Everywhere people talk about Stock Investing or the market, this market is the index. Examples of indexes are the Dow Jones Industrial Average, NASDAQ, and S&P 500.
An index refers to the statistical measure of changes of stocks representing a part or portfolio of the entire market. Index Trading therefore involves investing into these stocks. It can be through brokers or over the counter.
Index process keep fluctuating with time and are affected by the demand of the market other price determining factors include:
-Large or cooperate investors
-Launch of products by a company involved
As an index investor, all these are factors to watch and follow to know when to buy, sell or hold. Index trading, unlike other forms of trading like the binary options, is not a day’s or short term activity. It is profitable when done for long term for example 10 years. To get the best out of trades and reduce the work of keeping up with all what is trending in the index market, people just subscribe to services that offer advices or directions after they do their own analysis. They ca be correct or almost. But as a speculative trade activity, it is risky.