What is US30 Trade Strategy? - Learn Trading US30 Index
The US30 Chart
US30 trading chart is displayed and portrayed above. On example put on display above this trading instrument is named as US30CASH. As a trader you want to find a broker that provides US30 chart so that you as a trader can begin to trade it. The example That is illustrated above is that of US 30 on MT4 Software.
Index Trade System for US30 Index
US30 technique/formula of calculating it 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 and robust growth & is also the biggest economy in the globe.
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 market 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 are reporting & announcing lower profits and hence stock index keeping track and monitoring of these given stocks will also start to move & go downwards.
Therefore, during these market times, the market trends are much more likely to be heading and going down 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 1 Pip(Point) - $ 0.5
NB: Even though general trend is in general move upward, as a stock indices trader you've got 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 some times and hence as a trader you need to time your entry precisely when using this trade strategy: Stock Index 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.
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