TRADING INDICES
Trading company indices is often regarded as less riskier as compared to trading each individual stock on its own as it is regarded as less risky. The concept is as it is prone too less market manipulation as compared to each individual stock on the stock exchange where their data can be manipulated. Indices gives a general summary of how major companies are doing and since every company aims at growth it is likely the index increases everyday even though some day times are a most in the market. So in a case where a single company does bad and all others perform well the index will still rise are profit from one will cover loss from the other
Indices can be traded with a simple let the trade run strategy. This is where the trade is entered and no TAKE PROFIT level is input so you close the trade when you feel comfortable with what you achieved and for a day trader as i am at the end of the day. So if the market moves 200 PIPS during the session you benefit form every pip
Indices should be traded on a momentum bases rather than relying on technical analysis fully this is so because stocks move on financial data mostly not too say technical analysis is useless but it also has a role to play when trading. Pre market news releases are crucial when trading indices as it give a glance as to what will happen during the day whether it will go up or down with that said goo luck in your trading
Indices can be traded with a simple let the trade run strategy. This is where the trade is entered and no TAKE PROFIT level is input so you close the trade when you feel comfortable with what you achieved and for a day trader as i am at the end of the day. So if the market moves 200 PIPS during the session you benefit form every pip
Indices should be traded on a momentum bases rather than relying on technical analysis fully this is so because stocks move on financial data mostly not too say technical analysis is useless but it also has a role to play when trading. Pre market news releases are crucial when trading indices as it give a glance as to what will happen during the day whether it will go up or down with that said goo luck in your trading
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