What is AEX-25 Strategy? - Course Tutorial to AEX 25 Index

AEX25 Trading Chart
AEX25 chart is displayed and illustrated and shown above. On the example revealed above this Index is named as NETH25CASH. As a trader you want to find a broker who provides this AEX 25 Stock Index chart so that you as a trader can start & begin to trade it. The example That's displayed above is that of AEX 25 on the MetaTrader 4 Platform.
Strategy to Trading the AEX 25 Index
AEX25 tracks the capitalization of top 25 firms in Netherlands. This index in general moves upwards over long-term because the Netherlands economy also shows stellar economic growth.
As a trader you want to be biased & keep buying as the stock index moves up. When Dutch economy is doing well most of these top 25 stocks will continue to move up and hence this stock index will also move in an upwards market trend. A good stock index trade strategy would be for traders to keep buying and buy the dips.
During Economic SlowDown & Recession
During economic slowdown and recession times, companies start and begin to report lower earnings, lower profits and lower growth prospects. It is because of this reason which investors & traders start to sell stocks of firms reporting lower profits and thence the index monitoring these specific stocks & shares will also start and begin to move downward.
Therefore, during these times stock index trends are a lot more likely to be heading downward and as a trader you should also adjust your strategy accordingly to suit the current downward trend of the stock market stock index that you are trading.
Contracts and Specifications
Margin Required Per 1 Lot - € 5
Value per 1 Pip(Point) - € 0.1
NB: Even though the general and overall trend is in general moves upwards, as a trader you've got to factor in the daily market price volatility, on some of the days the index may move in a range or even retrace, stock market retracement may & might also be significant some times and thence as the trader you need to time your entry strictly using this trading strategy: stock index trading strategy & at same the time use proper and suitable money management guidelines and rules in case there's more unexpected market volatility. About equity management guidelines & methods in stock index tutorials: What's stock index equity money management guidelines and principles & stock index equity money management system/plan.
Get More Topics and Tutorials:


