What is US 100 Trade System? - Learn Trading US 100 Index
US 100 Trading 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 provides US 100 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.
Index Trade System for US 100 Index
US 100 technique/formula of calculating it makes it more volatile & hence there are more wide swings in the price movement of this index. The stock 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 American economy also shows strong and robust growth.
As a trader you want to be biased & keep buying as the index moves upward. When America economy is doing well, stocks which make up the US 100 Stock index will keep gaining in values & thus this stock index is likely to keep moving in an upwards trend. A good stock index trade strategy to trade this Index would be to buy the market dips.
During Economic Slow-Down & Recession
During economic slow-down and recession times, companies begin to report lower profits and lower growth prospects. It is because of this reason that investors begin to sell stocks of companies that arereporting lower profits and hence stock index tracking these particular stocks also will begin to move downward.
Therefore, during these market times, the market trends are likely to be moving downwards and 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're trading.
Contracts Specifications
Margin Requirement Per 1 Lot - $30 dollars
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 index might move in a range or even retrace, market retracement may also be significant some times & therefore as a trader you need to time your entry precisely when using this trade strategy: Index trade strategy and at the same time use proper equity management principles just in case of more unexpected volatility in the market. About index money management rules courses: What's money management & trading money management methods.
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