What is GDAXI 30 Trade Strategy? - Learn Trading GDAXI 30 Index

The Germany GDAXI 30 Trade Chart

The Germany GDAXI 30 trade chart is displayed and illustrated above. On the example above this financial instrument is named as GDAXI30CASH. As a trader you want to find a broker that provides this Germany GDAXI 30 trade chart so that you can start to trade it. The stock example above is of Germany GDAXI 30 on the MT4 Software.

Indices Trading Strategy for Germany GDAXI 30 Index

Germany GDAXI 30 is comprised of blue chip stocks that trade in the Frankfurt Stock Exchange picked from the best performing sectors in Germany; therefore a good trading strategy to trade the Germany GDAXI 30 is to trade long most times. This is because in general the best stocks in Frankfurt Stock Exchange will generally keep heading up & up because the companies behind these stocks are the best & most lucrative companies in Germany.

The Germany GDAXI 30 is also revised a few times every year so that if a stock isn't doing well then it's replaced with another blue chip stock that's doing good. This ensures that most times the Germany GDAXI 30 will keep going upward.

As a trader you want to be biased and keep buying as the stock index moves up. When the German economy is doing well (most times it's doing well) this upward trend is more likely to be ruling. A good trading strategy would be to buy dips.

During Economic SlowDown and Recession

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

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

Contracts Specifications

Margin Required Per 1 Lot - € 85

Value per 1 Pips - € 0.1

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