What is NASDAQ100 Strategy? - Tutorial Guide for Trading/Transacting NASDAQ100 Stock Index

NASDAQ 100 Chart

NASDAQ100 chart is shown and displayed above. On above example this Stock Index is named USA 100CASH. As a trader you want to find a broker that provides NASDAQ100 chart so that as you as a trader can start to trade it. The example Which is shown above is the one of NASDAQ 100 Index on the MT4 Forex Software Platform.

Strategy to NASDAQ100 Stock Index

NASDAQ 100 Index formula of calculating makes it more volatile and hence there are wider swings in price movement of this index. The index has got a weighting component/constituent for each Index included on this index. Although this index in general moves upwards over longterm because the USA economy also shows strong growth.

As a index trader you want to be biased & keep on buying as the index heads and moves upward. When the US economy is doing good, stocks that make up NASDAQ100 Index will keep gaining in values & thus this index is likely to keep heading in an upward trend. A good stock index trading strategy to trade this Index would be to buy dips.

During Economic SlowDown & Recession

During economic slow-down and recession times, firms start to report slower profits and lowers growth projection. It is due to and because of this reason that traders begin to sell stocks of corporations that are reporting lower profits & hence the Indices tracking these specific stocks also will begin to go and head downward.

Hence, during these times, market trends are much more likely to be heading downwards & you as a trader should also adjust your trading strategy accordingly to suit the prevailing downwards trends of the index which you are trading.

Contracts & Details

Margin Required Per 1 Lot - $ 30 dollars

Value per Pips - $0.1

NB: Even though general and overall trend is generally moves upward, as a trader you've to consider and factor in the daily market volatility, on some of the days the Index might move in a range or even retrace & retracement, market pullback move might also be a big one at times & therefore as the trader you need to time your entry strictly using this trading strategy & at the same time use the proper & appropriate money management strategies & guidelines just in case there is more unexpected volatility in the market trend. About equity management guidelines/strategies in indices learning lessons: What's Stock index money management guidelines & methods and money management system.

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