What is DAX 30 Trade Strategy? - Guide for Trading DAX 30 Stock Index
Germany DAX 30 Chart
Germany DAX 30 trading chart is shown & displayed above. On the example above this financial instrument is named as GER30CASH. As a trader you want to find a broker that provides this Germany DAX 30 trading chart so that you can start to trade it. The example That is shown above is that of Germany DAX 30 on the MetaTrader 4 Forex & Software Platform.
Strategy to Trading the Germany DAX 30 Stock Index
Germany DAX 30 is comprised of blue chip stocks that trade in the Frankfurt Bourse picked from best performing sectors in Germany: hence a good strategy to trade the Germany DAX 30 is to trade long most times. This is because in general the best stocks in Frankfurt Bourse will generally keep heading up and up because the companies behind these stocks are the best & most lucrative companies in Germany.
Germany DAX 30 is also reviewed a few times a year so that if a stock is not doing well then it's replaced with another blue chip stock that's doing good. This ensures that most times the Germany DAX 30 will keep going 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 to keep buying the dips.
During Economic SlowDown & Recession
During economic slowdown and recession times, firms begin to report lower profits & lower growth prospect. It is because of this reason that investors begin to sell stocks of companies reporting lower profits & therefore the stock index tracking these particular stocks also will begin to move downwards.
Therefore, during these times stock indices 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 Specs
Margin Required Per 1 Lot - € 85
Value per 1Pip - € 0.1
NB: Even though the general trend is generally move upwards, as a trader you have to factor in the daily market volatility, on some days the stock index may move in a range or even retrace, stock market retracement might also be significant at times & hence as a trader you need to mark-time your trade entry precisely 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 stock indices money management & indices money management methods.
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