What Is NASDAQ?
An Abbreviation For National Association Of Securities Dealers Automated Quotations.
It Is An American Stock Exchange Currently Standing As The Second-Largest Stock Exchange In The World Behind New York Stock Exchange By Market Capitalization.
What Is The NASDAQ100 (NAS100)?
Is The Stock Market Index Operated By NASDAQ Made Up Of 103 Equity Securities Issued By 100 Of The Largest Non-Financial Companies Listed On The NASDAQ.
The Index Includes Companies From Various Industries Except For The Financial Industry, Like Commercial And Investment Banks.
These Non-Financial Sectors Include Retail, Biotechnology, Industry, Technology, Health Care, And Others.
Including Microsoft, Amazon, Apple, Alphabet, Facebook, Berkshire Hathaway, And So Many Others.
The NASDAQ100 Should Not Be Confused With The NASDAQ COMPOSITE- This One Includes Every Company Listed On The NASDAQ Stock Exchange.
The Exclusion Of Financial Companies Gives The NASDAQ100 A Different Feel To The Likes Of S&P 500 And The Dow Jones, With More Of A Bias Towards Technology.
Companies That Made Up The NASDAQ100
When We Trade INDICES, We Do Not Buy Ownership Of An Asset. We Trade Instead. We Trade On The Changes In Prices, Just Like When We Trade Currencies. We Forecast The Direction Of The Price Of An Index, Open A Position, And See Where The Price Will Go. If We Are Right, We Will Earn Money. And That’s How It Is.
Why NASDAQ100 Become So Popular Among Traders In Recent Years?
I Love The Fact That My Fellow Traders Keep Asking Me This Question Repeatedly.
Why Has NAS100 Become So Popular In Recent Days?
My Answer Is Very Simple And Clear, Daily VOLATILITY.
Indices Especially NASDAQ100 Will Make You What Forex Can Make You In Three Weeks In Hours Or A Day But The Opposite Can Also Happen We Are Not Going To Focus On The Opposite Also I Don’t Want You To Be Ignorant Of The Fact That As Much As You Can Make A Lot In A Day, The Opposite Can Happen In A Day If You Are Not Going To Apply The Principles That I Will Explain In This E-Book.
In Low Volatility Days, NASDAQ100 Can Move Up To Approximately 2000 To 3000 Pips In A Day, Yes! Per Day. A Thing That Will Take A Currency Pair Several Weeks To Complete.
In Forex, We Are Looking At Currency Pairs And Their Performances But In NASDAQ100, We Are Looking At The Company’s Performances. A Currency’s Strength Is Directly Influenced By All The Fundamentals That Surround It, People Often Neglect Some Fundamentals, But I Have Realized That When All The Fundamentals Surrounding A Currency Are Combined, They Make Up A Driving Force Of The Currency.
The Fact That A Country’s Currency Is Losing Value Does Not Mean That The Companies In That Country Also Lose Value Or Rather Don’t Perform. Every Company Wakes Up Every Day With One Goal, And That Is To Be Better Than They Were Yesterday, To Increase Their Profits And It Is This Increase In Profits That Contributes To Share Prices. With Some Companies, It Is An Advantage For Them When The Currency Of The Country Loses Value Based On Their Operations.
How NASDAQ100 Is Traded?
NASDAQ100 (NAS100) Trading Involves Using Fundamental Or Technical Analysis To Determine Price Levels At Which To Enter A Trade.
But Most Of The Time NASDAQ100 Seems Not To Respect The Application Of Technical Analysis For Example The Use Of Price Action, Indicators, Chart Patterns, Etc. And That’s Why So Many Currency Traders Found It Very Difficult To Trade Nasdaq100 And Have Blown So Many Accounts Because Of Not Having The Right Knowledge And Information On How To Trade This Index.
But Here We Are Going To Discuss Some Powerful STRATEGIES And TECHNIQUES On How To Walk Away With Huge Profits From Trading NASDAQ100.
What Influences Extreme Volatility In NASDAQ100
NASDAQ100 Huge Price Movements And Volatility Are Impacted By Factors Like.
- Political Events
- Major Factors Which Affect Companies In A Particular Sector
- Economic Data Like Employment Figures And Big Changes In The Currencies Markets As Well As The Daily Performance Of The Companies That Made It.
Since It Is Comprised Of 100 Major Companies Across A Wide Variety Of Sectors With A Focus On Tech, Including Big Names Like Apple, Tesla, Cisco, Seagate, Intel, Adobe, Activision Blizzard, NVIDIA, Netflix, And More.
While The NASDAQ Is Primarily Dominated By The Tech Sector, It Also Boasts Companies From Industries Like Aviation, Consumer Services, And Healthcare.
Mostly, We Are Going To Tackle NASDAQ100 Technically, In Price Action But We Are Not Going To Be Ignorant Of The Fact That Fundamentals (News) Play A Role In Price Action.
It Is Very Wise To Not Neglect Fundamentals And Events Happening In The United States When Trading NASDAQ100, The Reason Being In The NASDAQ100 Is Strictly Companies’ Share Prices, And The Share Prices Rise And Fall Daily Depending On The Events And Fundamentals.
Companies Have One Goal And That Is To Grow But Some Events Affect Them Which They Don’t Have Full Control Over It Is These Events That Lead To Companies Having To Watch Their Share Prices Crumble But For Us, It Is An Opportunity To Make Money, For Example, We Simply Can’t Ignore The Fact That Oil Prices Are Falling Or Rising Because This Has A Direct Influence On Energy Companies’ Performance And Shares Daily.
Another Driving Force For NASDAQ100 Is The US Economic Performance. This Performance Is Expected To Be Based On News Or Economic Events That Have Occurred.
Being A MAESTRO Of Technical Analysis On Currencies, Doing Analysis Based On Price Action Where The Use Of Support And Resistance Levels And All Kinds Of Trends From Horizontal To Diagonal Come Into Action Will Still Not Be Enough When It Comes To Trading Indices, Especially The NASDAQ100.
Since Indices Are Making Huge Moves Within A Short Period, It Is Advised To Cover All Possible Scenarios Available When Doing Analysis. Demand And Supply Zones, Demand And Supply Intervals, And Their Unique Patterns Which You Cannot Find In Currency Trading.
NASDAQ100 Trading SESSIONS And Its Golden Time To Trade.
The NASDAQ100 Is Not Traded 24 Hours A Day Like Currency Pairs. NASDAQ100 Trading Time (Server Time) Is.
- 01:05-23:15
- 23:30-23:55 (GMT +3)
The Market Is Open 5 Days A Week But It’s Not Active All This Time! In Trading, The Profit Is Made When The Market Is Active, And Traders Are Bidding On The Prices. Therefore, It Is Crucial To Know The Most Productive Hours Of The Day And The Week For Trading.
There Are Three Major Trading Sessions; London, Tokyo, And New York Session. The Busiest Times Are When The Market Overlaps As Traders Can Place Orders From Different Places In The World.
The London Session Is Usually The Most Active As It Involves Many Countries From The European Union. The US Session Comes Next, So The Times When The London Session Intersect With The US Session Usually Provide The Best Profits.
There Has Been A Misconception Among So Many Traders, Some Even Dared To Go Further Lying That There Is A Special NASDAQ100 Trading Strategy Called “The 15:30 Strategy” The Truth Is There Is No Such Strategy When It Comes To NASDAQ100 Trading And 15:30 (South African Time) Is Only The Time When The New York Session Opens Whereby The Big Banks, Hedge Funds Place Their Huge Orders Which Results In Sudden And Epic Moves.