What's SWI20 Trade Strategy? - Tutorial to Trade SWI20 Index
SWI 20 Chart
SWI 20 trading chart is displayed and displayed above. On example above this is named as SWI20CASH. As a trader you want to find a broker that provides SWI 20 chart so that you as a trader can begin to trade it. The example That is illustrated above is that of SWI 20 on 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 trader you want to be biased and keep buying as the stock index moves upward. When Swiss economy is doing well most of these top stocks will continue to move up & therefore this index will also move in an upwards trend. A good stock index trade strategy would be to keep buying and buy the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, companies start to report lower profits & lower growth prospects. It is because of this reason that investors start to sell stocks of companies that arereporting lower profits & hence index tracking these particular stocks will also begin to move downward.
Therefore, during these times index trends are likely to be moving downwards 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 as a trader are trading.
Contracts & Specifications
Margin Requirement Per 1 Lot - 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 days the index might move in a range or even retrace, market retracement may also be significant some times & therefore as a trader you need to time your entry strictly when using this trade strategy: Index trade strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market. About stock index equity management principles courses: What's index money management & stock index equity management methods.
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