What is HK 50 Trade Strategy? - Learn Trading HK 50 Stock Index

The HK 50Index Trade Chart

The HK 50 trade chart is displayed and illustrated above. On the example above this Index is named as HK50CASH. As a trader you want to find a broker that provides this HK 50 trade chart so that you can start to trade it. The stock example above is of HK 50 on the MT4 Software.

Indices Trading Strategy for HK 50 Index

HK 50 tracks the capitalization of top 50 companies in Hong Kong. This index generally moves up over longterm but it is more volatile in its trend movements. When compared to other indexes such as the EURO STOXX & the DAX 30 which have lower volatility in their trend movements, this stock index has wider swings in its trend movements.

Over a long period of time this index will generally move upwards, as a trader you want to be biased and keep buying as the stock index moves up.

A good Stock indices trading strategy would be to keep buying the dips - although as a trader wanting to trade this index, be prepared for generally much wider swings when it comes to trading this stock index.

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 - HKD 450

Value per 1 Pips - HKD 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 money indices management & index trading money management strategies.