The Dow price typically provides traders with a high degree of liquidity; it responds well to the volatility of the American markets, to technical analysis and to benchmark support and resistance levels, and what traders consider important “psychological” levels. (e.g. 20,000).
Traders also enjoy trading the Dow because they are not just focused on one individual share. They are trading a “basket” of US stocks and so are protected from any one company’s volatility while maintaining exposure to the wider US stock market.
There are several ways to get exposure to the Dow Jones index . At the RoboMarkets Blog, you can learn all about how to invest in dow jones. All have their advantages and disadvantages, so you can choose the one which suits you best.
