Sunday, July 20, 2025
  • Login
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us
No Result
View All Result
GoTradingAsia
No Result
View All Result

Market Indexes Effect on Your Investment

Lisa Ramadhani by Lisa Ramadhani
6 years ago
in Forex & Market
Market Indexes Effect

You may have heard the word ‘index’ mentioned in many financial media. Market Index represents the pulse from the market. The information they provide can give you meaningful insight to make better investing decisions. Thus, here is market indexes effect on your investment.

The explanation of index number

There are various ways to calculate index numbers. But, it always represents a change from the base or original value. While the base value itself represents the average price of weighted-stocks from the total stocks. That price will later make up the index.

If we take a look at the importance level, basically the index number is less important than its percentage change over time. The movement of that percentage will tell you the performance of an index.

Yet, to know the changes, you need to know the index number first. It is calculated each day on an ongoing basis, during the stock market’s open hour. The aim of that index will give a direction for the market represented by the index.

RelatedArticle

Price Action Trading Strategies Candlestick Patterns

How Geopolitical Events Impact Forex Markets

How Math Powers Forex Trading Strategies

4 Reasons to Opt for a Local Forex Broker

What traders need to be cautious is that the stock index, even the ones quoted as totally representing the total stock, will not do that. Every stock index only reflects parts of the actual market.

That happens since each index normally only holds stock from certain sectors or categories within the market.

Also read: How Long You Should Hold your Stock in Day Trading Position?

How to read it?

Every time you analyze and interpret changes in an index, you need to consider these factors.

It does not represent the total market

Even when something happens in the world’s biggest index, you have to stay focus on your stocks and your targets for evaluation. In a day that all of those three indexes are down, you still can see some stocks still set a new high.

Indexes react to actual trades

You may believe what people told you in media, that stocks move based on emotion. The truth is, index movement requires actual trades, not just feelings.

Focus on time by time

You have to always focus on day by day and hour by hour clicks of an index. Those clicks make for a good way to eat up valuable time.

It provides a better historical perspective

Rather than forecasting, indexes give a better historical perspective. View on a long historical period can be more helpful when your research on-trend.

Tags: effectforexInvestmentmarketmarket indexes
Lisa Ramadhani

Lisa Ramadhani

Reading and travelling bring us the opportunities to understand the complexity of this world.

Related Posts

Price Action Trading Strategies Candlestick Patterns

Winning Strategies, price action trading strategies, chart pattern recognition, isk management techniques in forex trading. Mastering forex trading. Introducing Broker Forex Program. A businessperson in a suit holding a glowing blue sphere with the words 'FOREX TRADING' displayed prominently in the center. The background features various financial charts and data screens, symbolizing the digital and analytical nature of forex trading.
by oney
October 29, 2024

Price action strategies offer a streamlined and effective approach to analyzing market movements in the realm of trading. By focusing...

Read more

How Geopolitical Events Impact Forex Markets

Forex Introducing Partner, local forex broker, building confidence as a forex trader
by oney
October 17, 2024

Geopolitical Events and Their Influence on Forex Markets Introduction Geopolitical events have a profound impact on the forex markets, influencing...

Read more

How Math Powers Forex Trading Strategies

Disciplined trading mindset, technical analysis gold prices. Man counting the money, Math in forex.
by oney
October 2, 2024

Trading in the Forex market can be quite challenging both for novice and experienced traders. Many strategies and systems have...

Read more

4 Reasons to Opt for a Local Forex Broker

Forex Introducing Partner, local forex broker, building confidence as a forex trader
by oney
October 1, 2024

The election of Indonesia’s local forex broker or international forex broker is often confusing for traders. Both of them have...

Read more
Load More
Next Post

Robert Shiller Explains How Narrative Economics Works

Trending Issues

  • start-up

    5 Facts in the Story of a Start-Up KDrama (Part 1)

    0 shares
    Share 0 Tweet 0
  • Everyone can Make Money while Sleeping!

    0 shares
    Share 0 Tweet 0
  • Malaysian PM to side with China rather than the U.S.

    0 shares
    Share 0 Tweet 0
  • Cristiano Ronaldo and His 6 Successful Businesses

    0 shares
    Share 0 Tweet 0
  • Stock Trading 101: Defining a Stock Index

    0 shares
    Share 0 Tweet 0

Get the latest market news and trading tips to your inbox daily, subscribe now !

Topic

  • Asia News
  • Asia Trade
  • Bonus+Promotions
  • Broker News
  • Business News
  • Cryptocurrency
  • Currency Analysis
  • Finance News
  • Forex & Market
  • Forex Tips
  • Hot News
  • Investment Tips
  • Learn to Trade
  • Market Analysis
  • Politics Issue
  • Reviews
  • Social Media
  • Stock Analysis
  • Stock Market
  • Stock Trading Tips
  • Technical Analysis
  • Tips
  • trading strategy
Go Trading Asia

Go Trading Asia covers the latest in Business and Economic News and Market Analysis, with the aim of Providing Readers with the knowledge and tools to make better informed financial decisions.

  • Contact us
  • Privacy Policy
  • Disclaimer

© 2021 Go Trading Asia.

No Result
View All Result
  • Awards
  • Forex
  • Crypto
  • Stocks
  • Education
  • Broker Directory
  • Contact us

© 2021 Go Trading Asia.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In