
Dow Jones index is one of the most traded indexes on the market.
It represents the blue-chip companies in the US, and it turns out to be cheaper for trading compared to the regular stocks that are inside.
In this free video, you will learn more about the companies that are inside the Dow Jones index and how the index is formed.
This video is part of our Stock Market course + 10 Dow Jones EAs:
https://eaforexacademy.com/courses/algorithmic-trading/stock-market-course-10-dow-jones-eas/
In this course, you will learn how to trade the Dow Jones index with Expert Advisors even without programming skills. This is possible with a program called EA Studio strategy builder.
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Dear traders, this is Petko Aleksandrov. In this lecture, I will introduce you to Dow Jones.
And for the very beginner traders I will try to explain it very simply, what is Dow Jones index?
This is a basket of 30 considerable companies in the United States, or in other words, we can say that Dow Jones consists of 30 of the largest public companies in the United States.
Some of the companies that are listed in the Dow Jones index are Apple, we have Coca-Cola, the Goldman Sachs Group, Johnson & Johnson, JPMorgan, Nike, Proctor & Gamble, and many others.
And some of those are traded on the New York Stock Exchange, and some are trading on the Nasdaq. And this index was first calculated in 1896, so it's ancient. And during this time, there were fewer companies, not 30, but they just increased with time.
And the stocks with higher share prices are given greater weight in the index.
But when we are trading with Expert Advisors, it really doesn't matter so much, which are the companies.
The thing is that Dow Jones is very volatile, which makes it suitable for Expert Advisors.
And this is one of the reasons I prefer to trade Dow Jones and not these individual stocks. Because I can trade Apple, I can trade JPMorgan, or visa, or any other stocks with Expert Advisors. But I prefer Dow Jones index. And there is one significant reason which I will share with you in the next lecture.