Dax trading can yield great profits- for both professional traders and amateurs- but the key is to have a solid strategy in place. Knowing what to avoid, what works and what doesn’t work will go a long way in helping you to win at DAX trading.
The most important thing to bear in mind with DAX trading is that most trading actually takes place during the first and last hours of trading. This means that it is therefore wiser to only focus on these times (and the first hour specifically).
Throughout the day, the DAX market usually trends less than 20% and the only time that it really moves sharply in terms of volume is during the first hour. That being said, if you would like to make a significant profit on the German stock market, you would need a lot of money to invest initially. This is because a high volume is required to enter trade. This is often a problem for amateur traders but if you can come up with a large lump sum, you may just be in luck!
When the DAX opens first thing in the morning, the first 5 minutes often show several spikes in terms of both volume and price as the stocks are gapping from the previous day’s close. This is therefore the most volatile time of the trading day and it is probably best not to trade during this short time frame.
While the majority of lucrative DAX trading occurs during the first hour of the morning, you can still catch a few good deals during the rest of the day, most notably between the hours of 11 AM and 2 PM. In a nutshell, DAX trading is all about hedging your bets!