What is NASDAQ 100 Trade Strategy? - Tutorial for Trading NASDAQ 100 Stock Index
NASDAQ 100 Chart
NASDAQ 100 chart is illustrated & displayed above. On above example this Stock 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 start to trade it. The example Which is shown above is that one of NASDAQ 100 Index on the MT4 Forex Platform Software.
Strategy to Trading NASDAQ 100 Index
NASDAQ 100 Stock Index technique of calculating makes it more volatile & 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 the USA economy also shows strong growth.
As a trader you want to be biased & keep buying as the index moves upwards. When the USA economy is performing well, stocks that make up NASDAQ 100 Stock Index 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 buy dips.
During Economic SlowDown & Recession
During economic slowdown and recession times, corporations begin to report lower profits & lower growth prospect. It's due to this reason that traders begin to sell stocks of corporations that are reporting lower profits and hence the Indices tracking these specified stocks also will begin to move downwards.
Hence, during these times, trends are likely to be heading downwards & you as a trader should also adjust your trade strategy accordingly to suit the prevailing downward trends of the stock index that you're trading.
Contracts and Details
Margin Required Per 1Lot - $ 30
Value per Pips - $ 0.1
NB: Even though general trend is generally moves upwards, as a trader you've to consider & factor in the daily market volatility, on some of the days the Stock Index might move in a range or even retrace and pullback, market pullbackretracement move might also be a substantial one at times and hence as a trader you need to mark-time your entry precisely using this trading strategy & at same time use proper money management guide-lines just in case there's more unexpected volatility in the market trend. About equity management strategies in stock indices lessons: What's Stock index money management and money management methods.
