What's US Tec 100 Strategy? - Tutorial to Trade UsTec100 Index

UsTec 100 Trading Chart
UsTec 100 chart is displayed and illustrated and shown above. On the example put on display above this stock index is named as US100CASH. As a trader you want to find a broker who offers UsTec 100 chart so that you as a trader can start & begin to trade it. Stock index example shown above is that of UsTec 100 on MetaTrader 4 FX Software.
Strategy for Trading/Transacting UsTec100 Index
US TEC 100 technique/formula of calculating it makes it more volatile and therefore there are more wide swings in price movement of this index. The index has got a weighting factor for each stock included on this index. Although this index in general moves upwards over the long term because American economy also shows strong and robust growth.
As a indexes trader you want to be biased and keep on buying as the index moves and heads upward. When America economic and business environment is doing and performing well & good, stocks which make up the UsTec100 index will keep increasing in values & thus this index is likely to keep moving in an upward market trend. A good stock index trade strategy to trade this Index would be to buy the market dips.
During Economic Slow-Down & Recession
During economic slow down recession periods, companies start reporting slower earnings and revenues, slower profits & lower business growth prospect. It is because of this reason that traders start & begin to sell stocks/shares of companies that are announcing and recording lower profits & hence index tracking these particular stocks will also start to move downwards.
Therefore, during these times, market trends are a lot more likely to be heading & moviing down & as a trader you should also adjust the strategy that you're using accordingly to fit the prevailing downwards trend of the stock index that you're trading.
Contracts and Specifications
Margin Requirement for 1 Lot/Contract - $30 dollars
Value per 1 Pip(Point) - $ 0.1
NB: Even though general trend is in general move upwards, as a stock index trader you've got to factor in daily market volatility, on some days the stock index might oscillate and move in a range-bound move or may even retrace/pullback, market retracement may also be significant some times & therefore as a trader you need to time your entry precisely when using this trade strategy: trading strategy & at the same time use proper & appropriate money management methods & guidelines just in case of unexpected volatility in the market. About equity management guidelines & strategies in index topics: What's stock index equity management & index money management methods/strategies.
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