What is NASDAQ 100 Trading Strategy? - Guide to Trade NASDAQ 100 Index
NASDAQ 100 Chart
NASDAQ 100 chart is illustrated & shown above. On above example this Index is named US 100CASH. As a trader you want to find a broker that provides NASDAQ 100 chart so that you as a trader can begin to trade it. The example Which is illustrated above is that one of NASDAQ 100 Stock Index on MetaTrader 4 FX Trading Platform.
Strategy to Trading NASDAQ 100 Stock Indices
NASDAQ 100 Stock Indices technique of calculating makes it more volatile and hence there are wider swings in price movement of this stock index. The has a weighting component for each Stock Index included on this index. Although this stock index generally moves upward over longterm because USA economy also shows strong growth.
As a trader you want to be biased and keep buying as the index moves upwards. When USA economy is performing good, the stocks that constitute NASDAQ 100 Stock Indices will keep gaining in values and thus this stock index is likely to keep heading in an upward trend. A good stock index trade strategy to trade this Index would be to keep buying the dips.
During Economic Slow-Down and Recession
During economic slow-down & recession times, corporations begin to report lower profits & lower growth prospect. It's due to this reason that traders begin to sell stocks of firms that are reporting lower profits & hence Stock Indices tracking these specified stocks also will begin to move downward.
Hence, during these times, trends are likely to be moving downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.
Contracts and Details
Margin Requirement Per Lot - $ 30
Value per Pips - $ 0.1
Note: Even though general trend is generally moves upwards, as a trader you've to consider & factor in daily market volatility, on some of the days the Stock Indices may move in a range or even retrace & pull-back, the market pullbackretracement move may also be a significant one at times & hence as a trader you need to mark-time your entry precisely using this trading strategy: strategy and at same time use proper equity management guide-lines just in case there's more unexpected volatility in the market trend. About stock index money management principles courses: What's Stock Index money management and Indices equity management strategies.
