What is DAX 30 Trade Strategy? - Guide for Trading/Transacting DAX30 Index
Germany DAX30 Chart
Germany DAX30 trading chart is displayed and displayed above. On the illustration revealed above this financial instrument is named as GER30CASH. As a trader you want to find a broker that provides this Germany DAX30 trading chart so that you can start to trade it. The example That is displayed above is that of Germany DAX30 on the MetaTrader 4 Forex & Software Platform.
Strategy to Trading the Germany DAX30 Index
Germany DAX30 is comprised of blue chip stocks which trade in the Frankfurt Stock Exchange picked from best performing sectors in Germany: hence a good strategy to trade the Germany DAX30 is to trade long most times. This is because in general the best stocks in Frankfurt Stock Exchange Market will in general keep heading up and up because the companies behind these stocks are the best & most lucrative firms in Germany.
Germany DAX30 is also reviewed a few times a year so that as if a stock isn't doing well then it's replaced with another blue chip stock that's doing good. This ensures that most times the Germany DAX30 will keep going and moving up.
As a trader you want to be biased and keep buying as the index moves up. When the German economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good stock index trade strategy would be to buy and keep buying the dips.
During Economic SlowDown & Recession
During economic slowdown and recession times, companies begin to report lower profits & lower growth prospect. It is because of this reason which investors begin to sell stocks of firms reporting lower profits & therefore the stock index monitoring & keeping track of these particular given stocks will also begin moving & going downwards.
Therefore, during these times indices trends are likely to be heading downward and as a trader you should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the stock market index that you as a trader are trading.
Contracts and Specs
Margin Required Per 1 Lot - € 85
Value per 1 Pip(Point) - € 0.1
NB: Even though the general and overall trend is in general move upwards, as a 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 retrace, stock market retracement might also be significant some times & hence as a trader you need to time your entry strictly using this trade strategy: index trading strategy and at same the time use proper equity money management rules just in case of more unexpected volatility in the market. About money management rules in index topics: What's indices money management & indices money management methods.
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