<\/span><\/h2>\nThe NAS100 is a portfolio of 102 securities representing the 100 largest non-financial stocks listed on the NASDAQ stock market. Almost each large technology company you can think of is included in the index (and that’s just the A’s): Activision Blizzard, Alphabet (Google), Advanced Micro Devices, and Amazon. In addition to these technological titans, there are a wide variety of other businesses spanning industries, transportation, and the media.<\/p>\n
Companies can be removed from the index at any moment if their weight falls below 0.1%, with the largest not-yet-indexed business replacing the fallen stock’s position in the index.
\nTrading the NASDAQ 100: A Guide
\nBecause stock markets tend to move in an upward direction over the long term, trend-following is the preferred trading method for stocks and indices.<\/p>\n
In order to make money, trend-followers follow the herd rather than try to beat it in the market.<\/p>\n
When the market turns negative, you won’t be stuck with a bunch of undesired stocks like you would be with a buy-and-hold strategy, which is where trend-following methods shine.<\/p>\n
A buy-side only trend-following strategy is the easiest way to start trading the NAS100.<\/p>\n
Once you know how to do this, you can add shorting to your strategy to make money from falling markets, or you can ignore this option and just go on vacation when the NDX100 index falls.<\/p>\n
Since trend-following is a long-term strategy, the daily chart is likely to be a suitable location to begin your quest for an edge. Moving averages, Bollinger bands, and Keltner channels are some indicators you might want to look into and use in your NAS100 trend-following strategy.<\/p>\n
One of the best things about trading using a daily trend-following strategy is how quick and easy it is to implement; since you’ll only be trading once a day, at the start of the new trading session, you can complete all of your transactions in less than five minutes. This method is ideal for investors who must balance trading with other responsibilities, such as work, family, or school.<\/p>\n
<\/span>How do I trade the NAS100 from South Africa?<\/span><\/h2>\nOpportunities to trade the market are abundant on the NASDAQ, the world’s second-largest stock exchange, and the NAS100, one of the most actively traded indexes. However, trading the market directly from South Africa may be challenging if you are not already set up with a US stock brokerage.<\/p>\n
The NAS100 is just one of many indices and markets on which contracts for difference, a type of derivative product, are traded.<\/p>\n
Most of the time, these products have reasonable fees because they let experienced traders and investors bet on market movements without buying the stock or index.<\/p>\n
A further perk of CFD trading is the availability of leverage, which multiplies your gains or losses relative to what you could do trading in the cash market.<\/p>\n
If you choose a CFD broker, you can start trading the NAS100 with very little money and put your new trend-following method to the test in real market conditions without taking on too much risk.<\/p>\n
After you’ve tried out your plan and figured out what could go wrong, you’ll be able to use leverage to increase your NAS100 trading volume right away, no matter what the market is doing.<\/p>\n
The best place to start trading NAS100 trends is with a reputable and well-established CFD broker in South Africa, like Blackstone Futures.<\/p>\n
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