NASDAQ 100 STOCKS LIST

How to Chart the Nasdaq

​The Nasdaq 100 is one of the most popular charts that traders and investors use to invest and trade the markets. Technology stocks are very popular to trade and invest in long term. Our world is ​always evolving and that's what makes this sector very attractive to many investors.

​So, how to do you chart this major index? Knowing how to trade the trend is very important to know as a trader. There is a phrase that's called the trend is your friend and this is very true when it comes to the $QQQ.

​Technology stocks run overall with the Nasdaq index. If this index is up then many of the stocks run with it. When it's bearish then usually the stocks that are in this indices fall with it.

​Knowing how to find trend lines is very important when it comes to trading and investing long term.

​Pull up a chart of the $QQQ and look at longer term time frames such as weekly and monthly charts. Connect as many angular channels up and down until you can find sloping channels up and down. These are called broadening formations, megaphones, and also rising channels.

Watch for Pullbacks

​As price action rises in an upper channel, it's important to be aware of angular support and resistance levels within the channel. As price rises on the $QQQ be aware of potential pullbacks or even drastic drops as price hits resistance of the upper channels.

​This is very common when you find an overall uptrend. Price doesn't go up forever. Again, you can have minor pullbacks to moving average levels or even drastic drops.

​Should you buy the dip? The answer is yes, however, you have to know where those dip buy areas are on the $QQQ charts. You need to spot doji and hammer reversal candlesticks and be aware of resistance areas above to take your profits after entry of the dip buy.

How to Trade the Nasdaq 100

There are several different ways that you can trade the Nasdaq 100 index. A couple of the most common are to trade futures and options etf's. The most popular options symbols are $QQQ, $ONEQ, $IBB, $QTEC and the futures symbols are /NQ, and /MNQ

There are two types of futures that you can trade. E-Mini and micro futures. E-mini's are the more expensive but most well known way to trade them among futures traders, however, micros are gaining some steam, especially with the lower margin requirements.

E-mini's require an initial upfront market of $8250, whereas micros require $825. Micros have a tick value of $0.50 and e-mini's have a $5 tick value.

The futures on this index move in 0.25 ticks so 4 ticks make up 1 point. So, every 1 point move on the e-mini's give you the potential to make or lose $20 and every 1 point move on the micros gives you the ability to make or lose $2.

Trading Styles

​There are several different trading styles among futures and options traders of the Nasdaq indices. There are day traders, swing traders, and long term traders.

Day trading weekly options is a very popular trading strategy, where momentum traders like to buy and sell weekly contracts on highly liquid tech stocks. They use the leverage that options contracts affords them to capitalize on short term gains.

The liquidity of these contracts allows them to get in and out of their contracts and is an alternative to day trading penny stocks.

Futures trading is a similar strategy but a bit different. Day trading Nasdaq futures is very popular and is a bit less complicated than options contracts.

Both are very lucrative strategies to day trade the Nasdaq. Futures trading takes a bit more capital in your brokerage account due to margin requirements. Options requires less capital to trade. But both are very good strategies.