Many active stock traders want to stay on top of technical developments and news of the markets. But, with so many different stocks on the market, it can be difficult to single out one stock to focus and trade. A great stock option to consider for trading is the QQQ, which tracks market performance of the NASDAQ 100. It functions as an ETF, which holds positions that are primarily large-cap stocks. With its stability, along with the fact that many technology stocks are tracked by this fund, trading the QQQ has become a popular option.
Trading the QQQ in any market condition can be done by pulled in three time frames- daily, weekly, and monthly.
Daily Trading
The daily QQQ chart can be used to better identify current trends and patterns, helping to identify potential trading opportunities. The most active periods tend to occur during 9:30-11:30 a.m. EST and 1-3 p.m. EST. For a more conservative approach, you can focus on the later hours after markets close.
Weekly Trading
The weekly time frame is a great way to look at the trends and patterns that unfold over a longer period of time. The weekly chart allows stocks to be studied from a greater view, enabling traders to more accurately assess the QQQ’s primary direction. With this allows for more strategic trading decisions while the correct trend is determined.
Monthly Trading
The monthly chart is the perfect “big picture” view to use. With this time frame, traders can analyze the patterns, chart formations, and other technical indicators that form over longer periods of time. With this comprehensive overview, traders can make more informed decisions to position themselves in the market.
By adopting all three different time frames- daily, weekly, and monthly- when trading the QQQ, traders can more accurately weigh up potential trades using a blend of shorter-term and longer-term techniques. With the NASDAQ 100 being a stable and popular ETF, the QQQ is a great stock to trade to take advantage of higher returns.