Trade Stock Indices

What's FTSE100 Trade Strategy? - Lesson Tutorial to Trade FTSE100 Index

What is FTSE 100 Strategies? - Course Tutorial to FTSE 100 Index

FTSE100 Chart

FTSE 100 chart is shown above. On above example the index is named as UK100CASH. As a trader you want to find an online broker who offers the this FTSE 100 chart so that as you as the trader can begin to trade it. The example Which is illustrated & shown above is that of FTSE100 on the MetaTrader 4 FX & Index Software/Platform.

Strategy to Trading the FTSE100 Index

FTSE 100 illustrates the relative trend movement of top 100 shares in the United Kingdom. In general the share value of top 100 corporations will keep moving upwards, hence this stock index will also over time keep moving upward. Should a corporate not meet required business expansion targets, the company will be removed from the stock index & replaced with an alternative corporate that has better growth prospects.

As a trader wanting to trade this stock index, general direction at any one particular moment will be likely more bullish than bearish. This is because as long as the top 100 companies being tracked & monitored are doing booming business, then their stock value will keep moving and heading upwards, and threfore this index will also keep heading in an upwards market trend.

As a stock index trader you want to be biased and keep buying as the stock index moves and heads upwards. When the UK economy is doing good (most times it's performing well) this upwards trend is much more likely to be in place. A good trading strategy would be to buy and keep buying the market dips.

During Economic SlowDown & Recession

During economic slowdown and recession times, corporations begin and start reporting lower revenues, lower profits and lower growth prospect. It is because of this reason which traders begin to sell stocks of firms reporting lower profits & hence the index monitoring these particular stocks & shares will also start to move downward.

Hence, during these times stock index trends are much more likely to be heading downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downwards trends of the stocks market index that you are trading.

Contracts and Details

Margin Required Per 1 Contract - £ 70

Value per 1 Pip(Point) - £ 0.1

NB: Even though the general and overall trend is in general move upwards, as a stock index 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, stocks market retracement may also be substantial some times & hence as a trader you need to time your entry precisely using this strategy: stock index trading strategy & at same time use the proper/appropriate money management techniques/guidelines in case there's more unexpected market trend volatility. About equity management guidelines & methods in stock index tutorials: What's stock index equity management and stock index money management system/plan.

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