Trade Stock Indices

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

SPX 500 Stock Index

The SPX 500 Trade Chart

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

Strategy of Trading SPX 500 Stock Index

SPX 500 method of calculating makes it more volatile & therefore there are much more wider swings in the price movement of this stock index. Although this index generally moves upward over the long term because US economy also shows strong 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 performing good (most times it's performing good) this upwards 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 business growth prospects. It is due to this reason that traders begin to sell stocks of companies which arereporting lower profits & therefore stock index tracking these particular stocks also will begin to move downward.

Hence, during these times index trends are likely to be moving downwards & as a trader you should also adjust your trade strategy accordingly to fit the prevailing downward trends of the stock market stock index that you are trading.

Contracts & Specifications

Margin Requirement for 1 Lot - $ 12

Value per 1Pip - $ 0.1

NB: Even though general trend is generally move upwards, as a stock indices trader you have to factor in daily market volatility, on some days the stock index may oscillate or even retrace, market pull back might also be substantial at times & hence as a trader you need to time your trade entry precisely using this strategy: Stock Indices 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.

Study More Courses:

Forex Seminar Gala

Forex Seminar

Stock Indices Broker