The US100 (also known as the NASDAQ 100) is a popular stock market index that tracks the performance of the 100 largest and most actively traded non-financial stocks listed on the NASDAQ stock exchange.
Trading strategies for US100
1. Trend Following: Identify the overall trend (up or down) and trade in its direction.
2. Range Trading: Identify a range-bound market and buy/sell based on support and resistance levels.
3. Breakout Trading: Wait for a breakout above a resistance level or below a support level and trade in the direction of the breakout.
4. Scalping: Make multiple short-term trades within a small price range, taking advantage of small price movements.
5. Swing Trading: Hold positions for a shorter period than trend following, aiming to capture medium-term price movements.
6. Mean Reversion: Identify overbought or oversold conditions and trade based on the assumption that prices will revert to their mean.
7. News-based Trading: React to news events and market announcements that affect the US100.
8. Technical Analysis: Use chart patterns, indicators, and other technical tools to predict price movements.
9. Options Trading: Buy/sell call or put options to profit from price movements or hedge against potential losses.
10. Algorithmic Trading: Use automated systems to execute trades based on predefined rules and strategies.
Remember, each strategy carries risks and requires proper risk management, market understanding, and trading discipline.
Popular trading strategy for US100
- Swing Trading: Buying and selling an asset based on market trends.
- Day Trading: Opening and closing a position on the same trading day, often used during days with market volatility spikes.
- Position Trading: Holding a position open for an extended period to benefit from an expected rise or fall in the value of the index.
Rules on how to trade US100
Long Trade (Buy) Rules:
1. Trend Identification: Identify an uptrend using indicators like Moving Averages or RSI.
2. Support Level: Price touches or bounces off a significant support level.
3. Buy Signal: A bullish chart pattern or indicator signal (e.g., golden cross, bullish engulfing).
4. Risk Management: Set a stop-loss below the recent low or a significant support level.
5. Position Sizing: Determine the appropriate position size based on risk tolerance and account size.
Short Trade (Sell) Rules:
1. Trend Identification: Identify a downtrend using indicators like Moving Averages or RSI.
2. Resistance Level: Price touches or bounces off a significant resistance level.
3. Sell Signal: A bearish chart pattern or indicator signal (e.g., death cross, bearish engulfing).
4. Risk Management: Set a stop-loss above the recent high or a significant resistance level.
5. Position Sizing: Determine the appropriate position size based on risk tolerance and account size.
Additional Rules:
1. Trade in the direction of the trend.
2. Use proper risk management tools (stop-loss, limit orders, position sizing).
3. Monitor and adjust: Regularly review and adjust your trades based on market conditions.
4. Don't overtrade: Avoid excessive trading, which can lead to increased risk and decreased performance.
5. Stay disciplined and patient: Stick to your trading plan and avoid impulsive decisions.
These rules are general guidelines and may need to be adapted to your individual trading strategy and risk tolerance. Always prioritize risk management and trading discipline.
