What to use to trade the Nasdaq
The Nasdaq 100 is an index: you cannot buy it directly. The simplest way to learn is a listed fund that copies it, such as QQQ, or the large shares that make it up. There are also leveraged products (CFDs, futures, “2x” ETFs), which use borrowed money or contracts to magnify exposure: they amplify gains and losses alike and are not suitable for beginners. See what is the Nasdaq and what is an ETF.
Trading hours, seen from France
Regular session: 3:30 pm – 10 pm Paris time (2:30 pm – 9 pm while the clock changes are out of step, in March and late October). The first hour is often the most hectic: many orders arrive and the spreads (the difference between the buying and selling price) are wider. Outside the session, the price can jump between the close and the next open: this is a gap.
Key level no. 1: the previous day’s high and low
They frame the zone where buyers and sellers balanced out during the previous session.
- Price above the previous day’s high: an upside breakout (the price breaks through a level), buyers are taking control.
- Price below the previous day’s low: a downside breakout.
- Price between the two: the market is hesitating, there is no signal.
Key level no. 2: the opening range
This is the high and low of the first hour of the session (3:30 pm – 4:30 pm Paris time; some traders use only the first 30 minutes). Many traders wait for the price to leave it before acting: a move out through the top favours a purchase (LONG position), a move out through the bottom a short sale (SHORT position, which profits when the price falls). The long and short guide explains both directions.
Fictitious example on QQQ
- Previous day’s high: $726. Low: $707. Opening range: $717 – $722.
- At 4:45 pm, a one-hour candle closes at $724: a move out through the top of the range, but the previous day’s high has not yet been broken.
- A possible buy scenario, with a stop below the bottom of the range ($716.50): if the price falls back there, the idea of a move out through the top is wrong.
- With €100 of accepted risk and a $7.50 distance (about €6.70 at $1.12 to the euro), the quantity is about 14 units.
Traps to avoid
- The false breakout: a wick goes beyond a level, then the candle closes back below it. Wait for a candle to close beyond the level.
- The gap: after a big jump at the open, the previous day’s levels matter less.
- Announcements: US inflation (CPI), employment (NFP), the Federal Reserve (FOMC), results from the large companies. Prices can jump past the stop.
- The dollar: a gain in dollars can be reduced by the dollar falling against the euro.
Practise before risking money
Write each scenario down in a trading plan, calculate the position size, then practise with paper trading. BULLSAGE is preparing a Nasdaq section (in beta) that displays these key levels, an engine decision explained in plain language and Paper Trading on shares; the “Bull Nasdaq” specialisation of the Academy covers the whole method, with quizzes.
Trading shares and indices carries a risk of capital loss. This article is educational and is not investment advice.
Get the trading plan kit (PDF)
The plan to fill in, the eight questions to ask before acting, the position size calculation and a journal template. You will also be told when the platform opens, on 1 January 2027.