JP 225 Stock Index

JP 225 is a stock market index for Tokyo Stock Exchange in Japan. This stock index tracks stocks of the top 225 corporations illustrated in Tokyo Stock Exchange.

Strategies for Trading JP 225 Index

JP 225 Chart

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

Other Info about JP 225 Stock Index

Index Symbol - NKY:IND

The 225 constituent stocks that make up the JP 225 are selected from 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 based on market capitalization.

Strategy to Trading JP 225 Index

JP 225 shows relative trend movement of top 225 stocks in Japan. Because this stock index tracks 225 corporations it'll be more volatile when compared to an stock index like Germany DAX 30 that only tracks 30 corporations.

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 well (most times it's performing good) this upwards trend is more likely to be in place. A good index trade strategy would be to buy dips.

During Economic Slow-Down and Recession

During economic slow-down and recession times, corporations start to report lower profits and lower business growth prospects. It's due to this reason that traders start to sell stocks of corporations that arereporting lower profits and hence index tracking these particular stocks will also start to move downward.

Hence, during these times stock index trends are likely to be moving downward and 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 & Details

Margin Requirement Per 1 Lot - JPY 90

Value per 1 Pip - JPY 0.1

NB: Even though general trend is generally moves upwards, as a stock indices trader you have to factor in daily market volatility, on some days the index might move in a range or even pullback, market pullbackretracement might also be significant at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market trend. About equity management principles in stock index lessons: What's stock index equity management and equity management strategies.

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