What is AEX 25 Trade Strategy? - Tutorial to Trading AEX 25 Stock Index

The AEX 25 Trade Chart

The AEX 25 trade chart is displayed and illustrated above. On the example above this Index is named as NETH25CASH. As a trader you want to find a broker that provides this AEX 25 trade chart so that you can start to trade it. The example above is of AEX 25 on the MT4 Forex & Stock Indices Trading Software.

Strategy for Trading the AEX 25 Stock Index

AEX 25 tracks the capitalization of top 25 companies in Netherlands. This index generally moves up over longterm because the Netherlands economy also shows strong economic growth.

As a trader you want to be biased and keep buying as the stock index moves up. When the Dutch economy is doing well most of these top 25 stocks will continue to move up & therefore this index will also move in an upward trend. A good index trade strategy would be to keep buying the dips.

During Economic SlowDown and Recession

During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also begin to move downwards.

Therefore, during these times stock index trends are likely to be heading downward and as a trader you should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock market index that you are trading.

Contracts and Specifications

Margin Required Per 1 Lot - € 5

Value per 1 Pips - € 0.1

NB: Even though the general trend is generally upward, as a trader you have to factor in the daily market volatility, on some days the stock index might oscillate or even retrace, stock index market retracement might also be significant at times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock index trading strategy & at same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in index trading topics: What is stock index money management & stock index money management methods.