Up For Indices Trade?

Stock indexes are the newly introduced leveraged products for trading. Traders wanting to begin trading these indices should first of all take time so as to learn how the markets work. Traders should take their time to learn about leverage - leverage is when a trader is given $100 to trade with for every $1 dollar of their own. For illustration, if a trader has capital of $20,000 dollars to start with, then after getting leverage from their brokers traders will now control $2,000,000 & they can now open trade positions worth upto $2,000,000. This is what leverage is, a stock index trader gets more money to invest with. This is what makes online stocks indices popular.

Leverage demands good control through an equity management plan. Money management techniques teach traders to handle leverage wisely. This way, they turn it into profits.

The best way to learn about the indices is to open a demo trade account, that way as a trader you'll learn about index investing without depositing money. The demo account is a practice demo account where a trader can practice with virtual currency - everything else about the demo account is similar to the real/live account except for the virtual currency used in a demo account. The demo account will provide beginner traders with access to the real stock market. One can practice with this demo practice account until they are ready to open a real account & start trading the market with invested capital, where profits can be withdrawn & losses deducted from their capital.

Below is a listing of guides containing all the info that beginner traders require to begin.

One: Introduction to Market Indices

2. Stock Index Instruments

. Times When Markets Are Open

. The Trading Tactic

. System Component

. The Strategic Blueprint

7. Market Sentiments

8. Advantages of Stock Index

9. One of the Best Broker

The above lessons will provide beginners with the best beginning point when it comes to studying. Other tutorials for beginners that can be applied to online indexes are:

Start Stock Index - Index Lessons

How to Start

The first thing that a trader has to do so that as to begin is to download the stock indices platform & then install this platform on their computer so that as to get access to the online market.

After downloading and installing the trading platform, you'll need to open a demo account. Once done, you'll be prepared to begin trading.

10: The 'Help' function, to be used if you are unsure about any element of MT5, allows you to click on any MT5 object to receive an explanatory description.

EURO STOXX 50
DAX 30
Dow Jones 30
FTSE 100
Nikkei 225
S&P ASX 200
FTSE MIB 40
S & P 500
NASDAQ 100
CAC 40
SMI 20
AEX 25
Hang Seng 50
IBEX 35

In the online stock market, only the most popular indices can be traded, including the 14 listed above.

Where to Find these Index on the Trading Platform

As beginner you might want to know where to find these financial instruments in your platform, this is displayed and shown below.

How Do You Set Up For Online Trading? - How to Trade Index Tutorial

Stock Index Instruments on Software

A trader can find these instruments from the "Market-Watch" window that's displayed and shown above. To find the market-watch pop up window on the platform above a trader can follow these steps: click 'View' next to 'File' at the top left corner, from the drop down menu choose "Market-Watch", above Market-Watch window pop-up will appear displaying a list of these stock index. Alternatively use the key-board short cut keys - CTRL+M.

If some tools do not appear on the platform, a trader can use the steps below. This will show them in the market watch window.

Right click within the Market-Watch window & then choose 'Show All' as is illustrated/shown below:

How to Set Up For Online Index - How to Trade Stock Index Tutorial

Display all Index on Software

You can then choose to open charts by choosing a particular index & open its chart.

After opening all the selected instruments, you might want to click 'Hide All', as demonstrated above. This action hides instruments you are not trading and conserves internet bandwidth by focusing only on the real-time financial trading instruments you're actively trading.

Once you pick all 14 indices like those listed, you can start practicing trades on them in a demo account.

Trading Charts

Stock indices are analyzed via charting, where index values are graphed and subsequently traded like financial instruments for speculative purposes and profit generation.

As an example the US100 weekly trade chart is displayed and shown above. The movement is measured in points. The above index current value is 4471.10 - One can buy this trading instrument & if the value then appreciates to 4471.50, trader will have made a profit of 40 points. One can also sell the instrument and if the value moves down to 4470.50, trader will have earned a profit of 60 points.

For index a trader can make money both when the market is moving up or down. When a trader buys this is called going long & when a trader sells this is referred to as going short.

Brokers

Traders access online markets through brokers who provide essential tools such as trading platforms, demo accounts, real accounts, trade charts, and technical analysis resources needed for effective index trading.

Brokers charge a small fee, called the spread, for each trade. For example, a broker might charge 3 points as their spread. So, if a stock index trader makes 40 points in profit, they also have to subtract the 3 points the broker charges, leaving them with a profit of 37 points after the broker's fees.

How Much Money to Start?

$10,000 is the minimum capital recommended for starting trading. Any amount less than this will result in insufficient funding for your business. By starting with $10,000, $20,000, or $50,000, most traders are well-funded and have a greater opportunity to make a profit.

Those traders that begin with less capital are undercapitalized and under capitalization is one of the things that makes most traders not to succeed. Just like all other businesses, if you begin any business while undercapitalized chances of the business not succeeding are greater as when compared to when you begin a business while having enough capital - the same with online trading.

How to Use Practice Accounts

Demo accounts let traders test trades without putting in real cash. This helps them learn and see if index trading fits their style. Once practice brings steady wins, a trader can switch to a real account. They add funds as starting money and trade these tools for gains.

It's best to practice with a demo account for 30 days. During these 30 days, you'll keep learning about stock trading so you can get better and practice trading using the demo account.

Technical Analysis and Strategies

The nest thing to do is to make a point of learning the various technical analysis topics used to analyze stock index movements & also strategies used. On this site you will find all the info about these strategies & technical analysis tutorials required to help you improve your skills so as to increase your knowledge and also your chances of making profits in this online stock market.

Get More Tutorials and Lessons & Courses:

Trade Stock Indices