What is IBEX 35 Trade Strategy? - Tutorial to Trading IBEX35 Index
IBEX35 Trading Chart
IBEX35 trading chart is displayed and displayed above. On the exemplification revealed above this Index is named as SPAIN35CASH. As a trader you want to find a broker that provides this IBEX 35 trading chart so that you can start to trade it. The example That is displayed above is that of IBEX35 on the MetaTrader 4 Forex Software.
Strategy to Trading the IBEX35 Index
IBEX35 that keeps track of the market capitalization of top 35 companies in Spain. This stock index in general moves upwards over long-term but it is more volatile in its trend movement. When compared & analyzed to other stock indices like the EURO STOXX & the DAX 30 indices which have lower volatility in their trend moves, this stock index has wider and more volatile swings in its trend movement.
Over a long period of time this index will in general moves move upward, as a trader you want to be biased and keep buying as the index moves up.
A good Stock indices strategy would be to keep buying and buy the market dips - although as a trader wanting to trade this index, be prepared for much wider and more volatile swings in trading this stock index.
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 corporations reporting lower profits & therefore the stock index monitoring and keeping track of these given stocks will also start heading downwards.
Therefore, during these market times, the trends are much more likely to be heading downwards & 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 & Specifications
Margin Required Per 1 Lot - € 140
Value per 1 Pip(Point) - € 1
NB: Even though the general trend is in general moves upwards, as a trader you've got to factor in the daily market volatility, on some days the index might move in a range or even retrace, market retracement may also be significant some times and hence as a trader you need to time your entry strictly using this trade strategy: index trading strategy & at same the time use proper equity money management rules just in case of more unexpected volatility in the market. About equity money management rules in index lessons: What's stock index equity money management & index equity management strategies.
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