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What is US 100 Index Trading Strategy? - How to Trade US 100 Index - Learn Trading US 100 Index


US 100 Index - Indices Trading Strategy for US 100 Index



The US 100 Index Chart

The US 100 Index chart is shown above. On the example above this stock index is named as US100CASH. As a trader you want to find a broker that provides this The US 100 Index chart so that you can start to trade it. The stock index example above is of US 100 Index on the MetaTrader 4 Forex and Index Trading Platform.



Indices Trading Strategy for US 100 Stock Index

The US 100 Index method of calculation makes it more volatile hence there are more wide swings in the price movements of this stock index. The Index has a weighting factor for each stock included on this index. Although this index generally moves up over the long term because the American economy also shows strong growth.


As a trader you want to be biased and keep buying as the index moves up. When the USA economy is doing well, the stocks that make up the US 100 Stock index will keep gaining in values and thus this index is likely to keep moving in an upward trend. A good strategy to trade this Index would be to buy the dips.



During Economic Slow Down and Recession

During economic slowdown and recession times, companies start to report lower profits and lower business growth prospects. It is due to this reason that investors start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also start to move downwards.


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



Contracts Specifications

Margin Required Per 1 Lot - $ 30

Value per 1 Pip - $ 0.1


Note: Even though the general trend is generally upwards, as a trader you have to factor in the daily market volatility, on some days the stock index may oscillate or even retrace, the stock index market retracement may also be significant at times and therefore as a trader you need to time your entry precisely using this strategy: Stock indices trading strategy and at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in stock index trading topics: What is money stock indices management and stock index trading money management methods.

 

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