Understanding The Daily
Stock Index Chart...

A Daily Stock Index chart is often the main indicator many traders and investors use as the gauge by which to buy and sell the various indexes they trade.

Trading a Stock Index instead of individual stocks has many benefits  -

• You don't have to worry about one any one stock taking a huge dive and with it your entire account balance

• Indexes tend to have lower volatility that many Stocks, making them easier to trade for some traders

• It's extremely easy to go short an Index using futures contracts

• You can use Index futures and options to hedge your Stock portfolio

So, what does a daily Stock
Index Chart look like?

Here are some examples of trends from recent markets to show you what to look for -

This first daily chart is of a run-up in the Dow Jones Index...

It wasn't a particularly strong trend, but there was no denying that it was up - higher lows and higher highs. A classic up-trend.

Our next daily Stock Index chart is of the S&P 500...

Again, a classic up-trend that continued for many months.

Next we have a daily chart of the Nasdaq Stock Index...

This time, we have a consistent down-trend that no doubt resulted in a good profit for anyone short at the time.

And finally, we have a daily chart of the Russell 200 Stock Index...

Another great up-trend. These are by no means strongly trending Stock Indexes, but there were profits to be had by taking a position and riding it as far as possible.

The key question is, how do you know when a Stock Index is going to trend like this and get on board?

What does a high probability trade setup look like?

And what if trading a Stock Index off a daily chart is too big for you or your account balance?

Trading off a shorter timeframe could be the answer.

To get you started on your way to becoming a professional Stock Index futures trader, grab a subscription to our brand new 5 day Futures Trading Mastery Course.

You'll learn the 5 key ingredients to successful trading and how to apply them to your preferred futures market no matter what your current level of skill.

It's easy to subscribe. Just put your First Name and Primary Email Address into the form below and click on the Free Instant Access button.