Trade Stock Indices

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

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

FTSE100 Chart

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

Strategy to Trading the FTSE100 Index

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

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

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

During Economic SlowDown & Recession

During economic slowdown and recession times, corporations begin to report 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 tracking these particular stocks will also start to move downwards.

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

Contracts and Details

Margin Required Per 1 Lot - £ 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, stock market pullbackretracement might also be substantial some times & therefore as a trader you need to time your entry precisely using this trading strategy: stock index trading strategy & at same time use proper equity management principles just in case of more unexpected volatility in the market trend. About equity management principles in stock index tutorials: What's stock index equity management & stock index money management methods.

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