What is SX 50 Trade System? - Learn Trading SX 50 Index

The SX 50 Trade Chart

The SX 50 trade chart is displayed and illustrated below. On the example below this financial instrument is named as SX50CASH. As a trader you want to find a broker that provides this SX 50 trade chart so that you can start to trade it. The example below is of SX 50 on the MT4 Software.

Index Trade System For Trading SX 50 Index

SX 50 is comprised of blue chip stocks picked from the best performing sectors in the EuroZone: therefore a good trading strategy to trade the SX 50 is to trade long most times. This is because in general the best stocks in Europe will generally keep heading up & up because the companies behind these stocks are the best & most lucrative companies in Europe.

The SX 50 is also revised every year so that if one stock isn't doing well then it's replaced with another stock that's doing good. This ensures that most times the SX 50 will keep going upward.

As a trader you want to be biased and keep buying as the stock index moves up. When the European economies are doing well this upward trend is more likely to be ruling. A good stock index trade 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 - € 40

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 index topics: What is stock index money management & index trading money management strategies.