DJI30 Industrial Average Index or Dow 30 - Wall Street 30 Index

DJI30 Industrial Average Index or Dow 30 is a stock market index that tracks 30 of the largest stocks in the USA. The stocks that are used to calculate this components are picked from 30 biggest companies in the USA.

The DJI30 is the most popular & most followed stock index globally. The DJI30 Industrial Average originally tracked the performance of Industrial stocks but has changed to include stocks from =the other sectors of the economy. The main criteria being the stocks selected are from the largest American companies.

The DJI30 is more volatile than most of the other Top Stock Indices, The DJI30 although will over longterm trend upwards it'll have more price pull-backs and more consolidations than other index. Traders may prefer to trade other indices other than the DJI30 Industrial Average if they are more accustomed to trading more stellar trends found in other top stock indices.

The DJI30 Trade Chart

The DJI30 trade chart is displayed and illustrated above. On the example above this financial instrument is named as DJI30CASH. As a trader you want to find a broker that provides this DJI30 trade chart so that you can start to trade it. The stock example shown above is of DJI30 on the MT4 Forex & Stock Indices Trading Software.

Other Trading Information about the DJI30 Stock Index

Index Symbol - DJI

The 30 components stocks that makes up DJI30 are picked from the top American companies. The calculation of this stock index is however different compared to other Stock Indices; the price component of the 30 stocks is divided by a common divisor to come up with this stock index. This makes this index more volatile than others.

Strategy for Trading the DJI30 Index

DJI30 method of calculation make the Dow 30 index more volatile and hence there are more wide swings in the price movements of this stock index. Although this stock index generally moves up over longterm because the American economy also shows strong growth & is also the biggest economy in the world.

As a trader wanting to trade this index, be prepared for wider price swing & a little more volatility.

As a trader you want to be biased and keep buying as the stock index moves up. When the USA economy is doing well (most times it's doing well) this upward trend is more likely to be ruling. A good stock indices trading strategy would be to buy 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 for 1 Lot - $ 150

Value per 1 Pips - $ 0.5

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 stock index topics: What is stock index money management & stock index money management methods.