What is IBEX 35 Trade Strategy? - Tutorial to Trading IBEX 35 Index
IBEX 35 Trading Chart
IBEX 35 trading chart is shown & displayed above. On the example 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 shown above is that of IBEX 35 on the MetaTrader 4 Forex Software.
Strategy to Trading the IBEX 35 Index
IBEX 35 that tracks the market capitalization of top 35 corporations in Spain. This stock index in general moves moves up over long-term but it is more volatile in its trend movements. When compared to other stock indexes such as the EURO STOXX & the DAX 30 which have lower volatility in their trend movements, this stock index has wider swings in its trend movements.
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 the dips - although as a trader wanting to trade this index, be prepared for generally much wider swings in trading this stock index.
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, trends are 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 are trading.
Contracts & Specifications
Margin Required Per 1 Lot - € 140
Value per 1Pip - € 1
NB: Even though the general trend is generally moves upwards, as a trader you have 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 at times and 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 equity money management rules in index lessons: What's stock index equity money management & index equity management strategies.
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