What is UsTec 100 Stock Indices Trade Strategy? - Learn Trading UsTec 100 Index
The UsTec 100 Trade Chart
The UsTec 100 trade chart is displayed & illustrated and shown above. On the example above this index is named as US100CASH. As a trader you want to find a broker that provides UsTec 100 trade chart so that you can begin to trade it. The example shown above is of UsTec 100 on MT4 Platform.
Indices Trade Strategy for UsTec 100 Index
UsTec 100 method of calculating makes it more volatile & therefore there are more wide swings in price movement of this index. The Stock Index has a weighting factor for each stock included on this stock index. Although this index in general moves upward over the long-term because American economy also shows strong growth.
As a trader you want to be biased & keep buying as the index moves upward. When America economy is doing well, stocks that make up the UsTec 100 Stock index will keep gaining in values & thus this stock index is likely to keep moving in an upwards trend. A good strategy to trade this Stock Index would be to buy 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 - $ 30
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 money management rules in stock indexes trading topics: What is stock index trading money management and stock indexes trading money management methods.