Trade Stock Indices

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

S & P 500 Index - Standard and Poors 500 Index Tutorial

The S & P 500 Trade Chart

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

Strategy to the S & P 500 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 upwards over long-term because the US economy also shows strong and robust growth & is also the biggest/largest economy in the globe.

As a trader wanting to trade this index, be prepared for wider price swing and a little more volatility.

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

During Economic SlowDown and Recession

During economic slowdown & recession times, companies begin and start reporting slower revenues, lower profits and lowers growth prospects. It is because of this reason which investors/traders begin to sell stocks of firms reporting lower profits & therefore the stock index monitoring & keeping track of these specific stocks also will begin heading & moving downward.

Therefore, during these times indices trends are likely to be heading downwards 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 as a trader are trading.

Contracts and Specs

Margin Required Per 1 Contract - $ 12 dollars

Value per 1 Pip(Point) - $ 0.1

NB: Even though the general and overall trend is in general moves upwards, as a trader you've got to factor in the daily market price volatility, on some of the days the index may move in a range or even retrace, market retracement might & may also be significant some times and thence as the trader you need to time your entry strictly using this strategy: Stock indices strategy & at same time use the proper/suitable money management guidelines and principles just in case of more unexpected market trend volatility. About equity management guidelines & methods in stock index tutorials: What's stock index equity money management strategies/guidelines & stock index equity money management system/plan.

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