What is US 100 System? - Learn Trading US 100 Index
US 100 Chart
US 100 chart is displayed & illustrated and shown above. On the example put on display above this stock index is named as US100CASH. As a trader you want to find a broker that offers US100 Stock Index chart so that you as a trader can begin to trade it. The example That is illustrated above is that of US 100 on MT4 Software Platform.
Index Trade System for US 100 Index
US 100 technique/formula of calculating it makes it more volatile and therefore there are more wide swings in price movement of this index. The index has got a weighting factor for each stock included on this index. Although this index in general moves upwards over the long term because USA economy also shows strong and robust growth.
As a index trader you want to be biased and keep on buying as the index moves upward. When America economic & business environment is doing well & good, stocks which make up the US 100 Stock index will keep increasing in values & thus this stock index is likely to keep moving in an upward market trend. A good stock index trade strategy to trade this Index would be to buy the market dips.
During Economic Slow-Down and Recession
During economic slow down & recession periods, firms begin reporting lower revenues, lower profits and lowers growth prospect. It is because of this reason that investors/traders start to sell stocks & shares of companies that are recording and announcing lower profits and hence stock index keeping track and monitoring of these particular specifed stocks will also begin heading and going downward.
Therefore, during these market times, the market trends are likely to be heading & going downward and as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stocks market index that you are trading.
Contracts Specifications
Margin Requirement Per 1 Lot/Contract - $30
Value per 1 Pip(Point) - $ 0.1
NB: Even though general trend is in general moves upward, as a stock index trader you've got to factor in daily market volatility, on some days the stock index might move and oscillate in a range bound sideways move or may even pullback and retrace, retracement may also be significant some times & hence as a trader you need to time your entry precisely when using this trade strategy: Index trade strategy and at the same time use the proper/appropriate money management rules & guidelines in case there is unexpected market volatility. About index money management rules courses: What's money management guidelines and methods & trading money management plan/system.
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