SMI 20 Index

SMI 20 or Swiss Market Index 20 is a stocks market index that keeps track of the top 20 corporations in Six Swiss Exchange in Switzerland. This 20 stocks/shares displayed and shown represent the blue chip shares & stocks in 6 Swiss Bourse - these are also the most liquid stocks in this bourse.

SMI Strategies - SMI Strategy

SMI 20 Chart

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

Other Info about SMI 20 Index

Official Index Symbol - SMI:IND

The 20 component stocks which constitute SMI20 are chosen and selected from the top performing firms in the France economy. The 20 shares make up most of total trade turnover volume in SIX Swiss Market. The calculation is revised yearly.

Strategy for SMI 20 Index

SMI20 that keeps track of the market capitalization of top 20 corporations in Switzerland. This stock index in general moves upwards over the long-term because the Swiss economy also shows strong and robust growth. Swiss also has one of the strongest banking system in the globe therefore making the Swiss economy one of the most reliable and solid economy.

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

During Economic Slow-Down & Recession

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

Hence, during these times, market trends are much more likely to be moving downward and as a trader you should also try and adjust your strategy accordingly to suit the current downward trend of the stock index that you are trading.

Contracts and Details

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 move upward, as a stock index trader you've got to factor in daily market price volatility, on some days the index may move in a range or even pull-back, market retracement/pullback might also be substantial some times and hence as the trader you need to time your entry strictly using this trading strategy: trade strategy and at the same time use appropriate/proper money management strategies & guidelines in case there's unexpected volatility in the market trend. About index trading equity management guidelines courses: What's equity management and money management techniques.

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