Hello All, I'm very much a noob at this, I was going to start of trading Indexes through my bank, yet they do not offer this product so I wanted a little advice. Basically I want to create a share ISA that tracks a company that is most influential in an index like the DAX 30.
What do you think is better, getting a broker to trade indexes or an ISA with my bank? Could I still get some exposure to an index, by trading shares?
I might do that if I understood better exactly how indexes work. The DOW Jones industrial average is just that, an average. But what about NASDAQ, DAX 30 etc? How are they calculated, if some of the companies in an index have greater effect on the Index price then I could just trade the companies that have the biggest impact on each Index, but without knowing how an Indexes' value is calculated, then how can I know which companies are having the biggest impact?! Whether it is positive of negative.
If I knew which companies were the most important then I could just invest in those and take advantage of an ISA wrapper?
What do you think is better, getting a broker to trade indexes or an ISA with my bank? Could I still get some exposure to an index, by trading shares?
I might do that if I understood better exactly how indexes work. The DOW Jones industrial average is just that, an average. But what about NASDAQ, DAX 30 etc? How are they calculated, if some of the companies in an index have greater effect on the Index price then I could just trade the companies that have the biggest impact on each Index, but without knowing how an Indexes' value is calculated, then how can I know which companies are having the biggest impact?! Whether it is positive of negative.
If I knew which companies were the most important then I could just invest in those and take advantage of an ISA wrapper?
