You can trade indices using different timeframes. Index funds are an attractive long-term investment because, despite fluctuations, they offer a solid rate of return (around 10% annually) if you hold them for years or decades.
You can also use futures or indices CFD trading for short-term speculation. Even though most major indices move up in the long run, they experience significant drops and rises in shorter timeframes. Traders use price action and technical analysis or trade around news reports and economic announcements to take advantage of short-term movements.
