Trade Stock Indices

What is SPX-500 Strategy? - Guide to Trading SPX500 Index

SPX 500 Index

The SPX 500 Trade Chart

The SPX500 chart is displayed and illustrated & shown & displayed above. On the illustration above this trading instrument is referred to & known as as US500CASH. As a trader you want to find a broker that offers SPX 500 chart so that as you as a trader can start & begin to trade it. Stock indices example illustration displayed above is of SPX 500 on MetaTrader 4 FX and Platform.

Strategy of SPX500 Index

SPX500 method of calculating makes it more volatile and therefore there are much more wider swings(more volatile swings) in the price movement of this stock index. Although this index in general moves upward over the long-term because US economy also shows strong and robust growth and is also the biggest economy in the world.

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

As a indexes trader you want to be biased and keep on buying as the index moves upwards. When America economy is doing good (most times it is doing good) this upward market trend is more than likely to be the one that is present. A good trading strategy for this index would be to buy dips.

During Economic Slow Down and Recession

During economic slow down & recession periods, companies begin reporting lower earnings, lower profits & lower business growth forecasts. It is due to this reason that traders begin & start to sell stocks/shares of companies which are posting & recording lower profits & therefore stock index monitoring these particular specifed stocks will also begin to move and head downwards.

Hence, during these times index trends are a lot more likely to be moving & heading downwards & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stocks market index which you're trading.

Contracts & Specifications

Margin Requirement per 1 Lot/Contract - $ 12

Value per 1 Pip(Point) - $ 0.1

NB: Even though general trend is in general move upward, as a indices trader you've got to factor in daily market price volatility, on some of the days the index might oscillate or even retrace, market pull back might also be substantial sometimes & hence you as a trader you need to time your entry strictly using this strategy: Index trade strategy and at the same time use the appropriate/proper money management guidelines and principles in case there's unexpected volatility in the market movement. About index equity management principles tutorials: What is index equity management and index equity management plan/system.

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