What is US Tec 100 Strategy? - Learn UsTec100 Index
The UsTec100 Trade Chart
The UsTec100 trade chart is displayed and illustrated & shown & displayed above. On the example put on display above this index is named as US100CASH. As a trader you want to find a broker that provides UsTec 100 trade chart so that as you as a trader can start to trade it. Example displayed above is of UsTec 100 on MT4 Software Platform.
Trade Strategy for US TEC 100 Index
US TEC 100 recipe of calculating it makes it more volatile & thence there are much more wider swings in the price movement of this index. The index has got a weighting component/constituent for each stock included on this stock index. Although this index generally moves upward over the long-term because US economy also shows strong and robust growth.
As a indices trader you want to be biased and keep on buying as the index moves and heads upwards. When the America economy is doing good, stocks which constitute the UsTec100 Stock index will keep gaining in values and thus this stock index is likely to keep moving in an upward trend. A good indices trade strategy to trade this Index would be to buy dips.
During Economic Slow-Down & Recession
During economic slow down recession periods, firms start reporting slower earnings, lower profits and lowers growth prospects. It is due to this reason that traders start to sell stocks of companies which are announcing & reporting lower profits and therefore index tracking these particular stocks will also start to move downwards.
Hence, during these times stock index trends are much more likely to be moving down 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 Details
Margin Requirement for 1 Lot - $ 30
Value per 1 Pip(Point) - $ 0.1
NB: Even though general trend is in general move upward, as a stock index trader you've got to factor in daily market volatility, on some days the stock index might oscillate or even retrace, index market pull back may also be substantial sometimes and therefore as a trader you need to time your entry precisely using this trading strategy: trading strategy and at the same time use proper & suitable money management guidelines & principles just in case of unexpected market volatility. About money management principles in indexes topics: What's index equity management and stock indexes money management strategies/methods.
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