Strategy for Trading NIKKEI 225 Index
The NIKKEI 225 represents the top 225 active stocks on the Japanese market. Nikkei 225 is volatile compared to some other indexes like the Germany DAX 30 that only comprises of 30 companies. The Nikkei trading index is very volatile and has more oscillation than other stock indices. Hence, when trading this pair, it is wise to factor in its volatility in one’s trading strategy.
A good Nikkei trading strategy and signals are to be patient and look for good entry to buy the dips as its upward momentum usually seem to be predominant. The Japanese economy has a great influence in the direction which Nikkei 225 follows as a result of this, if the Japanese economy is booming, Nikkei 225 trading will be bullish and vice versa.
In trading the Nikkei, it is important to understand the Japanese economy. Japan is a country whose economy is dependent on the export of goods and products, and the majority of these exports go to the United States.
Hence, the reason for the direct correlation between the Nikkei and the U.S. stock market. The United States is the major partner to Japan regarding trade and as such if the U.S. economy is doing well, the Japanese economy will do well and vice-versa; having a grasp of this Nikkei trading strategy is important.
Fundamentally, it has been historically proven that the performance of the Nikkei 225 is a reflection of the performance of the Dow Jones index on the previous trading day. Knowing this fact alone can help traders rake in profit from Nikkei trading.
Fundamental data and news that affects the Prices of Nikkei 225 index include Non-farm payroll, U.S. retail sales, U.S. GDP report, Manufacturing data, and consumer sentiment reports among others.
Knowing all these help us to generate Nikkei trading signals for our subscribers. We try as much as possible to find a good entry at market open having an idea of how the Dow Jones performed a day earlier. Trading Nikkei 225 at market open can be much more profitable than trading the market close.
Nikkei Trading Signals
As explained earlier, understanding this fundamental analogy is the basic indicator that helps us decide whether to go long or short on Nikkei at Nys Trading.
Understanding this makes the job easier, the next thing is finding the right entry price, in the trading accurate entry is vital to trading success. What we do is find a good entry and then we send the trade commentary and charts to corroborate our decision. We send the entry price, stop loss, and take profit to our signal subscribers.
Also, if there is any need to update our opened Nikkei trading signals, we will send details to our members and the reason for the alteration will be stated to enable our subscribers to have that confidence in us that we know what we are doing and not just gambling.