The Dow Jones index or DJI 30 is one of the three most important indicators in the world. Therefore, working with the Dow Jones gives us the opportunity to take advantage of the movements of one of the most powerful financial markets.
Often people think that the Dow Jones index is of which country stock exchange. The answer is America.
The Dow Index Industrial is a benchmark of the US financial market. Like the important Hangsung Index on the Asia stock exchanges, the DJI 30 is weighed by the price of the shares that make up it. This means that companies that have higher top values have the greatest weight in the index, regardless of their true value to the economy. In this post we have discussing what is Dow Jones Index & Which country owns Dow Jones.
Table of Contents
What is Dow Jones Index?
Created by Charles Dow in the late 19th century, the Dow Jones Industrial Average (DJIA) is one of the most traded indicators on the US stock market. Given the longevity of the Dow Jones, it can be said that it reflects not only the price of large industrial companies in the US market, but also the growth of the US economy during the last century.
It was initially composed of the values of 12 stocks. After that, the shares gradually increased in it. As a result, by the end of 1920, it had shares in a total of 30 companies. When it had 30 companies, it was known as Dow Jones 30, as we know it today. Of the 12 companies that were at the time of the index’s birth, none remain after the departure of General Electric in the summer of 2018.
Anyway, the truth is that the Dow zone index is a clear thermometer for the health of the US economy:
- If the US economy grows, DJI goes up 30.
- ️If, conversely, the US economy is going through a crisis, the Dow Jones index falls.
- Some of the major companies that make the DJI 30 are Coca-Cola, Walt Disney, General Electric, and McDonald’s.
- Both the structure of the Industrial Dowjones index and the weighting of its capitalization can change.
- The structure of the Dow Jones changed on August 31, 2020, as a result of a 4 to 1 split of Apple’s stock, a movement that significantly reduced the weight of the technology sector in the weighting of the index.
- From that moment on, Salesforce.com, Amgen and HoneyWell were added to the index, replacing Exxon Mobil, Pfizer and Raytheon Technologies.
- This is the third time in this century that the Dow Jones has swapped all three of its components at once. The first was in 2004, when Pfizer, Verizon and American International Group entered. The second was in 2013, which included Goldman Sachs, Visa and Nike in the index.
Dow Jones Investing Alternatives
There are three main options for investing in the Dow Jones:
Dow Jones Share Price Buy/Sell Process
To buy CFD DJI30 with Admiral Markets all you need to do is follow the following steps:
- Log in to your Admiral Markets account via MetaTrader4, MT5, WebTrader or the mobile application.
- In the ‘Market Watch’ tab, click on the word ‘Symbol’ with the right mouse button.
- Write the index mark , in this case DJI30.
- Then double click on ‘DJI30’.
- Right click once the dialog box is open and select ‘Chart Window’.
- When the graph appears you can choose your favorite lot.
- Lastly, ‘Trade with one click; Click ‘By’ or ‘Sell’ with the shortcut.
Trading Styles on Dow Jones Live
We have a variety of trading style options for trading the Dow Jones 30. Some of them are:
1. Very Short Term Trading: Scalping
2. Short Term: Day Trading
3. Medium Term: Swing Trading
Scalping and Day trading
Scalping and day trading both allow us to take advantage of the price movements that occur during the stock session in the US market. For traders who prefer to get results quickly and quickly, scalping and day trading allow trading in a very short amount of time, on the same day and before the session is closed. Of course, this type of trading requires monitoring the trades while sitting in front of the screen.
However, care must be taken as the results obtained in a short period of time may be good, or they may be bad. This will depend on several factors such as trader training or market conditions. To limit negative results as much as possible, it is advisable, whatever the trading style, to maintain discipline at all times, and try to learn from your mistakes without losing your nerves. Only then can we improve and gain experience.
For those who prefer to work in a more relaxed and calm manner, and for those who have little time, swing trading is an option to consider. The swing trader does not need to be in front of the screen constantly as this trading style seeks to find trading opportunities over a long period of time.
Do you want to practice some trading strategy? So we would advise you not to put your money at risk. Instead try trading with virtual money with a demo account. Then when you are confident, you can open a live account and trade with your money.
Simply click on the button below to start trading with Admiral Markets!
Best Time to Trade the Dow Jones Stock Index
By the time the US session begins, the Asian markets close approximately two hours before, but in Europe it is still daylight and the European trading session is still open. This is when trading volumes are most important.
Once the activity in the US markets is over, there may be a reduction in trading around 10 pm till the opening of Asian markets. It is important to know that the DJI 30 CFD Index is available 24 hours a day from Monday to Friday, which means the maximum trading opportunities are available.
To this is added the fact that the American economic calendar is very rich in publications, which does not cease to impress DJI 30. This allows us to select the moments that we dedicate to trading if we choose to do it during publication hours.
Publications from the companies that make up the Dow Jones stock index have a decisive influence on the price of the index, notably American Express, Apple, Boeing, Caterpillar and Chevron.
In addition, the following publications in the US also have an impact on the Dow Jones:
- ️ Fed interest rate
- ️ As the Fed
- ️ Unemployment rate
- ️ Balance of trade
- ️ NFP or Nonfarm Payroll
- ️ Inflation rate
- ️ GDP growth rate
- ️ Retailing
- ️ Ordering durable and industrial goods
- ️ Business sense
- ️ Consumer confidence
Correlation of Dow Jones Index Live and other tools
The image above shows the correlation between the Dow Jones stock market index and other important markets as of January 31, 2020. Over the last 50 days it was discovered that the Dow Zone live 30 CFD was highly correlated with the following indicators:
|SP500 with a score of – +98
|NQ100 with a score of – +96
|DAX40 with a score of – +83
|Gold with a score of – +83
|Bitcoin cryptocurrency BTCUSD with a score of – +65
10 Year Quote on the Dow Jones Stock Market Index
If we look at the Meta Trader 5 Admiral Markets table, we can verify that the performance of the US Dow Jones stock index is as follows:
- January to July – 11.97%
- Close of 2021 + 18.73%
- 3 year variation + 37.13%
- 5 Year Variance + 61.87%
- 10 Year Variance * +161.84%
Trading Dow Jones with Admiral Markets
Let’s see why? it has many advantages
- You are protected by major regulators
- Our customers are protected with negative account balance protection policy
- Customer funds are held in segregated accounts
- Leverage can be up to 1:20 for retailers and up to 1:500 for professionals
- You can get access to our volatility protection tool
- Speed and convenience with one-click operation, in seconds
- You can trade from 0.01 to micro lots available on the CFD index
- Accounts with Meta trader 4 and Meta trader 5 with the best trading platforms, completely free
- There is no minimum difference for Stop Loss and Take Profit
FAQ(What is Dow Jones Index?)
Is the Dow Jones worth investing?
Over the 25-year period, the Dow returned an average 10.3% per year, 0.8 percentage point per year better than the S&P. On a $10,000 investment
What is the highest Dow to date?
the Dow’s all-time high at market close stands at 36,799.65 points—reached on Jan. 4, 2022.
Which country owns Dow Jones?
Dow Jones & Company, Inc. is an American publishing firm owned by News Corp and led by CEO Almar Latour.