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This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Trade Indices Like a Pro

What is more interesting: sitting and waiting on one company, putting your eggs in one basket and hoping that the results they release will see your shares rises? Or investing in the world’s major share indices, such as the UK 100 or DAX30, and being able to trade 24 hours a day, 6 days a week, with an option to trade in both directions and with lower margin requirements than equities?

So why would you chose to trade indices with Accendo Markets?

Our goal is to help you trade indices when you want and how you want, while at the same time giving you all the up-to-date information we have, so you can make the best and most profitable investments.

The reason we feel we are in a league of our own when it comes to helping our clients with trading in indices is because:

  • Our “Morning Report” lets you know how the indices have traded overnight and why
  • Our “Daily Calendar” gives you up-to-date information on potential market moving events that will occur the following day and showing you live updates on whether data has been better or worse than expected
  • Our “UK Index Focus” publication, shows you the UK flagship index over four different time horizons and identifies potential support and resistance for long-term, short-term and day-traders. This gives you the benefit of looking at the other indices we offer and to analyse them in the same way.
  • Finally our “Week Ahead” report, sent out every Friday, gives you all the information you will need about the major data, company results and ex-dividends that could impact the index for the following week

So how do you go about setting up a trade?

For first timers or experienced traders it couldn’t be easier. Here is an example of how a possible trade using Spread Betting could go;

  • You have been looking over our free research for a few weeks and you believe the UK Index will rise over the next hour/day/week/month.
  • So you decide to put on a trade of £1 per point on the UK Index going long (going up)
  • If the Index rises by 100 points you could potentially make £100 from a minimal investment of just £1.
  • Consequently, should the Index drop by the same amount you could potentially lose the same amount.
  •  However, at Accendo Markets we can put on a stop-loss on your trade of 20 points, which means that if the stock drops by 20 points, the trade is automatically closed minimizing your loss.
  • We can also put a limit on the profit your stock makes, meaning if the limit is put at 20 points, should the Index rise by 20 points, the trade is closed and you have made £20. This is often used when people fear the index my rise only by 20 points before finding a bit of resistance and then potentially falling off.

So to trade indices like a pro, all you would need to do is:

  • Look over our research and when you feel confident that you have enough knowledge
  • Put £1* per point on the UK Index going long
  • Put a stop-loss on 20 points away*
  • Put a Limit order on 30 points away*
  • Execute the trade

*note: these are example figures of how to trade, how much you invest and what level you put your stops on is a personal preference

What other tools can you use to become a pro index trader?

There are many other tools you can use to help you when it comes to investing in indices as well as several technical indicators, some of the main ones being; Support and Resistance, Moving Averages and Momentum.

Support and Resistance is the belief that there are 4 types of investors and the movement of a stock is dependent on how they are feeling at certain points during a trade.

Moving Averages which is observed as the average points over a period of time where the stock will rise and fall. When these points are measure it is believed that they will develop a wedge shape in the stocks form guide, showing how the stock will eventually reach a mutual point from its rise and decline.

Momentum is the measuring the time between point X and the same price 12 days before showing when the underlying power behind an up/down move is accelerating or slowing. This can help warn you of potential turning points of the trade.

Finally, Accendo Markets offers you the chance to test out how trading with indices works by making use of our free Spread Betting demo account, so you can see what it is like to be a trader without the risk of losing real money with no obligation to sign up and no fees to pay for using it.

When you feel confident enough to start investing your own money, sign up Accendo Markets you can make use one of the best Spread Betting platforms on the web, as well as the most up-to-date, professional research, created several times a day by our in-house analysts and sent directly to you, for free.

For more information, please visit http://www.accendomarkets.com/our-products/spread-betting/

Alternatively, open a FREE demo by CLICKING HERE

If you are confident, feel free to open a live account by CLICKING HERE 

 

 

 

 

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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