SMI 20 Index

SMI 20 or Swiss Market Stock Index 20 is a stock market index that keeps track of the top 20 corporations in Six Swiss Exchange in Switzerland. This 20 stocks shown represent the blue chip stocks in Six Swiss Exchange Market - these are also the most traded stocks in this stock exchange.

SMI Strategies - SMI Strategy

SMI 20 Chart

SMI 20 chart is illustrated and shown & displayed above. On the example above this is referred to as as SWI20CASH. As a trader you want to find a broker that provides SMI 20 chart so that you as a trader can start to trade it. The example Which is shown above is that one of SMI 20 on MT4 Forex & Software.

Other Info about SMI 20 Stock Index

Official Index Symbol - SMI:IND

The 20 constituent stocks which constitute SMI20 are selected from the top performing corporations in the France economy. The 20 stocks make up most of total trade turnover volume in SIX Swiss Exchange Market. The calculation is reviewed yearly.

Strategy for SMI 20 Stock Index

SMI 20 that tracks the market capitalization of top 20 corporations in Switzerland. This stock index generally moves upwards over the longterm because Swiss economy also shows strong growth. The Swiss also has one of the strongest bank system in the world - making Swiss economy one of the most reliable economy.

As a trader you want to be biased & keep buying as the stock index moves upwards. When Swiss economy is performing well most of these top stocks will continue to move up and hence this stock index also will move in an upwards trend. A good index trade strategy would be to keep buying the dips.

During Economic Slow-Down and Recession

During economic slow-down & recession times, corporations begin 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, market trends are likely to be moving downward and as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you're trading.

Contracts and Details

Margin Requirement Per 1 Lot - CHF 100

Value per 1 Pip - CHF 0.5

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

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