Trade Stock Indices

What is S and P 500 Trade Strategy? - Tutorial to Trade S & P 500 Stock Index

S and P 500 Stock Indices - Standard and Poors 500 Stock Indices Tutorial

The S & P 500 Trade Chart

S&P 500 trading chart is shown and illustrated above. On the example above this instrument is named as US500CASH. As a trader you want to find a broker that provides this S&P 500 trading chart so that you can begin to trade it. The example That is shown above is that of S&P 500 on the MetaTrader 4 Forex Software.

Strategy to Trading the S & P 500 Stock Index

S&P 500 method of calculation makes it more volatile and hence there are more wide swings in the price movements of this stock index. Although this index in general moves moves up over long-term because the America 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 and a little more volatility.

As a trader you want to be biased and keep buying as the index moves up. When the America economy is doing well (most of the times it is doing well) this upward trend is more than likely to be ruling. A good stock index trade strategy would be to buy to keep buying the dips.

During Economic SlowDown and Recession

During economic slowdown & 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 indices trends are likely to be heading downwards 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 Specs

Margin Required Per 1 Lot - $ 12 dollars

Value per 1Pip - $ 0.1

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 might also be significant at times and therefore as a trader you need to time your entry precisely using this strategy: Stock indices strategy & at same time use proper money management rules just in case of more unexpected volatility in the market trend. About equity management guidelines in stock index tutorials: What's stock index equity money management & stock index equity money management methods.

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