Tips & Tricks for Trading the NASDAQ
After the steps above showing how to trade the NASDAQ step by step, here are practical tips to apply when trading the NASDAQ index.
- Only open NASDAQ positions you can justify with prior technical or fundamental analysis.
- Protect every position. Use stop losses, but also take profits.
- Always keep in mind the factors that significantly influence the NASDAQ price (macroeconomic data, activity of the index’s major companies, Fed monetary policy, etc.), not forgetting the correlation between indices.
- Be disciplined and patient with every NASDAQ trade, even when day trading the NASDAQ.
- Limit your exposure on each NASDAQ trade, and use leverage sparingly when trading this index.
- If you scalp or day trade the NASDAQ, stay alert and prepare from the price moves seen during pre-market sessions (before trading opens on the Nasdaq).
- Stay informed, and feel free to rely on the official Nasdaq websites designed to inform the public about its stock exchange and the companies in its indices.
- Keep a NASDAQ trading journal recording your positions, entry and exit prices, dates, etc., so you have a clear view of your Nasdaq trading activity and can adjust it if needed.
- Always trade the NASDAQ with a reliable, low-cost broker, and make sure you can use its trading platform easily.
*68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
To gauge Wall Street’s nerves, traders watch the VIX. Our guide to VIX ETFs and the 20, 25 and 30 levels explains how to use it.
Top Platforms to Trade the NASDAQ Price
Is Trading the NASDAQ Profitable?
Trading the Nasdaq index is full of opportunities and very profitable when you trade with the right instrument (NASDAQ CFDs, NASDAQ ETFs, etc.) and make good price forecasts. You can buy American International Group (AIG) stock through the NASDAQ index via CFDs with the broker Vantage. Likewise, over the (very) short term as well as the medium to long term, the NASDAQ price shows good volatility and can deliver impressive returns if you take the right positions.
Trade with the Best NASDAQ Spreads and Swaps
The following table gives an overview of the spreads and swaps charged by the best brokers on the NASDAQ index.
Nasdaq Broker | Nasdaq Commission / Spread | Nasdaq Long Swap | Nasdaq Short Swap |
 | NASDAQ 100 (NSDQ100) = 240 Pips |
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|
 | NASDAQ-100 (NAS100)
| Variable | Variable |
 | NASDAQ-100 (US_TECH100) Spread = 1 point | Minimum -0.0058% / Day | Minimum -0.0058% / Day |
Best Times to Trade the NASDAQ
The best times to trade the NASDAQ index are:
- During Nasdaq opening hours
- In the first two hours after the market opens
- In the last hour before the market closes
- On Monday afternoons (buying)
- On Fridays (selling)
- In the first 30 minutes if, and only if, you are an experienced Nasdaq trader
- After major economic announcements
- When your Nasdaq trading signal tells you to invest
*68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
NASDAQ Trading Example
Suppose that:
- The NASDAQ-100 is trading at 14,300 points.
- You think the price will rise (over the very short / short / medium / long term, depending on your trading style and analysis).
- You buy 10 lots of NASDAQ-100 CFDs: you will therefore gain $10 for every additional point the NASDAQ-100 gains. This position is worth (with leverage) 14,300 x 10 = $143,000. That is equivalent to an actual investment of only about $400 if you use the 1:333 leverage offered, for example, by Vantage on this index.
- The price does rise and reaches 15,000 points. By selling at this new price, you gain 700 points. That is equivalent to a gain of 700 x $10 = $7,000.
- You can invest in Nasdaq ETFs to get more out of your various investments. (Find out how to invest in a NASDAQ ETF).
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NASDAQ Trading Analysis
A good Nasdaq analysis is essential for a sound investment in this index. You have two analysis options: technical analysis and fundamental analysis.
Technical Analysis and the Best NASDAQ Trading Indicators
Traders use technical analysis for chart analysis and to find NASDAQ trading signals. Technical analysts can use indicators that help them detect market trends, possible retracement patterns and shifts in sentiment.
Several indicators are useful for a good technical analysis of the NASDAQ price: Moving Averages, Exponential Moving Averages, MACD (Moving Average Convergence Divergence), Fibonacci, Bollinger Bands, Alligator, RSI, etc.
NASDAQ Fundamental Analysis
Several factors have a fundamental influence on the Nasdaq price. Traders need to be aware of these variables and their possible effects on the index.
These variables include macroeconomic factors as well as factors related to the index’s composition. The Nasdaq index price can therefore be influenced by the following:
- The performance of the largest Nasdaq companies.
- Federal Reserve decisions.
- Interest rates, inflation, GDP, unemployment rate, etc.
- Other variables: trade barriers / trade wars, tariffs, currency wars, etc.
Also, feel free to use the economic calendar for better fundamental analysis when trading the NASDAQ. This calendar will help you forecast market moves and the NASDAQ price.
Trade the NASDAQ with High Leverage
If you like high-leverage trading and know how to use leverage, we recommend the broker Vantage. With this broker, you can trade the NASDAQ with leverage of up to 1:333.
| ★★★★★ 5/5 | Regulated By: FCA, ASIC, CIMA Year Founded: | Headquarters: Sydney, Australia
| Try the Broker |
Trade the Nasdaq with Low or Medium Leverage
If you want to trade the NASDAQ with ESMA-level leverage for this type of index, we recommend DEGIRO and eToro. With these two brokers, you can trade the NASDAQ with leverage ranging from 1:1 to 1:20. Here is the proof for eToro.
What Is the NASDAQ?
The definition of the Nasdaq is a special one. The Nasdaq refers both to a financial market and to an index (or several indices). As a market, it is a stock exchange founded in 1971 and the main venue for trading and listing technology and biotech companies and stocks.
As an index, the NASDAQ brings together the stocks or companies listed on its market. However, there are several NASDAQ indices, the main ones being:
- The NASDAQ-100, which includes the 100 largest technology companies listed on the Nasdaq market (Apple stock, Nikola stock, Microsoft stock, Facebook, Sage stock, Nanobiotix stock, Uber stock, Airbnb stock, etc.).
- The NASDAQ Composite, which includes all companies listed on the Nasdaq market (Apple, Microsoft, Cellectis, Genfit, Moderna, Nvidia, Tesla, Zoom).
- The NASDAQ Financial-100, dedicated to the leading stocks or companies (100) in the financial sector in general.
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Trading the NASDAQ for Beginners
When you start trading the NASDAQ, it is best to use trend-following tactics, meaning you open and close positions on NASDAQ CFDs in line with the price trend of this asset.
Of course, when starting out, always apply money management rules (commit only a small fraction of your trading capital to each Nasdaq position), as well as risk management rules (stop orders, low leverage to begin with, etc.).
To trade the NASDAQ well as a beginner, it is also essential to work with a reliable broker that charges competitive NASDAQ fees and, above all, offers a user-friendly trading platform that is easy to use and optimized for newcomers. The best platform choice for beginners is eToro.
Which Broker Should You Choose to Trade the NASDAQ?
Which Financial Instruments Can You Use to Trade the NASDAQ?
To trade the NASDAQ, you can use the following financial instruments: individual Nasdaq stocks with or without a dividend, ETFs or trackers, futures, etc., and above all CFDs.
NASDAQ CFDs are the best financial instruments for trading the NASDAQ. The main advantages of CFDs over all the other instruments you can use to trade the Nasdaq are that they are easy to access and understand (so excellent for beginners), cheap in trading fees (when you trade the Nasdaq with the right CFD broker), suited to short-term trading (and beyond), and require very little starting capital.
Find out how to buy Lucid Motors stock and how to buy Robinhood stock.
Top Brokers for Trading Indices (NASDAQ and Others: S&P 500, CAC 40, etc.)
If, besides or in addition to the NASDAQ, you want to trade indices in general, the table below shows the best brokers currently available for trading this type of asset.
Broker | Founded | Regulation(s) | Available Indices | Max. Leverage on Indices |
| 2006 |
| Dow Jones | 1:20 |
| 2009 |
| ASX / SPI 200 | 1:333 |
| 2006 |
| AEX CAC 40 | 1:200 |
NASDAQ News
Staying well informed is one of the foundations of trading the NASDAQ effectively. You need to regularly follow news about this index and the companies that make it up.
You can follow news about the index on TV, in specialist publications, etc., or by reading releases from the companies in the index.
However, one of the most effective and convenient ways to follow NASDAQ news is to open a NASDAQ trading account. From your trading account, you will have all the most important information for traders and investors in this index, and can react when needed.
| ★★★★☆ 4.5/5 | Regulated By: ASIC, CBI, FSA, FSCA, FSC and ADGM Year Founded: | Headquarters: Dublin, Ireland Minimum Deposit: |
NASDAQ Trading Strategies
Some trading strategies are particularly well suited to trading the NASDAQ, strategies you can also put into practice (or not, if you have not mastered them). Here are two of them: the Black Candles strategy (suited to day trading and swing trading the NASDAQ), and the Nasdaq Long Only strategy (for knowing when to buy the NASDAQ, in day trading and automated NASDAQ trading).
NASDAQ Trading: Should You Buy or Sell the NASDAQ?
To decide whether to buy or sell the NASDAQ, you can:
- Carry out technical and/or fundamental analysis;
- Use precise, effective NASDAQ trading signals;
- Apply Nasdaq trading strategies and follow their recommendations on the right times to buy or sell the NASDAQ.
Note, however, that for a NASDAQ scalper or day trader, whether to buy or sell will depend on the analysis and factors we have just covered in the paragraphs immediately above.
On the other hand, if you are a swing trader or a medium- to long-term NASDAQ trader, it would be more opportune to buy (not sell) the NASDAQ now, as forecasts for its price are almost all optimistic. Your Nasdaq investment today should therefore gain value over the coming weeks, months or years.
NASDAQ Copy Trading
AvaTrade offers two excellent copy trading platforms from which you can trade the NASDAQ: DupliTrade and ZuluTrade. However, they are not as easy to use as eToro’s platform.
So if you want to copy trade or social trade the NASDAQ, we strongly recommend the broker eToro. It stands out above all for the ease of use of its copy trading platform, but also for its competitive brokerage fees. The image below shows the steps to copy trade the NASDAQ index on eToro.
Automated NASDAQ Trading
If you want to trade the NASDAQ automatically, the best place we recommend is AvaTrade. With automated trading, you can trade the NASDAQ using an algorithm that performs analysis and trades without your intervention. This saves you time (and possibly money), and lets you set parameters you won’t keep revisiting, as often happens when you put too much emotion into your trades.
| ★★★★☆ 4.5/5 | Regulated By: ASIC, CBI, FSA, FSCA, FSC and ADGM Year Founded: | Headquarters: Dublin, Ireland Minimum Deposit: |
*68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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Trading signals help you identify the best NASDAQ trading opportunities at the right time and take advantage of them. To really benefit, the signals you receive must be as accurate as possible, hence the need to trade with the best broker for NASDAQ trading signals.
Types of NASDAQ Trading
The NASDAQ has the advantage of being compatible with every type of trading and every category of trading strategy.
NASDAQ Scalping
The Nasdaq records high volatility during every trading session, which creates attractive scalping and profit opportunities. Many technical analysis indicators and tools work well with this index (as we saw above), especially for scalping.
NASDAQ Day Trading
The NASDAQ’s intraday volatility is also fairly high, as you can see on the NASDAQ price charts at the start of this guide. As a result, day traders do well with the NASDAQ, and there is no shortage of indicators, signals and charts to help them implement their strategy.
NASDAQ Swing Trading and Long-Term Investing
The NASDAQ is also very well suited to swing trading, buy and hold and other long-term investment strategies. As well as being volatile over the very short and short term, the NASDAQ price is even more volatile over the medium to long term. If you are a swing trader or long-term investor, don’t hesitate to buy the NASDAQ now, as forecasts for its medium- to long-term price are very optimistic. You could then sell it later and potentially make huge gains. This strategy is also profitable when buying Amazon stock.
| ★★★★★ 5/5 | Regulated By: CySEC, FCA, ASIC and FinCEN Year Founded: | Headquarters: Limassol, Cyprus Minimum Deposit: | 67% of retail CFD accounts lose money. |
Pros and Cons of Trading the NASDAQ
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Trading the NASDAQ: Should You Invest in the NASDAQ This Year?
There are plenty of opportunities this year for NASDAQ scalpers and day traders (and all other traders who favor short- or very short-term strategies), as the index still shows high volatility in every hour and every trading day.
Long-term NASDAQ traders can also take advantage of this volatility by investing now. What’s more, by investing in the NASDAQ this year (especially by buying), these traders could soon benefit from the medium- to long-term rise in the NASDAQ price that almost all experts are forecasting.
Read also: How to Trade the Dow Jones
Are you used to trading indices like the NASDAQ, or have you just started? Feel free to share your experience with us in the comments below!
Read also: Nasdaq 100 Components