The DAX, Germany’s stock index, has in recent years proven to be a highly popular market to trade due to the potential profit-making opportunities it promises. What was once a seemingly elusive market to trade for foreigners, has now become a relatively easy one, once you know how.
If you are a move DAX trader, you should be aware that there are special times of the day when trading is much better than others. For instance, the afternoon following a public holiday is generally considered far more reliable than the morning period. Then, Mondays, especially Monday mornings are not good trading days as the markets are stabilizing after the weekend’s trading and news. A Friday afternoon is never a wise time to trade as volumes are low because many traders have already left for the weekend. In contrast, Tuesdays, Wednesdays and Thursdays are prime trading days unless a statement has just been released from the Federal Bank or there have been significant earnings by a large company.
The good news is that any one can trade the DAX and, from a technology angle, all you need is a computer and an internet connection. Trading can therefore be conducted from anywhere in the world.
To effectively trade the DAX, a concept by the name of the Global Handshake may be used. Devised by the DTI, this propriety calculation takes into account all the major European cash markets and records the percentages, either up or down in order for you to calculate an average, up or down, for the whole of Europe. This figure can then be used as a predictor to effectively trade and assist you in placing the odds in your favor.
By putting into practice the above tips, you will increase your trading accuracy and reduce your risk, making you a great DAX trader!
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