Obviously, this is a tricky question. By the time you read this, the market may have already shifted and the information here may have already become obsolete. Nonetheless, the point we want to discuss today is focused on understanding what strategies you can formulate and apply when it comes to buying and trading in the market.
Ideally, we want to provide you with the right foundation and knowledge when it comes to Nasdaq. Specifically, knowledge that you can apply at any point in the future. Allow us to share with you some excellent Nasdaq trading strategies, though be careful to note that these strategies vary and there isn’t one strategy that outperforms the rest.
Ultimately, the strategy you choose will depend on you and your trading tendencies and profile. What we’re sharing is merely our opinion on what you need to know when it comes to developing your Nasdaq trading strategy.
Studying and Understanding the Graphs and Charts
This may seem clear, but more often than not, people have different ways of interpreting market data. There’s no such thing as 100% absolutes or guarantees. What we recommend is focusing on probabilities. In terms of trading, a probability simply means knowing which outcome would most likely occur if a certain set of actions are repeated numerous times over the course of a time period.
One way of doing this is by looking at the graph or chart and noting down the total number of dips the market has experienced over a certain period. A dip is a situation where the market goes down to a certain point before going back up again. This instance or situation is what we call a u-turn opportunity and ideally is the best time for you to initiate your entry strategy.
Always Seek To Stack the Odds in Your Favor
Executing your entry strategy during a u-turn opportunity is one thing, but knowing when exactly that opportunity opens up for entry is another thing entirely. For the most part, no one really knows this. At best, what we can do is to try to stack the odds in our favor and hopefully leave with a profit.
One of the best ways of improving your trading odds is by looking at the market from a different perspective. A good strategy for this is looking at the market from an hourly perspective.
On a daily basis and over a period of months, market graphs usually show higher highs and lower lows and what we want to do is to enter the market during a lower low, just before it goes on to a higher high. What most people don’t know is that within an hour of trading, the market also does its own dedicated higher highs and lower lows— basically its own u-turn opportunities. Studying the data from an hourly point-of-view may give you an idea on how to determine u-turn opportunities better and more clearly.
Know Who’s in Control
The market focuses on trends and in a normal economy, most markets follow an uptrend and downtrend line. When the market is on its way down, sellers are in control. Conversely, when it goes up and past the downtrend line, buyers are in control. Knowing who’s in control can make you smart enough to figure out when it’s a good time to execute not only your entry strategy, but also your exit strategy. Taken together, this opens you up for greater opportunities.
Whether or not you choose to buy Nasdaq, make sure that you follow the above tips to ensure the greatest chance of success.