NASDAQ trading strategy that will make you thousands! ££££££ - Sophia Trades

In this article i’m going to talk about a NASDAQ trading strategy which can literally make you thousands!! I’ve been using this strategy on the NASDAQ for the last few months and it has proved to be very successful. I’ve also linked below a video showing you some of my entry and exit points on Trading View. The video explains the strategy but I have outlined it below, too. This strategy builds on my MACD strategy which regular visitors to this site will know me well for. However, I made a few tweaks to take account of the unique personality of the NASDAQ index, and I also made some allowances for Trump’s tweets which have been sending the markets loopy lately! I hope you enjoy this article.

NASDAQ trading strategy – how it works

The NASDAQ trading strategy applies my usual MACD strategy as follows:

* Identify a nice uptrend on the daily time frame;
* Make sure the price is above the 200 period EMA;

* You want to get in per this NASDAQ trading strategy when the market is pushing up per the daily timeframe. To identify this, get in after the MACD and signal lines have made a cross over, ideally from a point below the zero level of the histogram. Ideally the RSI will be low at this point or at least not at a very high/overbought level:

*Once the MACD and signal lines have crossed over or are about to cross and go up again on the daily timeframe, you can visit a quicker/lower timeframe to find your entry and exit points, like the 30 minute timeframe.
*On the 30 minute timeframe, wait for the price to pop up over the 50 period EMA on the quicker timeframe as in the picture below:

*Once the price has popped up over the 50 period EMA, this would be a good place to enter the trade, based on your 30m timeframe and daily timeframe analysis.

*You can trail a stop below the latest low of the 30 minute timeframe trend, to scoop as much profit as possible from the move, before the trend reverses.

NASDAQ trading strategy – my recent entries and exits:

I’ve shared below the view from the daily timeframe of my own recent entries and exists using the NASDAQ trading strategy:

You can see i’ve been entering and exiting the market over and over and i’ve made a nice profit in the last few months in this way, not just on the NASDAQ but on other markets too!

In terms of the view from the daily timeframe, some things to watch for include the ‘personality’ of the RSI indicator. I suggest you have this on your chart and watch for the subtle ebs and flows of this indicator up and down to check when the market has likely reached another little peak/trough:

Its’ a bit difficult to show clearly here but you can see the little red arrows I have marked on the direction of the RSI indicator. I got in, each time the RSI had pulled back to a tiny dip position, and got out again when it extended to the top of the RSI channel. You can use the RSI indicator to help you identify the peaks and troughs in this way and to get in and out of the market several times over. Compare the blue and red arrows on the candlesticks above which show my entries and exits, to the flows of the RSI indicator below.

Now let’s look at the entries and exits on the 30 minute timeframe:

Here are some screen shots of the recent entries I made per the 30 minute timeframe view:

Some notes for you on the 30 minute timeframe view to bear in mind while you are applying this NASDAQ trading strategy – my entries and exits were not always perfect! There was one or two occasions where the market pulled back a bit further, after I entered. I prepared another recent article about how Trump’s tweets are affecting the stock market and I talked in that article about how to deal with the turbulent fallout. Here is a link to that video:

Here is the blog article I wrote about adapting my trading style to deal with President Trump’s tweets:

How President Trump is affecting the stock market – Trader Pro

As a result of my adaption to dealing with the markets in this new ‘Trump’ era, I learnt to ‘loosen’ my trading style. The key points I made were that I control my position size and I no longer use a stop loss. (I actually started out not using a stop and then started applying one some time into my trading journey, but now I have reverted back to not using one). This can only work if you control your position size and you are unlikely to get a margin call when the market goes slightly against you! It is not a recommendation to get into huge position sizes and not apply a stop loss.

The NASDAQ can be good for someone learning this NASDAQ trading strategy because it’s an average of some of the top stocks in America. Therefore, they are highly likely to push up overall and the ‘bad news’ of one of the companies on the index, is unlikely to pull the whole index down indefinitely. So… if the market dips a little and I entered at the wrong place/it was not a perfect entry, it’s ok. I wait – confident that I checked the daily timeframe and I was satisfied it is indeed near a low point overall. I wait for it to recover, and then take my profit again.

If the market did not recover for some time after my entry, I am still confident I will not be given a margin call – you can see other blog articles on my website which explain what a margin call actually is, and how to avoid it. If the markets have dipped down so much that they don’t recover for a while, it’s also a good time to stay out of the markets so I will be waiting in any event, and there is no loss for me except the little bit of profit on the portion of my account size which has been trapped/locked into my trade further up on the chart. In this scenario my plan would be to wait for the market to bottom out, and then get back in with another portion of my account, once i’m confident it’s recovering, and make profit all the way back up in the way I have illustrated above. I hope this makes sense to beginners but if you want to reach out and ask for further explanation I would be happy to help!

How do you know that the market had bottomed out after such a large pull back? You wait to see that it’s started making higher highs and higher lows, on the daily timeframe again. Here is a link to an article, showing you how to identify highs and lows properly:

Amazing secrets to help you make more money trading – spot a downtrend early! – Trader Pro