EDUCATION

Nas100 Strategy

The Nasdaq 100 Index is a modified market capitalization index composed of the 100 largest non-financial companies listed on the Nasdaq Stock Exchange. Nasdaq trading uses basic or technical analysis to determine the price level at which to start trading. Traders can place bets on which direction the price will go and stop profits or losses to manage risk. This article describes the basic trading strategies for the Nasdaq 100 Index, applicable to traders at all levels.

Why Nas100?

  • The Nasdaq 100 Index is one of the most popular indices in the world. There is no shortage of technical and fundamental analysis.
  • Crisp technical graphics mode provides clear inputs and outputs.
  • The Nasdaq Index provides traders with more liquidity, thereby narrowing spreads with lower entry and exit costs.
  • The ability to expand your investment portfolio
  • There are many generic brokers to choose from.
  • You can also take advantage of in-depth research on market trends.

Trading strategies on Nas100

It is important to be aware of different Nas100 strategies to make sure your trades make it to the top.

  • Technical analysis

Traders use technical analysis to analyze records for buy and sell signals. Technical analysts use indicators to observe and record current market trends, fluctuation of sentiments, or potential recovery patterns. Apart from the indicators, traders look for market opportunities using price patterns such as support and resistance, ascending triangles, moving channels, Elliott waves, and more.

  • Fundamental analysis

Fundamental analysis relies on trading based on the newest releases. Many fundamental variables affect the price of an index when trading the Nasdaq. Traders need to understand these variables and their potential impact on the index. These variables cover everything from macroeconomic variables to the underlying composition of the index.

Points to consider when trading in Nas100

  • Limit your exposure to less than 5% on all open trades.
  • Set your risk / reward ratio before entering a trade. It is important that there is a balance of risk and reward. 
  • Avoid trading until important financial information has been released. Most economists know they can cause spikes in volatility, so it is better to wait for market stabilization before trading.
  • Write down all your trades for future reference. This will help you identify your weaknesses and address them.
  • Don’t act when you are emotional, tired, or bored. Trade only with proper research and analysis. Being confident in your trade is the key.
  • Choose a trading time that suits your goals.

Trading times of Nas100

Nasdaq 100 futures can be traded on the Chicago Mercantile Exchange (CME), in the following time periods:

Sunday to Friday from 6:00 pm till 5:00 pm EST, with trading stop at 4:15-4:30 pm EST and daily standby times Monday through Thursday from 5:00 PM till 6:00 PM EST.

There are ETFs that track the Nasdaq 100, such as the QQQ Invesco Trust (QQQ), which are listed on the Nasdaq exchange.

  • Pre-Market Trading Hours from 4:00 a.m. to 9:30 a.m. ET
  • Market Hours from 9:30 a.m. to 4:00 p.m. ET
  • After-Market Hours from 4:00 p.m. to 8:00 p.m. ET
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