What is NETH 25 Trade System? - Learn Trading NETH 25 Stock Index
The NETH 25 Trade Chart
The NETH 25 trade chart is displayed & illustrated and shown above. On the example above this is named as NETH25CASH. As a trader you want to find a broker that provides NETH 25 trade chart so that you can begin to trade it. The stock example shown above is of NETH 25 on MT4 Platform.
Indices Trade System for NETH 25 Index
NETH 25 tracks capitalization of the top 25 companies in Netherlands. This index in general moves upward over the long-term because Netherlands economy also shows strong economic growth.
As a trader you want to be biased & keep buying as the index moves upward. When Dutch economy is doing well most of these top 25 stocks will continue to move up and therefore this stock index will also move in an upwards trend. A good index trade strategy would be to keep buying the dips.
During Economic Slow-Down & Recession
During economic slow-down & recession times, companies begin to report lower profits & lower business growth prospects. It is because to this reason that investors begin to sell stocks of companies reporting lower profits & therefore index tracking these particular stocks will also start to move downward.
Therefore, during these times index trends are likely to be moving downwards & as a trader you should also adjust your trading strategy accordingly to fit the prevailing downward trends of the stock market index that you're trading.
Contracts Specifications
Margin Requirement Per 1 Lot - € 5
Value per 1 Pips - € 0.1
NB: Even though general trend is generally upward, as a trader you've to factor in daily market volatility, on some days the index might oscillate or even retrace, index market retracement may also be significant at times & therefore as a trader you need to time your entry precisely using this trade strategy: Indices trade strategy & at the same time use proper money management rules just in case of more unexpected volatility in the market trend. About index trading money management rules courses: What is index money management and stock index trading money management methods.