Trade Stock Indices

What is SPX-500 Trade Strategy? - Tutorial to Trading SPX500 Index

SPX 500 Index

The SPX500 Trade Chart

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

Strategy of Trading SPX500 Index

SPX500 method of calculating makes it more volatile & 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 largest economy in the world.

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

As a trader you want to be biased & keep buying as the stock index moves upwards. When America economy is doing good (most times it's performing good) this upward trend is more likely to be in-favor. A good index trade strategy would be to buy dips.

During Economic Slow-Down & Recession

During economic slow-down and recession times, companies begin to report lower profits & lower growth prospects. It is due to this reason that traders begin to sell stocks 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 trade strategy accordingly to fit the prevailing downward trends of the stock market index that you are trading.

Contracts & Specifications

Margin Requirement for 1 Lot - $ 12

Value per 1 Pip(Point) - $ 0.1

NB: Even though general trend is in general move upwards, as a indices trader you've got to factor in daily market price volatility, on some days the stock index may oscillate or even retrace, market pull back might also be substantial sometimes & hence as a trader you need to time your entry strictly using this strategy: Index trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market movement. About stock index equity management principles courses: What is index equity management & index equity management methods.

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