It is recommended to trade Nas100 between 3pm and 10pm SAST. The reason for this is that the amount of available liquidity is much greater than during its unofficial trading hours.
The NASDAQ 100 is one of the world’s most popular equity indices. It is the total market capitalization of the largest global companies listed on NASDAQ. It includes companies such as Google (Alphabet), Facebook (Meta), Amazon, Apple, and Tesla, among others. The NAS 100 is also known as the US TECH 100.
South African traders can trade the NAS 100 using CFDs without actually owning the securities.
Many forex and CFD brokers in South Africa offer NAS 100 trading as a CFD instrument with varying spreads and features. South African traders can speculate on the US Tech 100 stock index and go long or short using CFDs on a variety of trading instruments.
Trading strategies for the NASDAQ
Create a trading strategy the first time you trade the NASDAQ. Despite the fact that there are hundreds of possible strategies, we outline a few suitable for beginners in this section.
- Take a look at the most heavily weighted constituents.
Trading the NASDAQ 100 on a short-term basis necessitates your active participation. As a result, the emphasis must be placed on the NASDAQ constituents with the greatest weight.
Amazon, Apple, and Microsoft will all be involved again. As previously stated, these three companies account for more than 28% of the overall index.
If you want to pursue this strategy, keep an eye out for quarterly earnings reports. This section will provide an update on NASDAQ’s performance over the previous three months. Revenue, operating margin, and operating profit are all reports to look for.
If one of the major NASDAQ players has a strong quarter, the index’s value will likely rise. As a result, if the opposite occurs, the NASDAQ’s price may fall.
- Dollar-cost average
CFDs may be one of the more difficult ways for a novice trader to speculate on the NASDAQ. Long-term investing is most likely the best strategy for you.
If you want to minimize risk, you should use dollar-cost averaging. Your investment will consist of a small amount of money invested in the NASDAQ at predetermined intervals.
Consider putting $100 into a NASDAQ 100 ETF each month.
As a result, each investment will have a unique cost price.
As a result, you won’t have to worry about short-term volatility because this cost price will average out on each subsequent investment.
Even if the NASDAQ falls, it is possible to invest at a lower cost.
The dollar-cost averaging strategy will only work if you use a broker that allows you to make small investments. We like Capital.com because it allows you to invest in a NASDAQ 100 ETF for as little as $50 per trade.
What exactly is a NASDAQ 100 forecast?
In comparison to individual stocks, predicting the future value of the NASDAQ 100 is far more difficult. This is due to the fact that the index contains more than 100 companies.
Even more importantly, the performance of these 100 stocks determines the value of the NASDAQ 100. Each piece of equity is then weighted based on its performance.
Having said that, technical analysis continues to play an important role in NASDAQ trading, particularly in identifying support and resistance levels. The NASDAQ 100, for example, failed to break through 14,000 points twice in 2021. This represents a physiological zone for investors.
At the time of publication, the NASDAQ 100 was trading at 13,686 points. As the index approaches the resistance line, it returns to the range’s lower end. If the NASDAQ convincingly breaks through 14,000 points, it could enter a prolonged bullish period.
However, if the index fails to break through 14,000 points again, this could be an excellent opportunity to enter a short position – at least in the short term.
