JP 225 Index

JP 225 is a stocks market index for Tokyo Stock Exchange Market in Japan. This index tracks shares of the top 225 companies illustrated on Tokyo Stock Exchange Market.

Strategies for JP225 Index

JP 225 Chart

JP 225 chart is shown & shown above. On above example the index is named as JP225CASH. As a trader you want to find an online broker that offers JP225 chart so that as you as a trader can begin to trade it. Stock index example shown above is that of JP 225 on MT4 Forex Software.

Other Info about JP225 Index

Index Symbol - NKY:IND

The 225 constituent/component stocks which make up the JP 225 are chosen from the top performing Japanese firms. The JP 225 share stock index is closely followed as an indicator of the prosperity of Japanese businesses. The calculation of this index is a simple formula that is based on the market capitalization.

Strategy to Trading JP225 Index

JP225 shows relative trend movement of the top 225 shares & stocks in Japan. Because this stock index tracks 225 companies it-will be more volatile when compared to an index like Germany DAX30 that only tracks 30 corporations.

As a trader wanting to trade this index, this stock index is in general more volatile and the trend for this stock index although generally moves upward over a long time it will have more oscillations than other stock index. Your strategy should factor in more volatility when trading this index.

When Japanese economy is performing well (majority of the times it is doing well) this upwards trend is more than likely to be in place. A good strategy to trade this stock index would be to buy dips.

During Economic Slow-Down & Recession

During economic slow down & recession periods, firms start reporting slower earnings and revenues, slower profits and lowers business growth forecast. It is because of this reason that traders start & begin to sell stocks & shares of corporations that are posting & recording lower profits and hence index tracking these particular stocks will also start to move downwards.

Hence, during these times stock index trends are more likely to be going and moving downwards and as a trader you should also adjust your trading strategy accordingly to fit the current downwards trends of the stocks market index that you are trading.

Contracts & Details

Margin Requirement for 1 Lot/Contract - JPY 90

Value per 1 Pip(Point) - JPY 0.1

NB: Even though general trend is in general moves upwards, as a stock indices trader you've got to factor in daily market volatility, on some days the index might move in a range or even pull-back, market pullback might also be significant some times & hence as a trader you need to time your entry precisely using this trading strategy: trade strategy & at the same time use the proper/suitable money management guidelines and strategies in case there is unexpected market trend volatility. About equity management strategies and guidelines in stock index lessons: What's stock index equity management & money management methods & techniques.

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