What's SWI20 Strategy? - Lesson Tutorial to Trade SWI20 Index

SWI 20 Chart
SWI 20 chart is displayed above. On example above this is named as SWI20CASH. As a trader you want to find a broker that offers SWI20 Stock Index chart so that you as a trader can start & begin to trade it. The example That is illustrated above is that of SWI 20 in MT4 FX & Software/Platform.
Strategy for Trading/Transacting SWI 20 Index
SWI20 which keeps track of the capitalization of the top 20 corporations in the Switzerland economy. This index in general moves upwards over the long term because the Swiss economy also shows strong and robust growth. Swiss economy also has one of the strongest banking system in the world thus making Swiss economy one of the most reliable and solid economy.
As a indexes trader you want to be biased and keep on buying as the index moves and heads upward. When Swiss economy is doing and performing well and good most of these top stocks/shares will continue to move up and thence this index will also move in an upward trend. A good stock index trade strategy would be to keep buying and buy the dips.
During Economic Slow-Down & Recession
During economic slow down recession periods, companies start reporting slower earnings and revenues, slower profits & lower business growth forecast. It is because of this reason that traders start & begin to sell stocks/shares of companies that are reporting & announcing lower profits & hence index tracking these particular stocks will also begin to head and move downward.
Therefore, during these times index trends are much more likely to be moving and heading 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 as a trader are trading.
Contracts & Specifications
Margin Requirement for 1 Lot/Contract - CHF 100
Value per 1 Pip(Point) - CHF 0.5
NB: Even though general and overall trend is in general moves upward, as a stock index trader you've got to factor in daily market price volatility, on some of the trading days this index may oscillate and move in a range-bound sideways move or might even retrace/pullback, market retracement might & may also be significant some times & hence you as the trader you need to time your entry strictly when using this trade strategy: Index trade strategy and at the same time use proper & suitable money management rules and guidelines in case there's more unexpected market volatility. About index money management principles tutorials: What's index money management guidelines and strategies & stock index equity management methods & techniques.
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