NASDAQ 100 Index
NASDAQ100 is an stock index that include 100 of the largest companies shown in NASDAQ Indices exchange market that aren't in the financial sector. The calculation of this Stock Index is based on a weighted component of the market capitalization of displayed 100 securities. The 100 companies illustrated on this index are revised quarterly.
The 100 firms used to calculate this stock index aren't necessarily based in the USA: foreign international corporations are also included as long as they are displayed & shown in NASDAQ100 Stock Exchange.
NASDAQ100 Chart
NASDAQ100 chart is illustrated and shown and illustrated above. On the above example this Stock Index is named USA 100CASH. As a trader you want to find a broker that provides NASDAQ100 chart so that you as a trader can begin to trade it. The example That is illustrated above is that of NASDAQ 100 Indices on MT4 FX Platform Software.
Other Data about NASDAQ100 Indices
Official Indices Symbol - QQQ:IND
The 100 component stocks that makes up the NASDAQ 100 Stock Index are calculated using a weighted component for each stock. The component stocks and weighting for each Index is revised quarterly.
Trading System for Trading NASDAQ100 Stock Index
NASDAQ100 Stock Index method of calculating makes it more volatile & hence there are more wide swings in the price movement of this Stock Index. The index has got a weighting factor for each Index included on this stock index. Although this stock index in general moves upwards over long-term because American economy also shows strong growth.
As a stock index trader you want to be biased and keep on buying as the index heads & moves upwards. When the America economy is performing good, the stocks that makes up the NASDAQ 100 index will keep gaining in values & thus this stock index is likely to keep heading in an upwards market trend. A good stock index trading strategy to trade this Index would be to keep buying and buy the dips.
During Economic Slow-Down and Recession
During the economic slowdown & recession times, corporations begin reporting slower revenues and lowers growth projections. It is due to this reason that investors begin to sell stocks of companies that are announcing and reporting lower profits & hence Indices tracking these specified stocks will also start and begin to move downwards.
Therefore, during these times, market trends are more likely to be heading & moving downwards & you as a trader should also adjust your strategy accordingly to suit the prevailing downward trends of the index that you're trading.
Contract Specifications
Margin Requirement for 1 Lot - $30 dollars
Value per Pips - $0.1
Note: Even though general and overall trend is generally moves upwards, as a trader you've got to consider and factor on daily market price volatility, on some of the days the Indices may move in a range or even retrace & retracement, the market pullback/retracement move might also be a substantial one at times & therefore you as a trader you need to time your trade entry strictly using this trading strategy: Stock index trading strategy & at same the time use proper/appropriate money management methods and guidelines just in case of more unexpected volatility in the market. About indices equity management guidelines courses: What's equity management and equity management strategies.
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