Dow Jones Futures

A Note on Dow Jones Industrial Average – Essential Tips for Bulls!

The Dow Jones Futures is the most popular and recognized stock index. Dow Jones Industrial Average stock index consists of a diversified portfolio of nearly 30 high quality blue chip stocks. Widely known big companies such as Johnson & Johnson, Coca-Cola, Hewlett Packard, Proctor & Gamble, and IBM are the few stocks of DJIA.

How to get into DJIA contract?

The cash value of DJIA contract is ten times more than that of its Dow Index. For example, if the value of the contract is $100,000 means the Dow is at only 10,000. (10,000x$10=$100,000). In case, if the cash value of E-Mini contract is $5, then the Dow Index is 5,000, then value increases to 5,000x$5=$25,000. So, Dow Jones Futures contract value escalates to $10 for every move while E-Mini contract increases by $5.

Less Money with More Value

It is easy for an individual to participate in DJIA stocks with a simple deposit of $5,400, instead of investing $100,000 on stocks outright. It is exactly 14 times less than any other contract. With maximum leverage, it enables you to produce substantial amount of profit with less loss.

Good appreciation comes from the Investor

As Dow Jones futures contract fulfils the needs of many investors, it receives wide appeal from them. It is useful for speculative gain as well as investment portfolio. If you learn the different trading strategies, you can easily accomplish your goal with a minimalless investment. Another additional benefit from this DJIA future contract is trading can be done round the clock, without worrying about the closure time periods of stock market.

Few Tips for the Futures Traders

In order to buck the trend in stock market, the traders or brokers should be individualistic and should have natural instincts. The personality of a person should be of a special kind, and not “one of the crowd” type.

Money Management Tactics in Trading

- Avoid Over trading.
- Ascertain your profit goal and learn to position yourself whenever the market goes against you.
- Invest more capital if you want to trade more markets.
- Always trade with trend and try to avoid the top and bottom valued stock purchase/sale.
- Do not trade in volatile contracts.
- Prior to trade, weigh both risk and reward. Do not hold the risk for a long time.