What is SWI 20 Trade System? - Learn Trading SWI 20 Index
The SWI 20 Trade Chart
The SWI 20 trade chart is displayed & illustrated and shown above. On the example above this is named as SWI20CASH. As a trader you want to find a broker that provides SWI 20 trade chart so that you can begin to trade it. The stock example shown above is of SWI 20 on MT4 Platform.
Indices Trade System for SWI 20 Index
SWI 20 tracks capitalization of the top 20 companies in Switzerland. This index in general moves upward over the long-term because Swiss economy also shows strong growth. The Swiss also has one of the strongest banking system in the world - making the Swiss one of the most reliable economy.
As a trader you want to be biased & keep buying as the index moves upward. When Swiss economy is doing well most of these top 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 - CHF 100
Value per 1 Pips - CHF 0.5
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.