What is CAC 40 Trade Strategy? - Tutorial Course for Trading/Transacting CAC40 Index
CAC40 Chart
CAC40 chart is displayed and illustrated above. On example illustration revealed above this Stock Index is named as FRA40CASH. As a trader you want to find a broker who offers the this CAC 40 Stock Index chart so that as you as a trader can start & begin to trade it. The example Which is displayed above is that of CAC 40 on the MT4 Forex Software.
Strategy to the CAC40 Index
CAC40 that keeps track of the market capitalization of top 40 corporations in the France economy. This index generally moves upwards over long-term because France economy also shows strong and robust growth.
As a stock index trader you want to be biased and keep buying as the stock index moves upwards. When French economy is doing good most of these top shares will continue to move up and threfore this index will also move in an upward trend. A good stock index trade strategy would be for traders to keep buying and buy the dips.
During Economic SlowDown and Recession
During economic slowdown & recession times, corporations start and begin to report lower earnings, lower profits and lowers growth prospect. It is because of this reason which traders start & begin to sell stocks of firms reporting lower profits & hence the index monitoring these particular stocks & shares will also start heading downward.
Hence, during these times index trends are much more likely to be heading downward and as a trader you should also adjust your strategy accordingly to suit the present downward trends of the stock index that you're trading.
Contracts and Details
Margin Required Per 1 Contract - € 40
Value per 1 Pip(Point) - € 0.1
NB: Even though the general and overall trend is in general move upwards, as a indices trader you've got to factor in the daily market price volatility, on some days the stock index may move in a range or even pullback, stock market pullback might also be significant some times & therefore you as the trader you need to time your entry precisely using this trading strategy: stock index trading strategy & at the same time use proper/suitable money management strategies/guidelines in case there is unexpected volatility in the market trend. About equity management guidelines and rules in stock index tutorials: What's index equity management and stock index money management plan.
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