What is US30 Trade Strategy? - Learn Trading US30 Stock Index
The US30 Chart
US30 trading chart is shown and portrayed & shown above. On example above this instrument is named as US30CASH. As a trader you want to find a broker that provides US30 chart so that you can begin to trade it. The example That is illustrated above is that of US30 on MT4 Software.
Indices Trade System for US30 Index
US30 technique of calculating makes Dow 30 stock index more volatile and hence there are more wide swings in the price movement of this stock index. Although this index in general moves upwards over the long-term because American economy also shows strong growth & is also the biggest economy in the world.
As a trader wanting to trade this stock index, be prepared for wider price swing & a little more volatility.
As a trader you want to be biased & keep buying as the index moves upward. When America economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good stock index trade strategy would be to buy the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, firms start to report lower profits & lower business growth prospects. It is because of this reason that investors start to sell stocks of companies that arereporting lower profits and hence stock index tracking these particular stocks also will begin to move downward.
Therefore, during these times, 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 are trading.
Contracts Specifications
Margin Requirement Per 1 Lot - $150
Value per 1Pip - $ 0.5
NB: Even though general trend is generally move upward, as a stock indices trader you have to factor in daily market volatility, on some days the stock index may move in a range or even retrace, market retracement might also be significant at times and hence as a trader you need to time your trade entry precisely when using this trade strategy: Indices trade strategy & at the same time use proper equity management principles just in case of more unexpected volatility in the market. About equity management principles in index topics: What's money indices management and indices money management strategies.
Study More Lessons & Topics:
- Is a Double Bottoms Chart Pattern Bullish or Bearish Pattern?
- How to Trade Indices with Bollinger Band Technical Indicator Indices Strategy
- How Can I Use MetaTrader 4 Mobile App?
- Bears Power Index Indicator Analysis
- How Can I Add FTSE MIB in MetaTrader 5 Android App?
- EU 50 Trade Strategy Tutorial
- One of the Best Stock Indices Account Deposit Bonus Including Lot Rebates & Stock Indices Cash Back
- ROC, Rate of Change Indices Trading Indicator Analysis
- Learn Index Trend Following Trading Strategies