Dow Jones 30 Market Analysis

How to Trade the Dow Jones30 Index

Also known as ‘the Dow’, the Dow Jones Industrial Average index is the oldest stock market index in the US and worldwide. Founded in 1882 by Charles H. Dow, the DJI is a stock market index of 30 blue-chip stocks listed in the United States.

The price-weighted index tracks some of the world’s largest companies by market capitalization listed on the NASDAQ and NYSE exchanges, including Microsoft, Apple, Walmart, Chevron, Coca-Cola, Nike, and Intel.

To trade the Dow Jones 30 index, you must find a brokerage service that offers you access to derivatives contracts that track the DJI market performance. This is because there’s no option to trade the DJI index directly, as there’s no such instrument. Instead, you can trade the US30 index through other methods that include spread betting, ETFs and funds, options, and CFDs.

CFDs on the Dow Jones 30 index enable you to speculate on the price of the index without having to own the asset. In other words, a CFD contract is an agreement between the buyer and the seller to exchange the difference in the asset’s value between the opening and closing prices.

To start trading the Dow Jones 30 index, follow the steps below:

1. 1. Open a forex trading account with SwitchMarkets, our partner broker
2. 2. Open an account with a VPS service provider to protect your trading account from internet disconnections and slippages.
3. 3. Choose the ideal position size and leverage ratio that suits your trading style
4. 4. Utilize your trading strategy to identify entry and exit opportunities
5. 5. Open your first trade by clicking on buy or sell
6. 6. Consider risk management tools such as a risk-reward ratio, stop loss, and take profit
7. 7. Monitor your trade and close your position when getting a signal from your preferred trading strategy