What is US Tec 100 Trade Strategy? - Tutorial to Trade UsTec 100 Stock Index
UsTec 100 Trading Chart
UsTec 100 chart is shown & illustrated and shown above. On the example above this stock index is named as US100CASH. As a trader you want to find a broker that provides UsTec 100 chart so that you can begin to trade it. Stock index example shown above is that of UsTec 100 on MetaTrader 4 Forex Software.
Strategy for Trading UsTec 100 Index
UsTec 100 technique of calculating makes it more volatile & hence there are more wide swings in the price movement of this index. The has a weighting factor for each stock included on this stock index. Although this index in general moves upwards over the long-term because American economy also shows strong growth.
As a trader you want to be biased and keep buying as the stock index moves upward. When America economy is doing well, stocks that make up the UsTec 100 index will keep gaining in values & thus this index is likely to keep moving in an upwards trend. A good index trade strategy to trade this Stock Index 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 & hence index tracking these particular stocks will also start to move downward.
Therefore, during these times, market trends are likely to be moving downwards 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 Specifications
Margin Requirement Per 1 Lot - $30 dollars
Value per 1Pip - $ 0.1
NB: Even though general trend is generally move upward, as a stock index trader you have to factor in daily market volatility, on some days the stock index might move in a range or even retrace, market retracement may also be significant at times & therefore as a trader you need to time your trade entry precisely when using this trade strategy: 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 stock index equity management and index money management strategies.
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