One of these tools is the Nasdaq Index, which offers traders information about the most important stocks on the NASDAQ market.
What is the Nasdaq Index?
NASDAQ is a stock exchange market that functions in the US, located in the Manhattan area, New York. Together with the NYSE, they set the norm for the prices on stock markets around the world.
The Nasdaq Index is a tool provided by the same NASDAQ to inform traders about the top 100 most important values on the industry of technological advances, both in hardware and software, communication systems, and biotechnology.
Nasdaq Index and traders
The Nasdaq Index alone is not enough to know when to buy or sell stocks. Traders need to create different strategies combining the information that the Nasdaq Index provides and, at the same time, looking for the signals indicators on the stock market.
Depending on the trader, the strategies he will use are different. Traders that work with technical analysis will look for buy and sell signals based on the charts. They search for various indicators programs that show the buy and sell signals when they reach peaks and troughs. Combining both the Nasdaq Index and the indicator chart, they can predict how the stock market is going to move in the upcoming days, buying and selling. An indicator is not always infallible, so traders must know that they will be taking risks depending on the indicator program they decide to trust.
Other traders use fundamental analysis to evaluate how the stock market is going to react. For this analysis, they study the variables that produce changes in the prices shown in the Nasdaq Index. The first thing they take into consideration is the companies that appear on the Index, studying the tendencies and following the news related to them. Traders also look whenever there are changes in the monetary policies that could affect the Nasdaq Index. Lastly, they evaluate the effect of currency wars that could relate to the companies on the Index.
Tips for using the Nasdaq Index effectively
Related education and FX know-how:
Trusted FX Brokers
Haven't found what you're looking for? Contact us!
Forex Education - Basics:
Free Forex eBooks:
Forex Education - FX Brokers:
Forex Education - Technical Analysis:
Forex Education - Money Management:
Forex Education - Psychology:
Forex Education - Others:
Forex Interbank Trading: