The Smart Way to Trade Indices

If you’ve only just started trading online, many experts believe that it may be more prudent for you to trade indices instead of trading stocks of particular companies.
An index is used to measure a particular segment of the stock market. For example, the FTSE 100 is an index that measures the top companies listed on the London Stock Exchange. Other indices include the Dow Jones, the S&P 500, NASDAQ, Hang Seng, and Nikkei.

The Advantages of Indices Trading
Some experts say that focusing on indices trading is already a smart thing due to the following advantages:
There’s less technical analysis involved, and you don’t have to screen stocks for fundamental data. That’s quite a relief for a lot of non-professional traders who are only trading online to supplement their income. You can save a lot of time because you don’t have to screen hundreds of stocks to find the right company to invest in, and you don’t have to analyze financial reports.
There’s better leverage than when you trade stocks on margin.
Trading indices involves high liquidity.
Choosing an Established Online Partner
So if you are trading online, what’s the smart way of doing things if you’ve decided on indices trading? Essentially, it all boils down to one thing: you need to open an account with an online trading company which can provide you all you need.
The online company in which you plan on opening an account should have the following characteristics:
It’s highly regarded in the industry. Some of these companies have decades of history in dealing with the stock market, and they’re a better choice than any Johnny-come-lately.
Your funds are well-protected. For example, your money should be in separate bank accounts so that your money reverts back to you should the company find itself in trouble. The company should be able to provide full details on how your money is protected.
It should offer quality service such as a helpful customer service department, a reliable trading platform, and even apps that let you trade on your mobile devices.
The Need for Accurate and Timely Information
You also need access to accurate and immediate information about the stock market. Without such information, you are basically making trading decisions blindly, and that can have disastrous consequences. Only with accurate info can you make forecasts about trends so you can make some real money.
So if you’re looking for an online trading partner, make sure you can get the following information:
Accurate charts. You should be able to monitor the movement of the index you are tracking in real time, so that you can spot trends quickly and more accurately.
The latest news.

You can’t just rely on cable news to give you what you need to know when you need to know them. However, some companies may offer you online news straight form their trading floor.
Expert analysis. You can’t do everything yourself, and sometimes it can be quite convenient if you can pick the brains of experts to see what they can make out of all these pieces of information.
With the right trading company as well as proper and timely information, you can begin your foray into indices trading the smart way, and trading online becomes a much more likely medium for profit.

Leave a Reply


Symbol Bid Ask Spread
EURUSD 1.22950 1.22970 2
GBPUSD 1.39690 1.39720 3
USDCAD 1.26430 1.26460 3
USDJPY 106.850 106.870 2
USDCHF 0.93590 0.93620 3
AUDUSD 0.78360 0.78390 3
NZDUSD 0.72910 0.72960 5
EURGBP 0.88000 0.88030 3
EURCHF 1.15090 1.15120 3
EURJPY 131.380 131.410 3
AUDJPY 83.730 83.780 5
GBPJPY 149.260 149.320 6
XAUUSD 1328.76 1329.16 40
XAGUSD 16.516 16.566 5